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How does the SK Tool decide which page and bid to suggest for each query?

bid decide page query SK Tool
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How does the SK Tool decide which page and bid to suggest for each query?

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The tool looks at the content on each page within your website, and pairs keyword suggestions with specific pages that seem to be related. These suggestions are based on a quick scan of your site, so we recommend that you check them for relevance. Suggested bids data represents the approximate average bid to place your ad in the top three positions of a search results page.

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*Sadly, we had to bring back ads too. Hopefully more targeted.