After talking to lots of people I’ve never seen a lot confusion relating to how quotes are identified by Google Adwords.

Some people think that you pay what your Max Bid is and others believe that you pay 1 penny more than the person below pays.

Neither of those are in fact real. It’s rather a mix of those. Since they don’t see the necessity in keeping track of quotes, this confusion has lead lots of to pay way to much for there bid position.

Let me provide you an example:

Bidder 1: Max Bid is.55 however pays.51 per click.
Bidder 2: Max Bid is.50 but pays.21 per click.
Bidder 3: Max Bid is.20 but pays.06 per click.
Bidder 4: Max Bid is.05 however pays.02 per click.
Bidder 5: Max Bid is.01 and pays.01 per click.

Hopefully you are seeing a pattern here.

The fact is that you in fact pay just 1 cent more than the person listed below you’s Maximum Bid.

Then why is it crucial to keep an eye on quotes you might ask if Google makes you just pay 1 cent more than the Max Bid of the person below you?

In the scenario above the best worth position is being in # 2 due to the fact that # 2 is paying 30 cents less per click than bidder # 1. The bid gap difference between position # 2 and # 3 is only 15 cents.

You can have almost as numerous clicks as position # 1 for over half the cost. , if you have 1,000 clicks position # 1 is paying $510 and position # 2 is paying just $210.. You are conserving over half which suggests increased revenue margins for your company.

Here a bidder can use a dirty trick to raise how much you are paying per bid with a little-recognized strategy which I call Bumping!

Let’s say you are Bidder 2 and you get used to paying 21 cents per click.

If Bidder 3 is smart (and a growing number of bidders are) he might Bump up exactly what you are paying.

He or she can increase their Max Bid to 49 cents, while still only paying 6 cents per click. All of the unexpected you are paying over double per click than exactly what you were paying in the past.

With Google being a growing number of competitive this is occurring more often and is utilized to cause you to over pay for your clicks, put you out of business or drop your position, so that they can take control of position # 2 for a lower expense than what you are paying.

To avoid having this take place to you, you really need to keep track of all of your bids to make sure that no one is “BUMPING” you. Since everybody is constantly altering their quote prices over the lots of keywords you have, it is nearly difficult to keep up with monitoring this without a specific software …

Neither of those are actually real. This confusion has lead numerous to pay method to much for there quote position since they do not see the need in keeping track of bids.

You can have nearly as many clicks as position # 1 for over half the expense. If you have 1,000 clicks position # 1 is paying $510 and position # 2 is paying only $210. You are conserving over half which means increased revenue margins for your company.