Determining Your First Bid Price

Setting up the first PPC advertising campaign for a web page can prove difficult, with one of the most difficult calculations to make being the initial maximum bid price you should use. After all, you don't have any PPC figures to go off and even if you have existing traffic on your website different sources of traffic can enjoy different conversion rates and different average sales figures therefore offering something of a conundrum in terms of selecting your first bid price.

If you do have existing traffic then you should first use a conservative figure based on the spend per customer generated by that traffic. While it is certainly true that different traffic sources enjoy different spends it does provide a solid base to start your work calculations from. Over time you will be able to change and amend this figure so that it offers a figure more representative of your specific PPC traffic but for now it will help you to build a clearer picture of exactly what that figure is.

It may seem tempting to simply opt for top spot in all keywords but unless you enjoy massive sales figures for every single visitor you receive or you have selected only the most targeted and least competitive of keywords then you may end up paying considerably more than you should for each click that you receive from your PPC advertising. Try to base your maximum bid price on a reasonable starting level, you can always increase it over time.