Google recently made an update to bidding that you should be aware of. In an email sent to our team this morning Google stated that:
Starting on March 15, 2011, we’ll be removing the managed placements default bid in your account.
This move is to simplify bidding options, but this could cause spikes in cost if you are not familiar with what could happen if you fail to act and make the updates. Most specifically for this scenario if “you don’t have an ad group default bid and are only using a managed placements bid, we will copy the managed placements bid over as the new default bid. Any managed placements with individual bids will still keep those bids.” Considering managed placement bids should convert a higher rater and are thus more valued, you will most likely be paying more for this bid, than you would ever dream for a default bid.