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Keyword Bid - Marketing Glossary

Keyword Bid


Keyword Bid refers to the maximum amount an advertiser is willing to pay for a click on their ad when it appears for a specific keyword in pay-per-click (PPC) advertising campaigns. It plays a crucial role in determining ad placement and visibility on search engine results pages (SERPs).

Example of how you can use Keyword Bid

For instance, in Google Ads, advertisers set keyword bids based on their budget and campaign goals. Higher bids increase the likelihood of ads being shown prominently in search results, potentially leading to more clicks and conversions.

Key Takeaways

  1. Bid Strategy: Advertisers should develop a strategic bidding approach to optimise ad spend and maximise ROI.
  2. Competitive Landscape: Understanding competitors’ bidding behaviour helps in setting competitive keyword bids to maintain ad visibility.
  3. Keyword Relevance: Bidding on relevant keywords aligns with user intent and improves ad performance and conversion rates.
  4. Budget Allocation: Effective budget allocation ensures that keyword bids are adjusted to prioritise high-value keywords and target audiences.
  5. Bid Adjustment: Continuous monitoring and adjustment of keyword bids based on performance data are essential for campaign optimisation.


What is keyword bidding?

Keyword bidding is the process of setting the maximum amount an advertiser is willing to pay for a click on their ad when it appears for a specific keyword.

How do I determine the right keyword bid for my ads?

The right keyword bid depends on factors such as keyword relevance, competition, ad budget, and campaign goals. Conducting keyword research and monitoring performance metrics can help determine optimal bids.

Can I change keyword bids during a campaign?

Yes, advertisers can adjust keyword bids at any time during a campaign to optimise performance and budget allocation based on real-time data and campaign objectives.

What is bid management software, and how does it help with keyword bidding?

Bid management software automates the process of adjusting keyword bids based on performance data, enabling advertisers to optimise bids efficiently and effectively.

How does keyword bid affect ad position on SERPs?

Higher keyword bids increase the likelihood of ads appearing in higher positions on SERPs, leading to increased visibility and potentially more clicks.

What factors influence keyword bid competitiveness?

Factors such as keyword relevance, search volume, competition, and industry trends influence keyword bid competitiveness and ad placement.

Can I bid on multiple keywords within the same ad group?

Yes, advertisers can bid on multiple keywords within the same ad group and adjust bids individually based on keyword performance.

How often should I review and adjust keyword bids?

It's advisable to review and adjust keyword bids regularly, considering factors such as campaign performance, changes in competition, and shifts in market dynamics.

What is the difference between manual and automated keyword bidding?

Manual keyword bidding involves setting bids manually based on advertiser discretion, while automated bidding relies on algorithms to adjust bids based on predefined rules or performance targets.

Can I set different bids for mobile and desktop devices?

Yes, many advertising platforms allow advertisers to set separate keyword bids for different device types to optimize ad performance based on user behaviour and device preferences.

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