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| PPC Bid Management Strategies for SMBs |
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 | April 28, 2011 - The PPC landscape is a lot more difficult for small and medium-sized businesses because larger advertisers (with larger budgets) have access to professional agencies and advanced bid management software. Because their campaigns and bidding are better managed, they achieve better Quality Scores and are rewarded with lower CPCs and higher ad rank. As a result, when small advertisers try to compete, they generally pay more—yet have inferior performance. |
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So how you can you compete with bigger companies? Here are some tips for better handling of PPC bid management: - Advertisers needs to think about the maximum they would be willing to pay for a bid. An advertiser may slowly increase or decrease the max CPC bid and carefully monitor the results: when ROI plateaus, or the returns begin diminishing, then the bid has become optimal—at least, for that day. At the same time, the advertiser should be managing bids with the goal of improving Quality Score; for example, with an eye on CTR.
- Quality Score is central to bidding: high-quality advertisers are rewarded and poor-quality advertisers are punished. There are many elements to Quality Score, such as CTR, that you can work to improve, thus affecting your bid prices.
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