PPC & Click Fraud Resource Center
Click Tip - Tuesday, March 10th, 2015 - 4 Bidding Strategies To Help You Work Smarter Not Harder
Google has always tried to be an advertising manager’s best friend. There are a number of AdWords bidding tools that can be used to make life easier, but not all of them are used to best advantage. It is critical to get the highest results of any campaign and a smart advertising manager can maximize what is provided for him or her. AdWords has some features that will make campaign bidding much, much easier.
1. The Automatic Bidding Function
Any advertising manager will recognize this immediately as something Google originally instituted to make bidding less of a nightmare. It emphasizes what the campaign budget assigned for a given day is and whatever is the bid limit placed on the CPC (Cost Per Conversion). It helps maximize the number of clicks without going over the daily budget.
2. Advertising Managers Love Manual Bidding
Such affection is the result of easily understanding what manual bidding can do and how to operate it. The maximum cost per click of a bid is created for an ad group or key word level. The account manager has the option of changing the bid figure, either up or down. It all rests with performance. This is something that is made for anyone who wants complete control over a given advertising campaign. No automation is involved and the account manager makes the decision and inputs it. This will require a lot of report work because the bid adjustments are not automatic at all. The benefit is being able to manually adjust any bids if it appears they are necessary.
3. The Enhanced CPC Is Centered on Clicks
Enhanced CPC is ambidextrous; you can use it for either automatic bids or manual bids. It is intended to maximize the conversion performances that may occur. The account manager needs to use the conversion tracking that is part of AdWords. Past conversion statistics stored in the AdWords systems are the basis for any increases or decreases of the CPC bids. The enhanced CPC does not have the direct reports and there is no way to determine if Google adjusted any bids for given keywords.
4. The Conversion Optimizer
This is a classic example of Google constantly trying to improve bidding for the sake of advertising. CPC bids will concentrate on either the CPC or Cost Per Acquisition (CPA), and bid toward either. This tool requires the AdWords conversion tracking system for optimal effect. It is possible to set upper limits of CPA bids or targets. It all depends on whether or not the account manager wants to set the most that will be paid for a conversion or simply go with an average. This is automated and whatever the CPA bid is Google will go ahead and adjust the keyword CPC so as to reach the desired CPA target. The opportunity cost involved is the control account manager has over given keywords. That is a loss of power over the system, but can be worth it for the campaign sake. Google has an objective of convincing advertisers to concentrate more on conversion. It means that there will be improved performance of conversion, but it will require giving up some authority over the keywords. Results are showing that this barter has been profitable. It is also a situation where
Google looks to automated service as being more efficient. That actually cannot be denied. Manual bidding may be exciting but the possibility for human error is quite high. It is almost a given that the more things are automated the less chance of manual mistakes occurring. An account manager has to orient himself or herself to an environment that is moving very fast. Decisions now are made almost in nanoseconds; this is something that account managers are not able to do. Automated systems are and Google has designed the enhancements to improve advertising performance.
By accepting automation account managers also acclimate themselves to change cycles. Google is not going be slowing down as far as upgrading AdWords. It is highly unlikely that Google will reverse gears and go back to manual systems. If anything, the company will speed up the process with even more sophisticated automation. Getting used to having less control is going to help in utilizing the advanced improvements. Those changes may be not more than just a month or so away from today.
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