Navigating the maze of google bid adjustment v2

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Presented at Biddable World 2014:
Not long ago Google has revolutionalised the way we bid on their platform – everything is now in relation to the desktop/tablet bid. You can set bid adjustment for mobile device, a different time of day as well as different locations. Should you set the adjustments? Which type of adjustment should you use? By how much? Wing will share a few best practices with you at this session.

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  • Can you define the radius?Geographical context? Lake district vs. LondonAbility to traverse the distanceLocations: Set a bid adjustment for specific postcodes, cities and other geographic areas. You can also use location extension targeting to set different bids for customers who are located near to your business.
  • Double check whether they are still available on adwords
  • Individual adjustment seems like a good idea, when put together…
  • Applying across targeting dimensions
  • Navigating the maze of google bid adjustment v2

    1. 1. Navigating the Maze of Google Bid Adjustment Dr Wing Yee Lee | Senior Manager, Business Analytics © 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
    2. 2. Show of Hands 1. Enhanced Campaigns 2. Mobile 3. Google Recommended Bid Adjustment 4. Location 5. Time of Day www.papyrusonline.com © 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 2
    3. 3. Before and After Before: 3 different bids After: 1 bid n multiplier © 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 80p 50p 20p 3 × (1+ -75% = 80p 20p )
    4. 4. The Things People Say To you… You should raise your location bid adjustment on the keywords with high conversion rates. Increase bids when the user is within a certain radius of the store. www.grist.org © 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 4
    5. 5. You should raise your location bid adjustment on the keywords with high conversion rates. Location Avg. Position Conversion Rate A 1.2 34.37% B 1.2 34.21% C 1.3 31.22% D 1.2 28.74% © 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 5
    6. 6. Regional Conversion Rate and Avg. Position 40% Conversion Rate 35% 30% 25% 20% 15% 10% 5% 0% 1 1.5 2 2.5 Avg. Position © 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 6 3 3.5
    7. 7. Increase bids when the user is within a certain radius of the store. Do you have evidence to support this may work? Can you track? How to decide on the radius? © 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 7
    8. 8. Google Recommended Bid Adjustment © 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 8
    9. 9. Computer/Tablet ROI vs. Mobile ROI © 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 9
    10. 10. Bid Adjustment Calculation Method: RPC-based Desktop / Tablet Mobile Ratio £20 £2 £10 £1 ? 2:1 2:1 RPC Bid (Max CPC) Mobile Bid Adjustment = ? RPC Bid (Max CPC) Average CPC ROI Desktop / Tablet £20 £2 £1.8 £11.11 © 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. Answer = -50% Mobile £10 £1 2:1 2:1 £0.50 £20 10 Ratio 3.6:1 0.6:1
    11. 11. Bid Adjustment Calculation Method: ROI-based ROI Ratio = 0.6:1 Assuming the same bidCPC ratio on mobile Answer = -10% Mobile Bid Adjustment = ? RPC Bid (Max CPC) Average CPC ROI Desktop / Tablet £20 £2 £1.8 Mobile Ratio £10 £1.8 £0.9 2:1 1.11:1 2:1 £11.11 £11.11 1:1 © 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 11
    12. 12. Beware of CPC Fluctuations © 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 12
    13. 13. RPC-based vs. ROI-based Method RPC-based Benefits More stable Drawbacks Does not account for Bid-toCPC ratio between devices ROI-based Closer to optimal Regular re-calculations required to take into account of CPC fluctuations © 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 13
    14. 14. Use Weighted Ratios Desktop/Tablet Mobile Bid Adj. RPC Clicks Revenue RPC Clicks Revenue Keyword A £1 100 £100 £1 100 £100 0% Keyword B £10 10 £100 £1 10 £10 -90% Total £1.82 110 £200 £1 110 £110 -45% Example credit to Kohki Yamaguchi BidAdjustm ent RPC Kw1Mobile RPC Kw1DesktopTablet ClicksKw1 ClicksKw1 ClicksKw1 ClicksKw 2 ... Mobile Bid Adjustment = ? © 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. RPC Kw 2 Mobile RPC Kw 2 DesktopTablet 14 Answer = -8% ...
    15. 15. Day of Week Bid Adjustment © 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 15
    16. 16. Time Bid Adjustment © 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 16
    17. 17. Time of Day Bid Adjustment © 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 17
    18. 18. A Convoluted Bid  Say you want to make brownies… Source: makemelaugh.com 400g caster sugar 225g butter, melted 60g cocoa powder 1 tsp vanilla extract 4 eggs 225g plain flour ½ tsp baking powder ½ tsp salt 60g walnut halves 450g 40g 5 Source: Pinterest – Stefanie Angus © 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 18
    19. 19. A Convoluted Bid 80p ×(1+ = © 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. -75% )×(1+ -20% )×(1+ +50% ) 20p 19 = 16p = 24p
    20. 20. How to Navigate the Maze of Google Bid Adjustment  Taking advice with a pinch of salt (including mine!)  Applying a few mathematical tools  Being aware of making convoluted bids © 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 20
    21. 21. © 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
    22. 22. © 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
    23. 23. © 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 23
    24. 24. © 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 24
    25. 25. © 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 25

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