Google Says Adios To Minimum Bids

Ryan Faria - October 7, 2008

I have worked with many different search engines for a long period of time.  Although each search engine remains unique in the tools they offer, one thing remains the same; the required minimum bid.  However, only a short while ago, Google was the first to break this mold by eliminating required minimum bids.  This monumental decision has had a ‘ripple effect’ through the entire Google Adwords interface. 

In the past, keywords were deemed ‘inactive for search’ if a client was not reaching the required minimum bid.  Now, Google has revised this procedure to be more of a quality based approach.  Since there are no minimum bids, Google now informs advertisers when keyword bids are below the first page bid estimate.  The suggested bid amounts vary per keyword and reflect the approximate bid that is necessary for first page search results.

Here are some suggestions to help manage your campaign, based on these recent changes.  Since there are no minimum bids, you want to be sure your ad is not becoming lost in the back pages of Google; this becomes increasingly important for competitive industry keywords and phrases.  Also, be sure that you are still closely monitoring your quality score; the level of the quality score will still impact the position where your ad is being displayed, despite your maximum cost per click bid.  Lastly, stay abreast of current Google tools and features by accessing the official Google Adwords blog and the MoreVisibility blog.  Staying current with industry news will help to keep your account in good standing and remain ahead of the curve when new changes are implemented.