Increasing your CPC bid on adwords will not always give you a better result. You need to spend your dollars tactically on quality key words. To optimize the budget and bid there are some things worth considering.

 1. Cost-quality relationship

First you must know how the Quality Score of your keywords will help you to minimize your costs. Scoring a 10/10 on quality will reduce your CPC. A lower CPC means more clicks for your daily budget.

 Improve the Quality Score

As you have already understood the importance of a higher quality score, you are now must be willing to focus on the improved Quality Score. To do so you need to ensure that,

• The keywords and ads are relevant to the content of the site;
• The quality of the landing page has improved enough &
• The click-through-rate is facing an upward trend.

This will ensure a better score and save your valuable dollars.

Create interesting ad text

Determine the keywords that will describe your business and match the visitor’s search and thus provide you with a good number of clicks as well. You can also use the operator {keyword:your keyword} to get the Adwords ads to auto-generate the keyword for you. Your ad texts must include at least one interesting keyword with clear benefits for the visitors. Create as many ads as you can with multiple variations in ad text. These ad texts should reflect information of your landing page.

2. Return-on-investment

Return-on-invest (ROI) is the return or profit realized from the ads compared to dollar spent on the ads. You are investing to get benefit from it. So, you must have an expected rate of return for the ads campaign. Take the time before spending on the projects to identify how much return it can offer to you. Remember one thing, the ROI is not concerned with your budget, it’s concerned with the bid you make.

Determine the ROI

To measure the profitability of the ads and keywords of your site, you must go with the conversions of those. You will have the some free tools like Conversion Tracking or Google Analytics to track the keyword conversions. Now, when you have the conversion reports in hand, you can find out the poor ads and keywords. You have two options, modify those or delete.

Benefits of optimized conversion

The conversion tracking should be done at a lower cost. On this regard, you can use Conversion Optimizers. These free tools will benefit you with enhanced attributes that will help to reduce the cost, save time, and increase the ROI.

Improve the ROI & Conversion

So far, we have learn about the ROI and its importance. Now, let us focus on how to improve this ROI.

Profitability can’t be ensured by any single means of action. You need to pay attention on several issues including these.

Use relevant landing page;

• Use relevant ad text and keywords to attract more potential visitors;
• Make a user friendly website;
• Relate the bids for profitable and unprofitable keywords;
• Use free or lower cost Conversion Optimizers to track conversion;
• Link profitable websites to your ad group as placements.

3. Testing & allocating of bids & budgets

To determine the optimal point of bids and budgets, you will now need to post different bids along with different budgets on any particular or different websites. Keep the posted amounts changing to see the difference. Take a break of few days before changing the amounts every time to make the change effective. When you are finished, create a table showing the cost and benefit for each and every points.

Find out the most profitable mix of bids and budgets

Now, it’s simple to find out which of the campaign will give you a positive ROI. To invest in many of the campaigns it’s important to have a good budget. While deciding your portfolio of campaign, keep in mind, invest more in the most profitable keywords and ads. You can also emphasize more on any particular product if you want it to get maximum traffic. If there is a budget constraint, cut some of the campaigns that are not providing you with the expected rate of returns.