You might think PPC bidding is the same as any brick-and-mortar or online auction where the winner is always the highest bidder. The truth is: it doesn’t work that way.
Securing prime real estate in paid space requires a healthy mix of bid amount and ad quality. A low bid for a high-quality ad, according to Google AdWords, will always outbid a high bid for a low-quality ad. Based on these calculations, the winning bid also gets the least cost per click, so two birds with one stone.
Clients can choose among three main bidding strategies. One of which is to use the AdWords’ Conversion Optimizer tool. Using Google’s algorithms, Conversion Optimizer draws up a model indicating the best time to bid for paid space. During auctions, it will automatically optimize your bid so that you get the best possible ranking without breaking the bank.
Not everyone can benefit from Conversion Optimizer, namely shopping campaigns due to seasonal changes in consumer behavior. As the tool uses past data, spring data is less likely to be applicable for summer campaigns. Year-round products like plumbing, roofing, and dentistry can benefit from Conversion Optimizer (although they often respond to seasons just as much).
Then again, anything can happen from season to season, so it would be better to loosen up when planning your next move instead of relying solely on the model.