Understand why Google Adwords minimum bid suddenly rise through the roof
Why does Google suddenly raise the minimum bid of my keywords?
Heres the answer as I understand it.
Google, in order to ensure that the user gets the best experience, tries to make sure that what you are advertising, you are also selling (or promoting).
Google is trying to avoid the Internet being clogged with fake adds leading to get rich quick schemes, phishing sites or simply stop people flooding ineffective ads over their network just to get a couple of cheap clicks.
The means Google gives your keywords a quality score. If you have a keywords which appear many times on your landing pages, and also appears in your add, then you will get a better quality score and therefore a minimum bid and a lower CPC (cost per click).
The successfulness of your ad is also important to Google. Google doesn't want to simply fill its search pages with ads. It wants to fill them with ads that work. This means if you use the keyword “iPOD” and are selling underwear (because you think people searching for iPOD's might also want to buy underwear) you might not have a very successful ad. Most people think “I don't care how many times it's shown as long as sometimes people click”,.. well.... Google does care. If your ad only gets 1 in 20,000 clicks, Google will lower its quality rating and your minimum bid will soar. The good news it the reverse is also true, if you ad gets one click in ten impressions, then it will get a great quality score and your minimum bid will be low.
The result of this quality system is that the history of the keywords will affect the minimum bid price and it may suddenly rise if your had have not been successful in the past. Basically you ads need to run for a while before the Google system gets a good handle on them. At first they will appear gradually, some keywords might get given a high minimum CPC bid until the ads appear a few times. If they are successful the minimum bid will lower and more ad will appear.
New users often get caught with the 'Google slap' as it is sometime called, when they wake up in the morning and check their adwords account to find the minimum CPC has gone through the roof.
If this happens to you, don't despair. Here's what you can do:
Improve the quality of your landing page. Make sure your landing page talks about exactly what you are advertising.
Bring you Advertising and your landing page in sync. Make sure the phrases in your ad with Google Adwords, also appear in your landing page.
Give it Time. You need at least 3-6 weeks to see if your ads are good ones and therefore will have a higher quality and lower minimum bid. If after 6 weeks its not going that well, change your ad and try again.
Lastly one important note. If you have tow completely different styles of ads and two different sets of keywords, don't lump them together.
Eg if your selling houses and you have two ads, one targeted at people looking for a house in that area and one targeting people looking for a change of lifestyle. The you should create to ad groups with keywords specific to the two different ads. Don't put both different types of ads and keywords together because your lifestyle keyword might put the location specif ad in front of someone on the other side of the planet and therefor lower its effectiveness, lower its quality rating and send your minimum bid CPC into orbit.
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Posted in You too can (how to articles)