The first choice you have to make is whether you need to use manual or automatic bidding. If you select manual bidding, you can specify exact CPC rates for each keyword or group of keywords you create. Another option is to use automatic bidding, for which you don't have to make a precise CPC bid.
If you select automated bidding, the only real choice you need to make is the maximum amount you want to pay per click. The PPC ad network will then make the best bid below that level to maximise the number of potential clicks for your daily budget.
The good thing about automated bidding is that it's less work and guesswork for you personally. You set a maximum bid, and the ad network does all of the bidding, never exceeding your maximum amount per click. For that reason, automated bidding is the recommended approach for new or inexperienced PPC advertisers.
Unhealthy thing about automated bidding is that it typically pertains to all the keywords in an ad campaign. You can't set different CPC rates for various keywords or keyword groups, that is required for some of the more sophisticated bidding strategies; you allow up a lot of control. For that reason, manual bidding may be the recommend approach for many advanced PPC advertisers.
Of course, different keywords sell for different rates. It's logical, really. Those keywords that more advertisers want to use get higher bids and have higher CPC rates; those keywords that aren't as popular have lower CPC rates. So it's just like easy to bid at the top of a low-priced keyword because it is to bid have less a highpriced one.
If you bid way too low, your ad simply won't appear for any given keyword. And if you consistently bid lacking on keywords, you won't generate enough visitors to make your campaign profitable and therefore reduce your campaign's return on investment (ROI).
On the other hand, if you consistently bid too high on keywords, you'll spend more advertising funds than you need to and also reduce your ROI. That's why you need to figure out how you can bid the right amount neither excessive or lacking to strike the best balance between traffic and cost. This will maximize your ROI for any given campaign.
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