2. SETTING BIDS
The Google Ads keyword auction is a literal auction… meaning the price of keywords goes up and down based on demand. To give an example based on our trampoline scenario… we would assume there’s a price increase in trampoline keywords during the summer and right before Christmas while most other times it should be lower… unless there’s a national trampoline day we don’t know about.
Once we’ve selected the right keywords, we have to determine what the right bid is for each and every one. You want to bid high enough to beat out the competition but not too high as to waste your marketing budget unnecessarily. The example provided shows the estimated search volume and cost per click based on historical data.