Oh, the good old conversation about bid management software! Recently we’ve seen the inclusion of a big new player in bidding : Google.
With Automated Rules and AdWords Scripts, Google has entered into the bid management software space and they are doing excellent. I have never liked as I like having my own key word data outsourcing the bid management part to a 3rd party provider in-house and I don’t need to cover an often substantial fee either.
However, implementing automated bid management today is really easy that many advertisers tend to treat AdWords as if it were some sort of passive money making machine.
Not understanding why their campaigns did not produce outcomes anymore they turned to us.
This blog post is a response to what I have seen Recently occurring when PPC advertisers outsource their bid management process completely to applications.
Downward Spirals Following a Bad Week Might Limit Your Potential
In a recent AdWords accounts that had been using automatic bidding through Portland pay per click management rules I saw a big decline within the potential profits derived from the campaigns.
Granted, there were a lot of great changes made to the bids throughout the 44 active campaigns, however there was also a big number of faults. The account utilized a bidding system for
: pos. inferior to 2. Decrease bids by 10% for keywords with a Worth per Conversion / Price lower than 5 and at least 1 conversion. On paper the rules above look great. Reduce prices when the keyword isn’t profitable and raise the keyword when it is being profitable. The issue with blindly using a bidding system just like the one above is you could easily cause a downward spiral. Seeing that there are no rules in place to “test” keywords, then after you have started decreasing the prices for a key word opportunities are that you’ll keep decreasing them. A common scenario for briefly low conversion rate is a competitor doing a promotion that you could not follow.
Your conversion rate and CTR will take a hit for the duration of the promotion, but will recover once the adversary’s promotion ends. The bidding for select keywords may be decreased to such an extent they end up in a low position from where they seldom generate another conversion. All of a sudden formerly rewarding keywords are now hidden away and the opportunities to find them again in a huge account are quite slender to none if you don’t have any “red flags” in place.
Automated Bid Management Can Skew Match Type Bidding
Broad Match and BMM keywords can be a great way to improve profits and comprehension for any AdWords campaign.
Nevertheless, you have to keep the keywords in line. Especially Broad Match keywords can be difficult to work with. Among the keys to working with Broad Match isn’t to bid excessively. I regularly keep Broad Match keywords in a 4-5 typical position and let my BMM, phrase and exact match keywords inhabit the top 3 ad spots. within this scenario, Broad Match keywords have a naturally low cost per conversion and an automated bidding system might bid them higher than wanted on them if you do not put specific restraints.