Q: Why Does The Adwords Minimum Bid Change?

If you are new to Google's Adwords program then don't be surprised if you notice that their minimum bids change quite often.

It seems that Google does an initial analysis of your site when you create the ads. This quick scan is used to determine your starting minimum bid. Later, once you have been given some impressions, Google will take a look at your click through ratio and determine whether or not your ads are truly relevant based upon viewer interest.

If you do not get good click through rates, in general, or as compared to other advertisers, then your minimum bid will be raised.

However, from time to time, Google may then drop the minimum bid again and give you a chance to get impressions once again. I'm not sure why this happens, but perhaps it has to do with the click through rates of other advertisers. If their rates fall, or if a successful advertiser runs into a spending limit, Google will do what it can to maximize their revenues.