With pay per click (PPC) advertising, you will likely need every trick in your bag to stay ahead of the competition. As the PPC landscape has become increasingly competitive, it is becoming harder than ever to run cost-efficient campaigns within saturated markets. But utilizing some of the following bid management strategies will help you gain the edge back on your competition.

First, don’t outbid your own budget. Just because there is a bidding war going on doesn’t mean you have to get caught up in it. Remember that if you spend more to get customers than the profit you earn by converting them on the backend, your entire campaign is not only a waste of time, it’s actually a waste of money also. It is much better to have fewer clicks and get them at a price where you can achieve ROI (return on investment) then to get caught up in a bidding war you can’t win. Plus, with fluctuations in the PPC market, just try to ride the low waves, and avoid the high waves.

The next thing you should do is forget about what ranking you are on a SERP (search engine results page). Bid an amount that you can afford, not for the spot you want. If you are in the top spot or the fifth spot, it doesn’t really matter. It is a good idea to try and get on the first page if you can, but beyond this you shouldn’t worry about it too much. Also, consider this: people click on the top spot without even thinking about it too much. This will lead to many clicks that have no chance of turning into conversions, drastically lowering your conversion rate and reducing your margins. Only bid for the top spot if you are the dominant player in your respective industry – or you wish to obtain this title, and realistically have the resources to do it.

Another bid management technique that you can make work for you is bid jamming. Certain PPC services have a bid system that is public, allowing you to see the bids of all your competitors. If you have a very direct competitor, you can consider jamming their bid. Basically, PPC services operate similar to an online auction site. If you bid .25 per click, and the next closest competitor bids .13 per click, you will pay .14 per click not .25. So, if your competitor is bidding .25, you may want to bid .24 so that they pay full price for the bid. If you do, they may not be able to keep the top spot for as long.

These are some basic bid management techniques that can help you maximize ROI with your PPC advertising campaign. Remember that patience can go a long way to maximizing the efficiency of your PPC campaign. Don’t be afraid to wait for your moment, and then seize it when it comes.

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