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I thought I had a pretty good grip on AdWords until the automated assistant made some suggestions that did not track for me:

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How can lowering my bid increase the number of clicks? I could certainly see how lowering it could keep the number of clicks the same, but to increase?

The only thing I can think of is if Google figures for my ad text it makes no difference in CTR if it is 1st or 2nd (for example), so 2nd gives me the same CTR for less, meaning more impressions and more clicks overall? Is there any other logical explanation?

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Campaign in question is about brands. Screenshot does not say precisely what niche are you in, but I'd bet that (at the moment) you simply don't have much competition for branded terms, used in this particular campaign. Thus, bidding less will get you more clicks.

Branded terms are in general a very different beast than generic queries. It is best to keep them in separate campaigns.

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  • But it is called a bid, meaning no competition should see me paying less than my bid anyway. Obviously someone else is bidding for the same keywords too? You seem to know about this, can you point me to more resources about branded campaigns? (This is a separate campaign indeed.) – Mahmoud Al-Qudsi Jan 16 '17 at 13:02
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Say you have 10$, and you bid $2 per click. That is 10/2 = 5 clicks.
Say you have 10$, and you bid $1 per click. That is 10/1 = 10 clicks.

The price per click is lowered, so you can have more clicks for the same budget. The downside is that if someone pays $1.50 per click, their ad will be shown in favor of yours, because that someone else is paying more.

The trick is finding the balance between an optimal price vs max-clicks-per-budget. I'm guessing the automated message suggests your current bid can be lowered a bit so that you get more worth for your money, at least according to the balance on which the automated message is based.

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  • That's my max bid though, no? As in, if no one is bidding against me, I'm not paying my bid. FWIW, my bid is more than my avg cpc (obviously). – Mahmoud Al-Qudsi Jan 16 '17 at 13:04
  • If you lower your bid your average CPC will go down as well. There are some cases where you are paying more than the average. Think of it as turning off those expensive clicks. – Stephen Ostermiller♦ Jan 25 '17 at 10:25
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Its a simple problem i think this might help you,

In adwords you choose your daily budget for your ad-group or campaign and those budget can be spent through out the day and your click can be utilised with your selected (given daily budget). For example,

Consider you set your ad-group/campaign daily budget to $100. And for particular ad-group you set cpc bid value as $10 then you get 10 clicks. If you reduce the cpc bid amount to $5 then you get 20 clicks (Thats the reason google recommends you ). Think your main motto is to get a user to your website and you want to make profit if your clicks increase then you will successful in your business..

Feel free to ask if you have any queries!!...

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It can mean your budget isn't being eaten up by a few clicks on expensive keywords, but instead is being used to get more clicks on less expensive keywords. However, the most important issue isn't what gets you more clicks, it's what gets you more conversions.

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At a static budget, clicks increase as CPC goes down, meaning you can get more clicks. If you have $1000 and pay $10 per click, you get 100 clicks. If you are only willing to pay $5 per click, you get 200 clicks.

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