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What is the Pay Per Click Bid?
Michalis 'BIG Mike' Kotzakolios

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In the world of pay per click advertising, the pay per click bid is the amount you are willing to pay for each click on your advertisement for each individual keyword, as opposed to setting a general budget for the ad itself.

Your ad is created after carefully choosing a set of keywords which potential visitors will key into search engines to find your ad. These ads are the type which stand out from general search listings, but in order to activate them, each keyword has to have a pay per click bid assigned to it.

A bid may only need to be as small as a couple of cents, or may need to stretch to two or three dollars or more if it is a particularly common search term. In selecting the pay per click bid amount, your advertising program might give hints - for example, showing whether or not a particular keyword is currently active for searches according to whether the bid is set high enough. You might be given a suggested minimum bid for each keyword.

The higher your bid amount for the keyword used in relation to the bids of your competitors for the same keywords, the higher your ad will appear in the search listings. You should consider carefully raising a bid too far over the suggested minimum since a common keyword can produce thousands of impressions in a day - though of course these won't all become clicks!

Your pay per click bids can be changed as often as required in order to keep up with the competition. Some days you may find you can bid quite low and other days you may need to raise the bid considerably. Pay per click bidding fluctuates because budgets can be set for a period of time and when the budget is reached, advertising stops until a new bidding period starts. So, ads can drop out of and appear back into searches daily, changing the requirement for the top pay per click bid.

BIG Mike is a well known author, developer and Adsense expert as well as the owner of Niche Maniacs - a unique Adsense Marketing System designed to build long-term passive income streams from Adsense, YPN, Chitika and other PPC services.

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