Pay-per-click (PPC) advertising is one of the quickest ways to drive traffic and leads to your website. However, it can also become an expensive marketing channel if not optimized properly. Setting the right bids is crucial for getting the most out of your PPC campaigns. Here are some of the most effective techniques for optimizing your PPC bids.
Set Specific Bid Strategies
One of the first things you need to do is set specific bid strategies for each ad group in your PPC campaigns. The main bid strategies include:
- Manual bidding – You set an exact bid amount for keywords. This requires close monitoring but allows for precision targeting, Ideal for branding campaigns focused on visibility rather than conversions.
- Enhanced CPC bidding – Google automatically sets bids to optimize for conversions while staying close to your target bid. One of the most effective bidding strategies according to WordStream. Great for driving conversions across multiple keywords.
- Target CPA bidding – You define a target cost-per-acquisition and the system automatically adjusts bids to hit that goal. Great for lead generation campaigns according to Microsoft Advertising. Allows you to maximize conversions within budget.
- Target ROAS bidding – Similar to Target CPA but optimized for return on ad spend rather than cost per acquisition. Recommended for ecommerce PPC campaigns to maximize revenue within defined ROAS goals.
Leverage Bid Adjustments
Once you set your main bid strategy, leverage bid adjustments to further optimize performance. Some valuable bid adjustments include:
- Device bid adjustments – Increase bids for devices that convert better like desktops and lower for ones with lower conversion rates like mobile. This allows you to maximize conversions on high-intent devices.
- Location bid adjustments – Adjust bids up or down for locations that over or underperform. Boost engagement from your best customer geographies.
- Time of day bid adjustments – Raise bids during peak hours when conversion rates are higher. Capture users during high-intent periods.
- Audience bid adjustments – Target users who are more likely to convert by increasing bids for your key audience segments like past purchasers.
- Page Feeds bid adjustments – Set higher bids for pages generating more conversions like product or pricing pages.
Analyze Search Query Performance
Dig into your search query reports frequently to understand which queries drive conversions and which don’t. Lower bids on poor-performing queries and increase bids on high converting queries. Also, optimize ad copy and landing pages for your winning keywords. This ensures your budget goes towards the most relevant search queries for your business.
Enable Automated Bidding in Google Ads
Leverage Google’s automated bidding strategies like Target CPA and Maximize Conversions to optimize bids automatically based on your conversion goals. They use advanced machine learning and can help drive more conversions at lower costs. Particularly useful for large, complex campaigns.
Use Accelerated Delivery for Faster Optimization
Enabled accelerated delivery in your campaigns. As per Google, this uses “historical conversion data to deliver your ads more quickly to customers most likely to convert”. Faster optimization can lead to lower costs and better results over the campaign lifetime.
Set Specific Budgets
According to WordStream, setting specific daily budgets instead of relying on monthly budgets leads to more controlled spends and optimization. Choose daily budgets wisely based on factors like target CPA, conversion rates, and campaign capacity. Gives you greater control over campaign spend.
Make Data-Driven Bid Changes
As per Microsoft Advertising, any bid changes or optimizations you make should be backed by campaign data. Review performance data frequently and make small incremental bid changes to get the desired results over time. Prevents over-optimization and improves ROI.
Use Bid Simulations
Both Google and Microsoft Advertising offer bid simulators to test the impact of changing your bids without actually changing them. Leverage these free tools to experiment with different bid strategies before deploying them live. Allows you to try different optimization tactics risk-free.
Regularly Review Ad Performance
Frequently check ad performance reports to identify low performing ads that need improvement or removal. Refresh ad copy and test new ad variants to maximize impact from the most relevant ads. Keeps your ad groups optimized over the campaign lifetime.
Monitor Competitor Bids
Keep an eye on competitor bid amounts and positioning for common keywords using auction insights tools. It allows you to adjust your bids to stay competitive in vital areas. But avoid getting into bidding wars that drive up costs.
By following these PPC bid optimization best practices, you can maximize the impact of your budgets and get better performance from your search campaigns. Test different techniques and see what works for your PPC goals. Consistent optimization and refinement are key to staying ahead.