Higher PPC Bids vs. Lower Bids: Which One Wins

By Richard Farr

PPC is not SEO. I’ll let that settle in. Really, PPC is NOT SEO.

Higher rankings through SEO is a good thing; whereas, striving for a higher average position in PPC isn’t necessarily more profitable.

Let me show you why with an example.

Below are two identical campaigns: One was implemented with the goal of achieving higher PPC bids (the kind of high bids clients sometimes bully us into doing); and the other campaign was executed to capitalize on much lower (systematically determined) bids.

Which results would you rather achieve?

By clicking on the graphic above, you’ll see that the cost per lead of the lower bid campaign was about 1/3 of the higher bid campaign! Which means that a $120k per year campaign spend with high bids produced the same amount of conversions as a $40k per year campaign spend with low bids. (A $80k per year savings just by playing it smarter.)

Will lower bids work for you?

I suggest that you run a test for yourself and see what is more profitable for your business.

Good luck.

The following two tabs change content below.

• Bio
• Latest Posts

Richard Farr

PPC Strategist at Paragon PPC

Richard has always enjoyed analyzing data: First, in a career in quantitative finance followed by a career in digital marketing. He specializes in PPC management for companies spending at least $50k/mo in AdWords. Richard has a Masters Degree in Economics with a concentration in Financial Engineering from Florida State University, and he's both a Google AdWords and Google Analytics Qualified Individual.

Latest posts by Richard Farr (see all)

• Higher PPC Bids vs. Lower Bids: Which One Wins - August 30, 2013