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Chapter 3: Basic Bidding Strategies

INITIAL BIDDING STRATEGIES

Bidding is often the most complicated aspect of managing your Yahoo! Search Marketing account — but it doesn’t have to be. How high should you bid? How closely should you manage your bids? Are there tools or tricks to help? This chapter aims to answer these questions and provide you with guidance to help you bid smarter and reap the rewards.

In This Section:
• Key bidding concepts
• Maximum bidding
• Three bidding strategies

Key Bidding Concepts

• Don’t just guess at bid levels. Base bids on your business model, business objectives and supporting metrics.
• Don’t bid so high that you don’t make a profit.

• Don’t bid so low so that your listings dip out of the market.
• Monitor the performance of your account and adjust bids based on what you learn.

 

Maximum Bidding

With Maximum Bidding, you set the maximum you are willing to pay for a click, and the system will automatically adjust your bid to get you the best price available. You pay only 1 cent more than the maximum bid of the listing below yours. For example, if your maximum bid is $.50 and the maximum bid of the listing below you is $.42, you pay $.43 per click. Yahoo! Search Marketing’s systems continually monitor the bid prices to ensure that you never pay more than your maximum bid for a click.

MAX BID
SET TO
With Maximum Bidding