AdWords Preferred Cost Bidding Analysis You've probably seen this new type of bidding in your account by now - preferred cost bidding versus maximum cost per click bidding. But should you use it?

I tried the settings on my own account for a week and this is what I found. I got:

25% less clicks
16% less impressions
8% less click throughs
a 4% higher overall average cost per click
I spent 5% more overall

For me preferred cost bidding increased my costs and decreased my performance.

When would I even consider using preferred cost bidding?
If you have a product that you are selling online that is a set price and you want to have a set advertising cost to hard code in for your ROI equation, then I feel preferred cost bidding would be right for you. Would I recommend other advertisers change to preferred cost bidding. You may want to try it like I did, but Google did not make a billion dollars in profit last quarter for nothing. I just don't think that this new option will replace the maximum Cost per Click bidding that is used more frequently. I think that in the long run to have a set average bid will cost you more and not deliver the clicks and impressions that you want when tested over time.

Labels: Google AdWords

  ¶ 5/07/2007 07:53:00 AM