There exists a lot of ambiguity when it comes to choosing right kind of PPC bidding strategies for your company. Very often you can see marketers wondering whether to start off with lower bids and then gradually increase it to get better position and then more clicks and higher ROIs or to start off with higher bids directly and then gradually lower them to get better cost per conversion. What most people fail to realize is that these strategies depends wholly on your objectives and your current situations. In general, these strategies can be classified into 2 different approaches: aggressive approach and prudent approach.

An aggressive approach to bidding strategies

As per this bidding strategy, marketers tend to bid high and then slow it down over a period of time. PPC bidding strategies that follow an aggressive approach tend to contain different components like: Competitive advantage, Rapid results and Halo effect. There are many companies that open their campaign with an air of competitive advantage. There exists a strong desire or need in them to enter the market and gain a significant share almost immediately. These days it is not hard to find companies, small and large, experienced and inexperienced wearing this attitude.

Then there are other companies that are aggressive in collecting initial click and convert data very quickly. This is to ensure that there is quick keyword and bidding refinement. Very good examples for this scenario are B2B companies that are targeted for specific niches. In these circumstances there are very few people looking for relevant keywords and hence an aggressive approach is vital at the start of the campaign. Else, it might take several months to convert data or to accumulate enough number of clicks.

Going about a new PPC campaign can be very useful because the higher ad positions could mean higher CTRs and can in turn lead to higher QS (Quality Score). This will further ensure that your ad will be positioned higher than before. This “halo effect” can persist even if the campaigner bids lower going forward.

Prudent approach to bidding strategies

These PPC bidding strategies are suitable for companies that have limitations on their advertising budgets, and have enough time for refining and testing. Most of the companies that follow these strategies with hundreds of keywords view their performance over the first few weeks and then take a decision on it later.

The important aspect associated with this approach is to bid just high enough to get a reasonable ranking for your high performing keywords. Companies, in these cases, tend to bid just enough to get into top 4 or 8 positions, so as to break into first page of the results.

Conclusion

Irrespective of the size of the company and the business it is engaged in, the approach to PPC bidding strategies has to be based on its objectives and the situations that it is currently confronted with. However, companies need to be extra cautious in implementing these strategies as they can be too costly if not exercised.