Are You Out of the AdWords Auction? How to Tell

The AdWords clients that come to me typically are small to medium sized business owners who have tried to do AdWords themselves and not been successful. Because they feel AdWords could work for them, based on what they have read, they want a professional AdWords account manager to optimize their account. In many cases when I take over an account I see that the client was not bidding enough to be in the auction. Here are a few examples:

Client A Last Month Activity

30 day click budget $1,800
Clicks  received 3
Impressions received 250
Current max. CPC setting $1.01
Average ad position 1.2

Client B Last Month Activity

30 day click budget $2,600
Clicks received 12
Impressions received 800
Current max. CPC setting $4.00
Average ad position 9

In the above examples there are two scenarios. In the first case it appears that there is simply no demand for the Client A’s products as his ads are showing in position 1.2 but yet he has very few clicks. In the second scenario, for Client B, it appears that he may be below the first page bid or have a quality score problem.

In both cases I would say that the client is simply out of the auction. When you are bidding too low, based on your marketplace, Google may deliver your program but at very low rates. In fact, you may see a high ad position but very few impressions. In other cases you may see a very low average ad position figure. But both are true indications that your maximum cost per click setting is simply too low.

To re-mediate the problem, I recommend for a seven day period changing your campaign settings to allow Google to set the keyword bids without a bid cap. This will allow you to see where the market place is bidding and then you can evaluate what a fair price is for your click, based on what your competitors are paying.

Check in Wednesday to read my post on how maximum CPC and daily budget work together to either keep you out of the auction or get performance.

For more information about our Google AdWords account management services visit our AdWords program page.