Longtail keywords are essential to any successful pay-per-click (PPC) strategy. They drive targeted traffic, improve conversion rates, and often have a lower cost per click (CPC) than generic terms. However, many advertisers struggle with one crucial question: How high should I bid on longtail keywords?
In this guide, we’ll break down everything you need to know about longtail keyword bidding, including optimal bid strategies, factors influencing CPC, and determining the correct bid to maximise your return on investment (ROI).
What Are Longtail Keywords and Why Do They Matter?
Longtail keywords are concrete search terms typically consisting of three or more words. They tend to have lower search volumes but higher conversion rates because they align closely with user intent. For example, instead of bidding on “running shoes,” you might target “best running shoes for marathon training.”
Benefits of Longtail Keywords in PPC
- Lower Competition: Fewer advertisers bid on these terms, making them more affordable.
- Higher Conversion Rates: Since they target users with clear intent, they often lead to better conversions.
- Improved Ad Relevance: Google Ads rewards high-quality, relevant ads with lower CPCs.
Factors That Influence Your Longtail Keyword Bids
Before deciding how high I should bid on longtail keywords, consider these key factors:
1. Keyword Competition
Even though longtail keywords generally have lower competition, some niches are more competitive than others. Use tools like Google Keyword Planner or SEMrush to analyse CPC trends.
2. Industry Benchmarks
Different industries have varying CPC averages. For example, the legal and finance sectors typically have higher CPCs than e-commerce or blogging.
3. Quality Score
Google assigns a Quality Score based on expected click-through rate (CTR), ad relevance, and landing page experience. Higher scores can lower your CPC.
4. Search Intent
Bidding should align with intent. You can justify a higher bid if a longtail keyword indicates strong purchase intent (e.g., “buy waterproof hiking boots online”).
5. Your Budget & ROI Goals
Your bidding strategy should match your PPC budget and overall business objectives. A slightly higher bid may be worthwhile if a keyword brings high-value leads.
How to Determine the Optimal Bid for Longtail Keywords
1. Use Google Ads’ Bid Simulator
This tool provides insights into different bid amounts and their impact on impressions and clicks.
2. Start with Manual Bidding
If you’re new to PPC or testing longtail keywords, start with manual bidding to control costs before switching to automated strategies.
3. Adjust Bids Based on Performance Metrics
Monitor key metrics such as cost per acquisition (CPA), click-through rate (CTR), and conversion rate. If a keyword is profitable, consider increasing the bid.
4. Use a Bidding Formula
A simple way to determine your max bid is:
Max CPC Bid = (Conversion Rate × Customer Lifetime Value) ÷ Target ROI
This formula ensures that your bid aligns with profitability.
5. Implement Bid Adjustments
Use bid adjustments for factors such as device type, location, or audience segments to refine your bidding strategy further.
Smart Bidding Strategies for Longtail Keywords
1. Target CPA (Cost Per Acquisition) Bidding
It is ideal for businesses looking to maintain profitability while automating bids.
2. Enhanced CPC (eCPC)
This semi-automated strategy adjusts bids based on the likelihood of conversion.
3. Maximise Conversions
Google’s automated bidding strategy prioritises conversion volume.
4. Manual CPC for High-Control Campaigns
It is best for advertisers who want complete control over their keyword bids.
Common Mistakes to Avoid When Bidding on Longtail Keywords
- Overbidding on Low-Intent Keywords – Ensure the keyword has clear commercial intent.
- Ignoring Negative Keywords – Prevent wasted ad spend by excluding irrelevant searches.
- Setting and Forgetting Bids – Regularly optimise based on performance data.
- Not Testing Different Bidding Strategies – Experiment with both manual and automated bidding.
Final Thoughts: How High Should You Bid on Longtail Keywords?
The correct bid depends on multiple factors, including competition, industry benchmarks, and ROI potential. Start with a strategic approach—using bid simulators, manual testing, and automated strategies—to find the perfect balance between cost and performance.
By following these best practices, you can ensure that your longtail keyword bidding strategy maximises profitability while keeping CPCs within budget.
Are you ready to optimise your PPC campaigns? Start bidding smartly on longtail keywords today and watch your ROI soar!
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