Warning: Why Bidding Low is Costing You Profitable Campaigns
I had no idea how to tackle bidding when I first started running campaigns.My reaction (and I’m sure of many newbies) was to bid the bare minimum. I wanted to play it safe and not lose any money.
Once I started tracking and testing I realized that bidding higher was more profitable most of the time.
Why Bidding Lower Doesn’t Mean Increased Profits
In a normal business you can save money by buying your goods for cheaper.
This logic doesn’t always work when you’re buying traffic.
John is making $1,000 a day profit and bidding $1.00 CPC on his campaign.He lowers his bids by 10%, and expects profits to increase as a result. What happens is he ends up losing money.
The premium placement he’s making money from costs a minimum of $1.00 CPC.By bidding lower he loses access to the placements that is making him money.
If a placement makes money then there’s going to be higher demand for it.
That’s why it’s important to track the profitable of each placement.
Let me give you another example on why bidding higher works better.
Newbie Note: Popunder Traffic is when a client goes to a website such as Bodybuilding.com. Most “ads” are shown on the website. A “Popunder” means your pre-sell page, is going to be window that’s Underneath. The client will see it when they move their window or exit out of the main browser.