Manage AdWords Like a Mutual Fund

    April 17, 2007

One of the things that I like about Efficient Frontier’s pay-per-click services is their “marketplace” approach to managing campaigns. You effectively tell them what your end goal is (ROI etc) and they manage your PPC campaign, like a financial portfolio, to achieve your goals.

Google AdWords has gotten wind of this simplistic approach to managing a PPC campaign with their launch of a “preferred cost bidding” feature.

Preferred cost bidding allows advertisers to specify the average price they would like to pay per click (a preferred CPC bid) or per thousand impressions (a preferred CPM bid) and let AdWords automatically work to achieve the targeted price.

I spoke with Google AdWords Product Manager, Guemmy Kim, who told me they had recognized “a market for this kind of control” and that preferred cost bidding would bring “more stability” to the costs of paid search.

Preferred cost bidding is designed to be an alternative to CPC or CPM and advertisers can opt in at a campaign or ad level. With today’s launch, only a subset of advertisers will have access to the new feature, but Kim says that all AdWords advertisers will have access by the end of next week.

While experience search marketers will prefer to manage their ads on a more micro level, this addition is a great option for those who have limited time and money to actively manage their AdWords campaign.