The most effective form of AdWords bid management isn't raising and lowering your maximum bid, but rather pushing down your minimum, or “first page” bid, which you do by strategically and effectively grouping and organizing your keywords. Learn more about AdWords bid management here.

1. AdWords Bid Management: Using Keyword
Management to Lower Costs
The most effective form of AdWords bid management isn't raising and lowering your maximum
bid, but rather pushing down your minimum, or “first page” bid, which you do by strategically
and effectively grouping and organizing your keywords.
Early in the process of learning AdWords, you may wonder, what is a minimum bid? According
to Google, “A minimum cost-per-click (CPC) bid is assigned to each keyword in your account
based on its quality (or Quality Score). The minimum bid is usually the lowest amount you can
pay per click in order for your keyword to show ads."
So by raising your Quality Score, you can lower your minimum bid and CPC.
Luckily, search engines like Google reward search marketers who group their keywords. When
your ad groups are closely related, your ads are more relevant to the keywords you're focusing
your AdWords bidding on, which in turn lowers your minimum first-page bid and CPC. Since
you're getting more qualified clicks, you're making the search engines more money, and they
reward you by increasing your Quality Score. What's the most effective way to organize your
keywords so you can reap this benefit from search engines?
WordStream's keyword management solution makes achieving a lower minimum bid easy by
organizing your keyword groups in a hierarchical structure and integrating directly with Google
AdWords. Organize keyword groups, ad groups, and text ads all from one interface in
WordStream for easy AdWords bid management.
How Higher Quality Scores Help AdWords Bid
Management
So we know that grouping keywords can help boost your Quality Score. What other factors
improve your Quality Score?
A high AdWords click-through rate for your ads. This means that your text ads are
correctly targeted for your site and are bringing qualified traffic.
Ad text must reflect the keywords you're bidding on.
Ads should direct someone to a highly relevant, optimized landing page.
Repeat, repeat, repeat! PPC is never a “set it and forget it” scenario. You must
constantly maintain your campaigns and refine your keyword list in order to stay at the
top of the competition and reap the benefits of a low minimum bid in your bid
management strategies.

2. Using Keyword Research as AdWords Bidding Research
You can't know which terms are best to bid on if you don't know which terms are drawing people
to your site. You need real, personalized keyword data, not just an estimate of worldwide search
data. You also can't know which terms are most cost-effective if you can't keep up with your
snowballing list of keywords.
PPC and SEO are iterative, labor-intensive, continuous processes. If you can't keep up in your
pay per click advertising management efforts by expanding and managing your keyword list into
the thousands of valuable keywords you need (which no one can do on their own), you end up
sacrificing business opportunities. Without a keyword management solution like WordStream,
you inevitably cost your business the time and money you could gain by targeting your most
qualified audience with the most expansive, highly qualified keyword list possible.
How does keyword research impact AdWords bidding research? Because WordStream searches
your site's log files for visitor keyword data, you're seeing the terms that are actually working to
bring search traffic to your site. You know which terms are driving traffic, and you can use this
data to help determine your AdWords account bids.
How Keyword Taxonomy Impacts your AdWords Bidding
Strategy
You may be pleasantly surprised to find that many of your most high-performing key terms are
also the least expensive. By segmenting your keyword hierarchy into groups, you can approach
AdWords management in an organized way, creating ad groups from keyword groups, and
whittling down from there.
Over time, you'll continue to prove the effectiveness of your campaigns with the search engines
by showing AdWords that your terms are relevant. As a result, your costs will continue to go
down as your Quality Score increases, and you'll secure better ad positions in Google's sponsored
links. With WordStream, it's a win-win.

3. The Ultimate Bid Management Solution
You've seen how WordStream can help with your AdWords bid management strategies. Now it's
time to take the next step in improving your Internet marketing campaign! From here, you can:
Try WordStream Free Today
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