Advice for Adwords
December 6, 2013
According to Eric Liu, chief custodial technician at Rocket Lease, people are using Google Adwords wrong. He offers advice on how to correctly use the advertising tool in his blog post: “How To Bid For CPC Campaigns (aka “Stop Doing Adwords Wrong”). Liu states that most Adwords advice suggest users play the guessing game with bidding. By grouping keywords together and applying a consistent bidding strategy users can rely on computers to manage their ad campaigns to make the biggest profit.
Liu calculated how to maximize profits with an algebraic formula and illustrates with sample scenarios. The formula is a bit complex to follow, but play around with few numbers and it should work out.
Liu notes that his formula is entirely experimental:
“It’s important to note again that you can’t look up the information to set your CPC bids or calculate it theoretically — it has to be determined experimentally. There’s nothing you can do to just start with the perfect campaign. You will make your best guesses, experiment, and then use the feedback to estimate the shape of the curve. That means you will start by running suboptimal campaigns, then use the information to get closer to optimal. The better your initial guesses, the less money you’ll spend in the “curve discovery/estimation” part of the process.”
Who says you do not use math outside of high school? By applying Liu’s formula you may be able to make a little more money out of your Web site’s ads and lower overhead costs.
Whitney Grace, December 06, 2013
Sponsored by ArnoldIT.com, developer of Augmentext
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