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Practical Bid Modifier Strategies

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From the SMX West Conference in San Jose, California, March 3-5, 2015. SESSION: Deep Dive: Ad Bidding Strategies And Bid Modifiers. PRESENTATION: Practical Bid Modifier Strategies - Given by Ty Martin, @iCrossing - iCrossing, Senior Director of Search Media Strategy. #SMX #23B

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Practical Bid Modifier Strategies

  1. 1. March 4, 2015 PRACTICAL BID MODIFIER STRATEGIES Ty Martin Sr. Director of Search Strategy iCrossing
  2. 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. 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. 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. 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. 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. 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. 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. 9. searchmarketingexpo.com Ty Martin #SMX #23B Where to Find Hourly Data Daily & Hourly Bidding AdWords > Dimensions Your Search Management Platform OR
  10. 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. 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. 12. searchmarketingexpo.com Ty Martin #SMX #23B Device Bidding Interface Device Bidding Google: Bing:
  13. 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. 14. searchmarketingexpo.com Ty Martin #SMX #23B Recommended RLSA Bidding Strategy: RLSA Bidding Set different bid modifiers per remarketing list
  15. 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. 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. 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. 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. 19. searchmarketingexpo.com Ty Martin #SMX #23B

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