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Pay Per Click Bid Management

The big question, of course, is how much should you bid? Here are a few things to consider:

  1. You must understand how much a click is really worth to you; most companies do not know this.
  2. The higher your position, the more traffic you are likely to get.
  3. In general, if you’re not in the first three positions, there’s a good chance your ad won’t be seen often and will get dramatically lower clickthroughs. Google, for instance, syndicates their top three AdWords to sites such as AOL, and Yahoo! displays the top three (sometimes four) results at the top of their search results.
  4. Sometimes you may want to take position 3, because you want to be in the first three, yet position 1 is just too expensive. Many PPC marketers like positions 5 and 6; they still get a lot of clicks, but at a much lower price than higher positions.
  5. Other times, you may notice that position 1 is just $0.01 more than you’re already paying; it may be worth paying the extra $0.02 to leapfrog the current bidder, just to boost your click-through.
  6. There’s always a minimum bid level — $0.10 on Yahoo!, for instance, and $0.03 on Enhance.
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