How do I choose a bid in Google AdWords?

You choose a bid in Google AdWords by setting your maximum cost per click (max CPC) within each ad group or for each individual keyword. The amount you choose for each bid depends on how much your competition is willing to spend on each keyword.

Choosing a bid in Google AdWords is fundamental to running a successful Google advertising campaign. Since Google AdWords uses a bidding system to determine the price and placement of ads, you need to know how to properly choose a bid.

When you create each ad group, you’ll have the option of selecting a default bid (max CPC) for each keyword in that ad group. You can also customize your bid for each keyword in the keywords section of the Google AdWords campaign manager.

To help you determine a competitive bid for each keyword, Google provides tools that estimate the current bid for specified keywords. Google also shows when your keyword bids fall below the first page bid estimate.

Keep in mind that you can trump a competitor’s higher bid by maintaining a higher quality score. Google determines how much you’ll pay for ad placements not just by your max CPC, but also by how high your quality score is for each keyword. Often a high quality score will get your ad placed over a competitor who might be willing to bid more than you.

See: What makes people instantly click Google Ads now?