Google AdWords Introduces Preferred Cost Bidding

Google has introduced a new bidding option for AdWords. Known as preferred cost bidding, the new feature enables you to set an average cost per click (CPC) or cost per impression (CPM) instead of the general maximum amount.

According to the official blog post:

For example, suppose you want to pay an average CPC of $0.50. Currently, you need to regularly monitor and adjust your maximum CPC bids to keep your costs at or around $0.50 per click. Using preferred cost bidding, you can simply tell us that you want your average CPC to be $0.50, and we'll manage your bids to reach that goal.

The feature is a boon for those who don’t want to spend much time to adjust their bidding prices everyday. The new feature enables an advertiser to set aside a definite budget for his AdWords campaign, thereby offering more control on both money and clicks.  This feature will also help those looking for more consistency in their campaigns. Here is how preferred cost bidding works.

Though impact on ad positioning and eventual ROI is still to be seen, it surely makes AdWords much more accessible to new advertisers. There being no regular fluctuations to deal with, preferred cost bidding is more like an assured mutual fund than the ever changing stock market.

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