If you use managed placements to manage bidding or targeting on the Google Display Network, you might have at one point questioned why you saw three separate default bids in your ad groups: a regular default bid, a managed placements bid, and a Display Network bid.

We’ve heard feedback from advertisers that it’s confusing to work with these three default bids (and most of you don’t even use default bids for your managed placements--preferring to set bids individually). In an effort to simplify things, we’ll be removing the managed placements default bid starting on March 15, 2011.

After this change, you’ll be able to continue managing default values for both managed and automatic placements by using a single Display Network default bid. Individual bids for managed placements will allow you to maintain the flexibility you have today.

Here’s how this change will affect you:

• Starting today, we're no longer allowing managed placement bids to be set for new ad groups containing placements. You won’t be required to enter a new bid when you add managed placements for the first time (we’re launching this change gradually, so it may take about a week to reach your account).
• Starting on March 15, we’ll automatically update existing managed placement bids. There are several changes we’ll make in order to make sure your ads will continue to serve as normal with the bids you intended. Learn more about the changes that apply to your account in our Help Center.
• If you’re eager to say goodbye to the managed placements bid today, you can do that too! You can change your managed placements bid to 0, which will cause it to disappear from your account (this change is also launching over the next week).

One important note: AdWords Editor 7.6 is not compatible with this change. Any changes to managed placements bids in this version of Editor will result in an error. Please make sure to download the latest version of AdWords Editor to manage your bids.

If these changes apply to your account, you’ll be receiving an email from us with additional details and will also see an announcement in your AdWords account. There’s no need to take any action in your account, but you can always feel free to adjust your bids at any time.

Posted by Lisa Shieh, Inside AdWords crew