OK, so you're getting your online advertising campaign off the ground, and you can control your overall spend per day with your daily budget. But what should you really be bidding per click?
Different countries, different bids
Firstly, due to market dynamics in each country, bids can vary vastly. Here a few average benchmarks from Ad Dynamo's marketplace to help guide you:
|Africa (ex South Africa)
Not all keywords are created equal
Keywords that are bid on by many advertisers will require a higher bid for you to 'win' traffic. Selecting less obviously keywords can help you to maintain a lower cost per click. For example, bidding on 'insurance' will generally require a high cost per click, whereas bidding on more abstract terms such as 'managing risk' or 'buying a car' may typically yield just as good customer conversions, but at a lower cost.
Top Tip: Remember that you can always begin with a low bid & Ad Dynamo's system will advise you if it should be higher - look out for a pink exclamation mark next to each keyword that requires a higher bid.
|When to consider CPM bidding?
The Ad Dynamo marketplace ranks ads against each relevant web page based on a number of criteria. One of these criteria is the historic performance of the ad, most commonly measured by Click Through Rate. If your ad is not being clicked regularly, the Ad Dynamo system will down rank your ad & it will receive progressively less exposure. If you alter your bid to a CPM bid, then Ad Dynamo ignores your click through rate & you continue to win exposure.
If your ad is performing extremely well, and the click through rate is high, it may also be cheaper to bid on a CPM basis as you won't be paying for each click.