| Google Adwords and Yahoo! Search Marketing works differently than most of the other PPC search engines. Typically, you can not really control the position of your AdWords / Yahoo !listing 100% and when it will be shown, because your ad position is determined by many factors, the most important factors are: your daily Budget, maximum cost-per-click(MaxCPC), your ad’s actual click through rate(CTR) and the quality of ad copy.
Since you cannot directly control your ad’s actual click through rate and position, managing your keywords on Google and Yahoo! is a big challenge and consume a great deal of time. If you do not manage your keyword bids properly, you will waste a lot on your advertising money on Google Adwords and Yahoo Search Marketing.
With Bid Max, it will allows you to change your MaxCPC dynamically based on your Position setting. It works on a "Try-Its-Best" basis. Here is a screenshot of the Bid Max™ interface for Google AdWords:
The bidding formula for Google / Yahoo! is very complicated. Basically, Bid Max™ will control your position by increasing and decreasing the bid amount according to the bidding formula below:
MaxCPC = (Current position - Desired position) x Bidding Level
Please refer to "What is the difference between the Bidding Levels of “Aggressive”, “Normal”, “Conservative” and “By Preserved Bid Value”?" |
