Are You Finding 'Bumped' On Google Adwords?

Right after consulting with several individuals I've never observed so much confusion concerning how bids are determined by Google.

Some individuals believe that you spend what your Max Bid is and other individuals think that you spend 1 penny more than the

individual beneath pays.

Neither of these are actually accurate. It really is rather a mixture of these. This confusion has lead a lot of to spend way to much for there bid position due to the fact they don't see the necessity in monitoring bids.

Let me give you an example:

Bidder 1: Max Bid is .55 but pays .51 per click.

Bidder 2: Max Bid is .50 but pays .21 per click.

Bidder 3: Max via Bid is .20 but pays .06 per click.

Bidder 4: Max Bid is .05 but pays .02 per click.

Bidder 5: Max Bid is .01 and pays .01 per click.

Hopefully you are seeing a pattern here. The truth is that you in fact pay only 1 penny more than the individual below you's Maximum Bid.

But then why is it important to monitor bids you might ask if Google makes you only spend 1 cent much more than the Max Bid of the person below you?

In the senario above the best value position is getting in #two simply because #2 is paying 30 cents much less per click than bidder #1. The bid gap difference between position #two and #three is only 15 cents.

So you can have nearly as numerous clicks as position #1 for over half the cost. If you have 1,000 clicks position #1 is paying $510 and position #2 is paying only $210. You are saving more than half which signifies increased profit margins for your organization.

But here a bidder can use a dirty trick to raise how significantly you are paying per bid with a little recognized technique which I call Bumping!

Let's say you are Bidder 2 and you get utilised to paying 21 cents per click.

If Bidder 3 is savvy (and a lot more and much more bidders are) he could Bump up what you are paying.

He/She can enhance their Max Bid to 49 cents, even though nonetheless only paying 6 cents per click. All of the sudden you are paying more than double per click than what you were paying just before.

With Google being a lot more and more competitive this is happening much more regularly and is used to trigger you to more than pay for your clicks, put you out of organization or drop your position, so that they can take more than position #two for a lower cost than what you are paying.

To steer clear of having this take place to you, you genuinely require to monitor all of your bids to make positive that no one particular is "BUMPING" you. Nevertheless, given that everybody is often changing their bid prices more than the several keywords and phrases you have, it is almost impossible to keep up with monitoring this without a particular software program...