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2017 / 16 January

How a higher BID can get you a lower CPC on Adwords Search Campaigns

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In this article, I will try to explain how you can achieve a lower CPC on your Google Adwords search campaign by increasing your keyword bid.

Of course, it is not just about selecting all keywords in your account and use the “increase bid” option on Google Adwords. You will need to identify which keywords would benefit from a higher bid.

What I will be explaining is based upon one simple principle: if there are keywords in your account that have a lower CPC than your average current account CPC and those keywords are not serving one hundred percent of its impression share, you can benefit from it by increasing its bid.

Let me highlight the two variables you’ll need to identify:

1. Keywords with a lower CPC than the account average

2. Of those ones, which keywords do not have an impression share of 100% percent

By increasing the number of clicks on your campaign with a lower CPC your current account average will decrease.

To do this, you can follow the next steps:

Go to your account keywords report and create the following filter:

Keywords with a lower CPC than your account average, at least 0,01 cent lower.

After that, create another filter for keywords that do not have an impression share of 100%.

And there you have it. The list you will get after applying this filter will be a list of keywords that will drop your account average CPC.

Wait — you say — if I’m raising the bid on all these keywords won’t I be paying more at the end of the day by increasing these keywords’ CPCs?

Well, good question. What will happen in the end, though, is that — even if you increase the CPC of these keywords by giving them a higher bid — it should always compensate as your overall account average will be lower, since you will be having more clicks from cheaper keywords.

Just give it a try and let me know how it went.

Cheers!