I'm trying to setup an ad and am using the traffic estimator tool to try and gauge how much keywords are. For many of the keywords the tool tells me $0.08, but when I setup the ad it tells me I need to raise the bid to $0.25 in order for them to be active.

Is there a more effective to approach to getting an accurate bidding price before setting up the ad?

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Visit AdSimple - Internet Marketing and Internet Advertising
Payday Loan Online

which company do you use (Google, Overture, ...)? Is the 0.25 the minimum you can bid by terms and regulations?

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Huntersville web design
Virginia web design

It sounds like you're using AdWords?

Are you trying to link your keywords to an affiliate site or direct to a 3rd party (merchant)?

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Adrian
Impact Media

It does look like your bids are being forced up by a low quality score.

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SEO UK | SEO Blog | Google AdWords Management

There are a few other things to consider here.

Firstly your minimum bid is based on both your historical clickthrough rates on that keyword and the global clickthrough rates of your entire account.

Secondly which Keyword Tool are you using? The one in the Tools section or the one Google provides when setting up an account.

These tools can produce different bid estimates -- as the one in the Tools section uses your Global clickthrough data, while the one within a campaign uses campaign clickthrough data.

The bottom line is you need to increase the clickthrough rate of your adds -- globally. This will definitely help with min bids.

Oh and one last note. Cheap keywords are usually cheap because they don't convert as well as expensive keywords.

Regards
David Tislini