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Maximum Bid Price Calculation - Mark Evans

Maximum bid prices should reflect the true value of a keyword. The true value depends on factors unique to each business such as product margins, conversion rate, and average order value. These three pieces of data are typically used in the maximum bid price calculation. In this video, Mark Evans of Ionic Media suggests a few tweaks to the equation to more accurately represent the value of keywords to your business.

Length: 4 min.

You will learn:

  • How to calculate maximum bid prices for keywords
  • Why you may want to factor in acquisition costs to your maximum bid price calculation
  • Why using the average lifetime value of a customer may give you better results
  • Why you may want to separate ad groups by margin
  • How seasonality can affect your maximum bid prices
  • The correlation between search volume and conversion rates

 

 
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