Search Engine Land recently published my article entitled The Pitfalls of Budget-Constrained Bidding, where I examine the downsides of both over- and underbidding on keywords.
The dangers of overbidding are well known: generating low-quality traffic at a high-cost per click (CPC), while blowing through limited budgets with few results. Bidding too little can also have adverse consequences, namely gifting top result spots to competitors and wasting valuable campaign resources.
For a more thorough explanation of how to avoid the pitfalls of budget-constrained PPC Bidding, make sure to check out my article on Search Engine Land.
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