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Pay Per Click (PPC) Glossary

PPC Glossary Terms: Bid Price

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Filed under: Pay Per Click (PPC) Glossary by Geoff @ 9:58 am

When establishing a PPC campaign, the advertiser is required to set their maximum bid price for each individual campaign. This can be done according to a preconceived value per visitor or it can be done so that your ad is guaranteed to reach a certain position within the sponsored advertisement listings on search pages. Both methods have their merits and different PPC managers will usually employ one or the other technique to determine the bid price.

When you set a maximum bid price you won't necessarily have to pay this amount for every click. If your PPC maximum bid price is high enough to gain you the top spot in the results then you will only have to pay the amount that would be required to ensure you got that position. The same is true for second, third, fourth position and so on. Other PPC campaign factors, including the click through rate of your ad and the relevance of both your ad copy and landing page copy will also help determine the actual bid price you need to pay.

Bid price is one of the most important aspects of a PPC campaign that you should constantly monitor, especially if you choose to bid automatically to gain a certain position. Other campaign's bid prices can vary dramatically and they can do so quickly. If a bidding war starts and you get caught in the middle of it, it's conceivable that your maximum bid price could suddenly shoot through the roof before you have chance to do anything about it.

Please see PPC Bid Management for more information.

Related posts:

  1. Determining Your PPC Cost Per Click
    In PPC advertising, you need to set a maximum bid that you are willing to pay per click. This total bid price will help determine the position of your ad although in most cases it won't be necessary to pay this figure. Various factors determine the actual amount you pay,...
  2. PPC Bid Management
    PPC, or pay per click advertising, allows website owners to generate traffic from search engines using the sponsored listings that are displayed at the top and side of the search results. Some search engines also offer advertisers the opportunity to have their ads displayed on the websites belonging to their...
  3. PPC Glossary Terms: PPC
    It would be remiss to discuss any glossary terms related to PPC without first defining PPC. Short for Pay Per Click, PPC advertising is a form of online marketing that allows websites to display ads on search engine result pages and publisher websites, usually according to chosen keywords, and is...
  4. PPC Glossary Terms: CTR
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  5. Top Spot Or Lower?
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Learn more about Pay Per Click.

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This entry was posted on Friday, October 24th, 2008 at 9:58 am. You can follow any responses to this entry through the RSS feed.

Responses to “PPC Glossary Terms: Bid Price”

  1. PPC Glossary Terms: PPC - About Pay Per Click (PPC) - Click Consult Internet Marketing Blog Says:

    [...] pages and publisher websites, usually according to chosen keywords, and is then charged a maximum bid price each time a visitor clicks on the ad to be navigated to their web [...]

  2. Rachel Says:

    In PPC campaign keywords are very important for search engine optimization. This is the main part of SEO campaign regarding keyword and products and services should be closely related.

  3. Brooklyn Says:

    PPC campaigns are a bit expensive rather than other programs of SEO services and this is the reason it can’t be run for longer time.

  4. Audrey Says:

    It depends on how long to run this program for SEO campaign and unique visitor listing of people and view page and how many times the web has visited the site.

  5. Xavier Says:

    In PPC program major search engines take interest in PPC program because through this program income comes to the search engine so in very short period of optimization can be achieved.

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    Success of this program depends on many factors such as lots of short acronyms of words which are used in the optimization of site.

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