Pay-per-click (PPC) is a highly competitive advertising platform. With more and more companies signing up for PPC campaigns every day, advertisers have to bid higher””not only be within the top three positions of the sponsored listings, but to be on the first page of results. Though bid position is not solely based on the maximum amount of money you are willing to spend per click (also known as maximum cost-per-click, or CPC), it is one of the key components. The conundrum: how much you are willing to bid for your ads to show up as close to the top of the listings as possible?
Your budget plays a huge role in how much you are willing to bid, but other factors come into play as well. Among these are the importance of each targeted keyword to your campaign, the way the ad copy is written, and the landing page of each ad. Here’s a look at each of these factors in greater detail: