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With Microsoft Advertising, you’re in control of your budget. You set the highest price that you want to pay each time someone clicks your ad - this is what your bid is. Set this price as the default bid for all your keywords in an ad group, or customize the price for each keyword.
With default bidding, you set the bid when you first create an ad group and it automatically applies to each keyword in the ad group. This means less work for you, and is ideal for any keywords you don’t want to actively manage.
For example, if you set a default bid of $1, that’s what you’ll pay by default when someone searches for any of your keywords and clicks on your ad. Because default bidding applies automatically after you set it up, we recommend default bidding if you’re new to search advertising or want a low-maintenance approach to paying for your ads.
In addition to setting a default bid, you can set custom bids for each keyword. If you set a custom bid for a particular keyword, this bid amount will override the default bid you initially set when you created your ad group. We recommend custom bidding for advanced advertisers who want more control of their pay-per-click rates.
You can have Microsoft Advertising manage or set your bids for you automatically. To learn more, check out Let Microsoft Advertising manage your bids with bid strategies.
Remember to review your performance data a day or two after you change your bid. You can use the Change History Graph to see each action made to your campaign over time, as well as Performance Insights and the Competition tab to quickly identify improvement areas. Regularly reviewing your changes with these tools helps show if you bid too high or low, so that you can make adjustments.