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    Please suggest how to bid or set payment for keywords


    I have created my first Google Adwords campaign...but i have few doubts in keywords...

    please suggest the following message i got after creating ad group..

    search engine optimization service - Eligible - auto: Rs.25.30

    search engine placement - Eligible - auto: Rs.25.30

    1. is this the default amount fixed by Google for keywords or we need to fix..

    2. is this the maximum cpc amount fixed by Google or competitor

    3. can we increase or decrease the actual keyword amount

    for example current keyword search engine optimization service - Eligible - auto: Rs.25.30

    if i set search engine optimization service - Eligible - auto: Rs.20.00 where will my add appear.


    Last edited by Sanjeet.Seo; Aug 16th, 2012 at 05:52 AM.
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    Contributing User
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    Google itself does not set prices on keywords. It is a marketplace and prices are dependent on two things. First, what others are bidding for the same keywords. Second, your Quality Score (QS).

    The keywords you mention are in fairly high demand and with many providers. This tends to drive the price up. After all, one SEO client can make thousands off a client's lifetime so competition can be fierce and thus CPCs relatively high. It's not unusual for many in that field to be willing to bid $5, $10 or even $20 per click. Note that's their maximum bid, not what they actually pay.

    What they actually pay depends on the QS and bid of the competitor below them and their own QS. It's more than I want to type here and I did write an Adwords FAQ that explains it so search for "adwords faq lucid web marketing".

    What it boils down to is that QS is driven by CTR so to decrease what you pay, increase your CTR. The values given to you are to show your ads on the first page. This is a rough estimate and mostly based on your QS.
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    The Dog Guy
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    lucid is right, in general. Here are some additional thoughts.

    You dont need to be ad position one to get clicks. If you get too many clicks, you can blow your budget quickly. Just make sure you are above the fold (perhaps position five) to start gauging demand for your ad.

    Make your ad relevant and truthful. No point getting high CTR and low end result (sales etc).

    A lot of this is about monitoring how your ads go, and which ones you drop, modify or change bid price on. As competitors change as days change, the market and bid price requirement can change dramatically. Keep records so you can find trends and predict what you may need to adjust weekly etc ...

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