Bids on Pay Per Click Ads Lesson, Google/Overture

Discussion in 'Business Operations' started by mdvaden, Mar 14, 2004.

  1. mdvaden

    mdvaden LawnSite Bronze Member
    Posts: 1,945

    This week, I realized an interesting angle in Pay Per Click Ads at Overture (could apply at Google Ads too).

    One big Pre-Screened Landscaper Service had big bids in at $3 per click - much higher than the 5 cent to 76 cent bids of other companies. I wasn't sure if is to be intimidating or not. But I realized that even though they bid ato 3.00 per click, they only get charged up to 77 cents per click, because an option is available to fix a click charge at 1 cent above the next highest.

    That means the "Mr. 76 cents" gets charged 76 cents, because "Mr. 75 cents" at next lowest bid does not allow the 76 cent bid to go lower.

    So, it became apparent, that anyone bidding around 10 cents to 75 cents per click, could easily bid $2.99 cents when there is a $3.00 bid in that keyword phrase. Why? Because, as long as the company down around 50 cents doesn't raise up to $2.98, that means the $2.99 will really be charged a cent above what is probably 50 or 51 cents. But "Mr. $3.00" would start to see a radical slurping up of advertising funds as the previous 77 cent click charges rose to the real level of the bid at a solid $3.00 per click.

    The key is, anyone that tries this modification, needs to check their bids daily or bi-daily for a fair while to make sure that the $3.00 company does not go below the $2.99 you may change to, or that the 50 cent man does not raise up to $2.98.

    The Pre-Screener Landscape ad companies advertise in multiple states and communities. If landscapers in many cities and suburbs started to boost the bid per clicks simultaneously to $2.99 per click on Overture and Google Ads, the impact of ad funds, and the nuture of pay per click could alter dramatically.

    In the end, fluctution in this kind of bidding could result with all the max bids being not only a bit lower, but more closely fit together like 24, 25, 26 cents rather than 21 cents, 50 cents and $3.00

    :cool:
     
  2. Rex Mann

    Rex Mann LawnSite Senior Member
    Posts: 621

    The whole bidding thing is a skill in itself.
    We use exact words within phrases people are most likely to type into a search engine. Then we go from there. Our highest rate is .15 for words. And, we have a click-thru-rate of 5%, which is well above the average for click-thrus.

    Peace,

    Rex
     
  3. mdvaden

    mdvaden LawnSite Bronze Member
    Posts: 1,945

    Apparently, anything above a 0.5% click rate is okay, as Google will "neutralize" a search term that does not get clicked 1 time per 200 impression displays.

    The percentage factor can be misleading. "Portland tree service" is a good rate for us - no other way, they are after a company. But "portland landscape designs" has a low click rate because the full phrases may be "portland landscape designs" as in looking for a designer, or "portland landscape designs" as in people searching for a book with samples, or even a book about designs in relation to "landscapes" style photos or page layouts.

    Our main goal is to keep the overal cost reasonable and list as many terms as possible to glean customers whether its on the first click or number 186.
     
  4. Rex Mann

    Rex Mann LawnSite Senior Member
    Posts: 621

    You make many good points. We almost have to "get-inside-their-head" as to what they might type when looking for services we provide.

    Peace,

    Rex
     

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