Beware the Penny Bids: Switching Bidding Methods in Google Ads

Ad House Advertising has been at the forefront of Digital Online Advertising since 2007. “Back in the day”, Google provided excellent service, even inviting our staff to the Google campus for meetings on three separate occasions. However, times have changed. The digital giant has changed its customer-focus, leaving Google Ads programmers in the dust.

Navigating the Intricacies of Google Ads Bidding Strategies

Google Ads programmers know all too well that navigating the intricacies of Google Ads can be a daunting task, especially when it comes to bidding strategies. One crucial aspect to watch out for is changing your bidding method from an automated, AI-driven approach back to manual CPC (Cost-Per-Click). This seemingly straightforward switch can have unexpected consequences for your campaign performance.

The Pitfall of Resetting Bids to $0.01

When you switch from an automated bidding strategy to manual CPC, Google Ads will automatically reset your ad group and keyword bids to a mere $0.01. This drastic reduction can go unnoticed, leaving you puzzled about why your campaign suddenly has no traffic or impressions.

Here’s why it happens: automated bidding strategies are designed to optimize your bids based on various factors, such as user behavior, competition, and ad performance. When you revert to manual CPC, the system doesn’t retain the previous bid amounts optimized by the AI. Instead, it sets your bids to the lowest possible value—one cent. This can be disastrous for your campaign, as a $0.01 bid is unlikely to compete effectively in any auction, resulting in a significant drop in traffic and visibility.

How to Avoid This Pitfall

To avoid this pitfall, it’s essential to carefully review and adjust your bids after switching to manual CPC. Inspect your ad group and keyword bids to ensure they are set at competitive levels that align with your campaign goals. By doing so, you can maintain control over your advertising budget and performance, ensuring your ads continue to reach your target audience effectively.

At Ad House Advertising, we recommend regularly monitoring and managing your Google Ads campaigns to prevent such issues and optimize your advertising efforts. If you need assistance with your bidding strategies or overall campaign management, our team of experts is here to help. We were one of the first 850 Google Partner agencies in the United States and we love making online advertising work and creating true ROI for our clients in the Albuquerque area and around the United States.