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Bid management is a search engine marketing tool used for paid campaigns or pay-per-click ads to achieve higher rankings on the search engine results page. It involves bidding on keywords and tracking conversions to determine which keywords are most successful and should have higher bids. Bid management software can automate the process.
Bid management is a search engine marketing tool that is used to achieve higher rankings on the search engine results page (SERP) for sites like Google, Yahoo, and MSN. Unlike traditional search engine optimization practices, bid management techniques are employed in paid campaigns or pay-per-click (PPC) ads. To properly understand bid management, it’s important to first understand how PPC ads work.
When a person searches the Internet, they are presented with a list of results that the search engine has deemed relevant. This list of results usually includes natural results and paid advertisements. Natural results are often found in the center of the page, while paid ads are found at the top, bottom and/or right of the page. These are paid advertisements, so every time someone clicks on the ad, the website owner pays for that click, that’s why it’s called “pay-per-click” advertising.
The amount charged to the website owner depends on the keyword used to find the ad. For example, if the user typed “bid management,” that’s the keyword that triggered the ad. Since the website’s ad was listed on the results page, this means that the website is bidding on the term “bid management” and is therefore willing to pay a fixed amount for each click the ad receives when someone search for the term.
There are many different websites competing for space on the results page, so search engines have to list or rank ads in a specific order. Of course, everyone wants to be at the top of the page, as these ads are the first people see and are more likely to be clicked on than those further down the page. Instead of randomly listing ads, the search engine instead lists ads based on how much the website owner is willing to pay for the click.
When someone sets up a paid campaign or PPC ad, one of the first things they need to do is decide which keywords are relevant to the ad and then bid on them. The starting bid depends on the popularity of the keyword: more common keywords tend to have higher starting bids. The person setting up the ad then determines the maximum amount they’re willing to pay for that keyword and provides that information to the search engine. This is the maximum bid for that keyword.
Thereafter, a bidding war ensues between all the other websites bidding on that particular keyword, and the ad with the highest bid gets a higher placement on the search results page. Unfortunately, there’s no way to know how much another site is bidding for a keyword, so bidding can get tricky. This is where bid management comes into play.
Bid management is the art of researching which keywords are most important to a website’s PPC ad. To determine this information, the website needs to track its conversions, the number of visitors who took a desired action, and then figure out which keyword resulted in the most successful conversions. With this information, the person in charge of the marketing campaign can determine which keywords are more successful and should have higher bids.
Successful bid management techniques are time consuming and the process can be challenging even for search engine marketers. For this reason, many people prefer to use bid management software, an automated system that tracks conversions and clicks, compares them, and then adjusts bids based on this information. Whether a business prefers to use automated software or manually track information, they should use bid management techniques to run a successful pay-per-click ad.
