Andy Black
Help people. Get paid. Help more people.
Staff member
FASTLANE INSIDER
EPIC CONTRIBUTOR
LEGACY MEMBER
MEMBER
With AdWords paid search, doubling your bid price moves your ad higher up the page where you’ll get twice the CTR (mileage will vary obviously, and this doesn’t work if you’re already in top ad position).
So you’ve doubled your traffic volume.
THEN, because there are less advertisers competing for the higher ad positions (because they can’t afford the higher CPCs), your ads show more often in that higher ad position. Let’s say twice as often (aka your Impression Share has doubled).
So your ads are showing twice as often, in a higher ad position where you get double the CTR.
Which gives you quadruple the volume.
The double whammy benefit is that if you doubled your CPC because you managed to double you conversion rate and you’re just going back to your previously profitable CPA, then you’ve ended up with 8x the number of conversions.
It’s a beautiful thing when it happens.
However, there’s a downside. If you halve your CPCs, then you’re going to end up with 25% of the traffic.
So it’s knife edge stuff. Your performance can go through the roof, or crash and burn.
A sure fire symptom of you being on the wrong side of the algorithm is if you keep pushing bids to maintain ad position and maintain click volume. That means Google’s AdWords algorithm prefers your competitors campaigns to yours. You can’t really bid your way out of it (although of course it does help a bit… hence Google’s common canned advice to “bid more”).
So you’ve doubled your traffic volume.
THEN, because there are less advertisers competing for the higher ad positions (because they can’t afford the higher CPCs), your ads show more often in that higher ad position. Let’s say twice as often (aka your Impression Share has doubled).
So your ads are showing twice as often, in a higher ad position where you get double the CTR.
Which gives you quadruple the volume.
The double whammy benefit is that if you doubled your CPC because you managed to double you conversion rate and you’re just going back to your previously profitable CPA, then you’ve ended up with 8x the number of conversions.
It’s a beautiful thing when it happens.
However, there’s a downside. If you halve your CPCs, then you’re going to end up with 25% of the traffic.
So it’s knife edge stuff. Your performance can go through the roof, or crash and burn.
A sure fire symptom of you being on the wrong side of the algorithm is if you keep pushing bids to maintain ad position and maintain click volume. That means Google’s AdWords algorithm prefers your competitors campaigns to yours. You can’t really bid your way out of it (although of course it does help a bit… hence Google’s common canned advice to “bid more”).
Dislike ads? Become a Fastlane member:
Subscribe today and surround yourself with winners and millionaire mentors, not those broke friends who only want to drink beer and play video games. :-)
Access Restricted: Unlock 1,000,000+ Posts
Stop Peeking Through the Keyhole.
Open the Door.
You hit a wall because the best advice isn't free—it's earned. Since 2007, MJ DeMarco has been active here daily (99.9% active rate), building a war room for entrepreneurs who refuse to settle for mediocrity.
- Active Daily: Life-changing content posted dozens of times every day. No dead threads.
- MJ's Inner Circle: Direct access to the author of The Millionaire Fastlane.
- Vetted Network: Connect with founders scaling to 7 and 8 figures.
- Proven Roadmaps: Strategy over motivation. Execution over "hustle porn."
"SCALED TO 6-FIGURE MONTHS"
"Tips and advice here saved me from huge mistakes, others allowed me to scale my business to 6-figure months."— User MitchC
"INSANE QUALITY OF PEOPLE"
"The number of high quality people I've met from this forum has been insane. All of it predicated on building real value."— User Richard Peck
"You are the average of the five people you surround yourself with."
Are you surrounding yourself with success?
