Position2 ConfidentialPosition2 ConfidentialJul 14, 2011 www.position2.com 1

Position2 ConfidentialPosition2 Confidentialwww.position2.com 2

A bid is an offer made on goods or services. Most associate bids with auctions, but

a bid can also be made on...

A bid is the amount you're willing to pay per click, per thousand impressions, or per

acquisition.

Position2 Confidential

This is a process where you bid on your choice of Ad words, keywords or keyword

phrases, depending on how much you can afford and how effective the word is. The

purpose is to get your product or service at the top of ads advertised in various websites.

You have the option to increase your Cost Per Click (CPC), Pay Per Click (PPC), or Cost

Per Action (CPA.)

www.position2.com 3

Position2 Confidentialwww.position2.com 4

Position2 Confidential

Ad group Level :

Keyword Level:

www.position2.com 5

Position2 ConfidentialPosition2 Confidentialwww.position2.com 6

Focus on clicks: Cost-per-click (CPC) bidding:CPC bid refers to the amount we’re willing to pay for a click on our ad when the ad appears on Google

or one of our partner sites. CPC bidding is recommended if you're mostly interested in getting traffic on your

site

Two options for CPC bidding:

• Automatic bidding

• Manual bidding

Position2 ConfidentialPosition2 Confidential

Focus on conversion: Conversion Optimizer

• Conversion Optimizer uses AdWords Conversion Tracking data to get more conversions at a lower

cost.

• It optimizes placement in each ad auction to avoid unprofitable clicks and to get as many profitable

clicks as possible.

Requirements in order to begin using the Conversion Optimizer:

• AdWords Conversion Tracking must be enabled.

• The campaign must have received at least 15 conversions in the last 30 days.

• The campaign must have been receiving conversions at a similar rate for at least a few days.

Position2 ConfidentialPosition2 Confidential

Focus on impressions: Cost-per-thousand impressions (CPM) bidding

Targeted to the Display Network. Choose to bid for impressions on your ad, and pay for every

thousand times your ad appears. Mostly interested in branding and getting ad visibility.

Note that when CPC and CPM ads compete with each other in the same Display Network auction, the

Ad Words system uses a system of effective CPM, or eCPM, to compare and rank the ads.

www.position2.com 8

Position2 ConfidentialPosition2 Confidential

•Maximum CPC or CPM bid represents the highest amount that you're willing to pay per click or

thousand impressions, respectively, on your ad

•Set a bid at the ad group level, or for individual keywords and placements

•If you don't specify a maximum CPC or CPM bid for a given keyword or placement, the ad group

maximum CPC or CPM bid will automatically apply

•If you have both keyword-level and placement-level bids within an ad group, and an ad shows on

one of the placements for which you've set a bid, the placement bid applies

•Your maximum CPC bid must be at least US$0.01. Your maximum CPM bid must be at least

US$0.25

Position2 ConfidentialPosition2 Confidential

Position2 ConfidentialPosition2 Confidential

Ad scheduling:

A tool for adjusting your bids for different times of day or days of the week.

Demographic bidding:

A tool for targeting your ads to specific groups of customers visiting certain sites in the Google

Display Network.

Position preference:

A tool for specifying in which positions you'd like your ads to appear.

www.position2.com 11

Position2 Confidential

Focused on clicks - automatic or manual CPC bidding

Focused on building awareness of a product or brand on the Google Display Network - CPM bidding

Focused on a particular customer action, such as leads or purchases - Conversion Optimizer (CPA bidding)

Newer advertiser and like to use manual CPC bidding, consider using automatic bidding to determine what CPC bids you might want to use. After you use automatic bidding for a few weeks, you can then switch to manual bidding and set ad group bids to the appropriate levels

Implement Ad Words Conversion Tracking to see how much conversions cost when you're using various CPC bids

Use the bid simulator to see the possible advertising results you could get if you used a different keyword maximum CPC bid. The bid simulator doesn't predict the future, but it estimates the click, cost, and impression data that your ads would have received over the last seven days had you set different keyword-level bids. To see a bid simulation for a keyword, click the bid simulator icon next to the maximum CPC bid

Determine which keywords or placements are giving you the best results. Adjust bids and tailor ads as necessary