1.
March 4, 2015
PRACTICAL
BID MODIFIER
STRATEGIES
Ty Martin
Sr. Director of Search Strategy
iCrossing

2.
searchmarketingexpo.com
Ty Martin
#SMX #23B
Recommended
Location Bidding
Strategy:
Location-Based
Bidding
Set different bid modifiers for each
geographic location to maximize
aggregate performance efficiency

3.
searchmarketingexpo.com
Ty Martin
#SMX #23B
Location Bidding Strategy Location-Based
Bidding
Geography Modifier
Sacramento, CA +5%
Redding, CA -3%
Oakland, CA +6%
Monterrey, CA -3%
Los Angeles, CA +4%
Klamath Falls, CA -4%
Daly City, CA -1%
Calculate the demand efficiency of each
geographic location.
Value = Revenue / ClickExample:
Geography Value
Sacramento, CA 1.05
Redding, CA 0.97
Oakland, CA 1.06
Monterrey, CA 0.97
Los Angeles, CA 1.04
Klamath Falls, CA 0.96
Daly City, CA 0.99
Express it as a Bid Modifier to make
it ready for upload to AdWords

4.
searchmarketingexpo.com
Ty Martin
#SMX #23B
Where to Find Geo Data Location-Based
Bidding
Source Example
Your own paid search performance AdWords, search mgmt. platforms
3rd party geographic overlays Household income data from Equifax
Data from your client Customer penetration per market
Site analytics conversion rate Adobe SiteCatalyst, Google Analytics, etc.

5.
searchmarketingexpo.com
Ty Martin
#SMX #23B
Quick Tips on Geography Location-Based
Bidding
• Cap the maximum Bid Modifier at a certain
amount (e.g. +/- 20%) to avoid losing visibility
in the auction entirely
• Set a new location bidding strategy for search
season of the year (approx. 4 per yr)
• Set different location bidding landscapes for each
high-volume campaign

6.
searchmarketingexpo.com
Ty Martin
#SMX #23B
Recommended
Daily & Hourly
Strategy:
Daily & Hourly
Bidding
Set different bid modifiers for each
hour of the day and day of the
week to maximize aggregate
performance efficiency

7.
searchmarketingexpo.com
Ty Martin
#SMX #23B
Hourly Bidding Strategy Daily & Hourly
Bidding
Hour Per Day
ClickValue
Calculate the demand efficiency of each
our of the day
Value = Revenue / ClickExample:

8.
searchmarketingexpo.com
Ty Martin
#SMX #23B
Hourly Bidding Strategy Daily & Hourly
Bidding
Calculate the demand efficiency of each
our of the day
Value = Revenue / ClickExample:
Express it as a Bid Modifier to make
it ready for upload to AdWords
ClickValue
Hour Per Day

9.
searchmarketingexpo.com
Ty Martin
#SMX #23B
Where to Find Hourly Data Daily & Hourly
Bidding
AdWords > Dimensions
Your Search Management Platform
OR

10.
searchmarketingexpo.com
Ty Martin
#SMX #23B
• Don’t assume an hour has low efficiency just because it has
low volume
• Use reporting ‘By Click Date’ instead of ‘By Conversion
Date’ (To raise bids when the click happens, not when the
conversion happens)
• Set hourly bids to zero on Phone Extension campaigns
when call center is closed
• As an advanced tactic, set bids for each of the 168 hours of
the week (7 days x 24 hours)
Quick Tips on Hourly Bidding Daily & Hourly
Bidding

11.
searchmarketingexpo.com
Ty Martin
#SMX #23B
Recommended
Device Bidding
Strategy:
Device Bidding
Set different bid modifiers per
device based on the difference in
performance

12.
searchmarketingexpo.com
Ty Martin
#SMX #23B
Device Bidding Interface Device Bidding
Google: Bing:

13.
searchmarketingexpo.com
Ty Martin
#SMX #23B
• Acknowledge that smartphones are probably
driving more than you are tracking (phone sales,
in-store sales, etc.)
• Use the bid recommendations provided in several
major search management platforms for
guidance
• Take advantage of Bing’s special benefit over
Google: ability to set tablet-level bids
Quick Tips for Device Bidding Device Bidding

14.
searchmarketingexpo.com
Ty Martin
#SMX #23B
Recommended
RLSA Bidding
Strategy:
RLSA Bidding
Set different bid modifiers per
remarketing list

15.
searchmarketingexpo.com
Ty Martin
#SMX #23B
Favorite Bidding Tactics:
Remarketing Lists in Search
Bid higher on searchers that have visited your
site because they’ve expressed intent1
Client X Avg. Rank Cost-Per-Click Conversion Rate Cost-Per-Order ROAS
New 3.4 $0.70 1.1% $64.92 1.64
Returning 1.9 $0.87 2.1% $41.84 2.40
Like many advertisers, this travel client found that return visitors
tend to have far stronger conversion rates than new site visitors
TRAVEL BRAND
RLSA Bidding

16.
searchmarketingexpo.com
Ty Martin
#SMX #23B
Save media spend by
blocking ads from
showing to previous
buyers
2
(If you’re a one-time-
purchase brand)
TELCO BRAND
TV Service
Sign-Up
Exclude from future
TV Service ads
Favorite Bidding Tactics:
Remarketing Lists in Search
RLSA Bidding

17.
searchmarketingexpo.com
Ty Martin
#SMX #23B
Drive repeat purchases
from previous buyers by
raising bids in the future
3
(If you’re a repeat purchase brand)
JAN FEB MAR APR MAY JUN JUL AUG SEP
RETAIL BRAND
Favorite Bidding Tactics:
Remarketing Lists in Search
RLSA Bidding

18.
searchmarketingexpo.com
Ty Martin
#SMX #23B
• Start with the low-hanging fruit: Raise bids for
anybody who has visited your site in the past
• Implement AdWords Conversion Tracking to see
the difference in performance without requiring
duplicating campaigns
• Don’t forget to apply it to Shopping Campaigns
too!
Quick Tips RLSA Bidding RLSA Bidding

19.
searchmarketingexpo.com
Ty Martin
#SMX #23B