AdWords: First Page Bid Estimates

March 7th, 2010 by Kim Clinkunbroomer Leave a reply »

First page bid estimates are what google approximates you would have to pay to be visible on the first page of search results when the search query exactly matches your keyword.  This first page bid estimate (FPBE) is based on your keyword  quality score.  If your keyword quality is low then you will likely have a higher FPBE than you would have if your keyword quality score were better.

Checking your first page bid estimates is a good way to identify areas for improvement, develop a bidding strategy, and identifying keywords that may be less expensive than others.

There are two ways to view your first page bid estimate.

1. keyword/placement performance report. Customize the report to show the First Page Bid Estimate.

Customizing your Keywords/Placement Performance Report to show First Page Bid Estimate

2. Spreadsheet edit feature is a quick way to review your first page bid estimates.

AdWords First page Bid Estimates

How to View your First Page Bid Estimates in Spreadsheet Edit.

The spreadsheet edit will display the first page bid estimates like this:

Spreadsheet Edit - First Page Bid Estimates

Again, look at your first page bid estimates from time to time to analyze what effect your quality score has on your account.

Click here to read more about quality improving quality score.

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Kim Clinkunbroomer, GAP

Posted by: Kim Clinkunbroomer, GAP

Owner of Clinks Web Service & AdWordsPI in Chicago, Illinois

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3 comments

  1. Tom Hale says:

    I agree, FPBE and Quality Score very much go hand-in hand.

    If you are short on time and money – do more with keywords related to high Quality Score and low FPBE.

    That is the low hanging fruit and the words you are getting the best buy on because Google thinks you are aligned with searcher intent on those words.

    And now Kim has shown you some ways to find those best priced words ;-)

    -T

  2. Gwen says:

    Hello, Kim, thank u very much for ur kind help in the Adwords Help Forum. And i am a little confused of the fiugure in the third table. For example, the FPB of the first keyword is $0.15, but why set the Max. CPC to $1.10 ?

    Now i have met such a problem, that is some keywords with low serch volume, but high quality score and highly related to my website, the FPB is also very low, sometimes $0.10, then whether does that mean these keywords will not perform well in the future bec maybe they are some new keywords in Google ?

    • Hi Gwen, Thanks for the note!

      The first page bid estimate is an approximation of what you need to pay to be on the first page of google search results. Now that means the last position on the first page. As the positions increase from the last on the first page to the FIRST on the first page the competition becomes much more intense and the bidding needs to be increased at times to overcome the advertiser infront of you.

      Your rank in the auction is based on the Quality Score X Max Bid. If you are competing with other advertisers who also have a good quality score the action comes in the form of bidding to increase the rank of your ad in the auction.

      What you actually PAY is determined as step #2 of the auction. You pay the amount of the the max bid of advertiser below you + 1 penny to place your ad ahead of theirs. That is the simple explanation, there is plenty that goes into that as far as your quality score and other formulas that are best explained in the video linked here from Google’s Chief Economist Hal Varian. He does a great job to simply (as possible) explain the Google Ad Auction. http://www.youtube.com/watch?v=K7l0a2PVhPQ&feature=player_embedded#!

      As for your question about the low search volume keywords…again, dont worry about the first page bid estimate…it is just an indicator of what you need to bid to at least make the first page and again remember what you pay is a different story. The low search volume keywords will not effect your QS – you can leave them sit and if the traffic on these keywords picks up they will become active.

      Take Care,
      Kim

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