what marketers need to know about advanced bidding strategies and bid modifiers for sem
DESCRIPTION
From the SMX East 2014 Conference in New York City, NY. SESSION: A Deep Dive Into Bidding Strategies & Bid Modifiers. PRESENTATION: What Marketers Need To Know About Advanced Bidding Strategies and Bid Modifiers for SEM - Given by Jay Stampfl, @3QDigital, Account Director - 3Q Digital. #SMX #23BTRANSCRIPT
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Advanced BiddingJay Stampfl, 3Q Digital
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Jay Stampfl, 3Q Digital #SMX
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Jay Stampfl, 3Q Digital #SMX
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By Jay Stampfl, 3Q Digital #SMX
Bidding
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Jay Stampfl, 3Q Digital #SMX
Good
Bad
…Right?
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Account Structure
By Jay Stampfl, 3Q Digital #SMX
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Jay Stampfl, 3Q Digital #SMX
Query Mapping!
Term Number of Adgroups
bucket hats 19
mitchell and ness bucket hats 11
new era bucket hat 10
mitchell and ness bucket hat 10
zubaz shorts 9
bucket hat 9
mitchell and ness batting practice jersey 8
nfl jerseys 8
uconn basketball shorts 7
snapbacks 7
seattle seahawks jersey 7
personalized nfl jerseys 7
starter jacket 7
nfl jersey 7
seahawks jersey 7
zubaz pants 7
cheap bucket hats 7
Action Item!Make sure that you don’t have queries going to many different KWs!
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Jay Stampfl, 3Q Digital #SMX
Action Item!Check your top terms and KWs to make sure your dynamics are not changing too much… you can always use negatives.
Close variants in Exact and Phrase
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Auction Dynamics
By Jay Stampfl, 3Q Digital #SMX
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Jay Stampfl, 3Q Digital #SMX
Scale
Efficiency
Any account that has both an ROAS and budget goal actually has neither.
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Jay Stampfl, 3Q Digital #SMX
Auction Dynamics – CTR v. CPC
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Jay Stampfl, 3Q Digital #SMX
Idiosyncratic SERPS
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Jay Stampfl, 3Q Digital #SMX
Top versus Side
Date Range 1 Date Range 2
Avg. postion 3.2 3.3
CTR 3.72% 2.05%
Top 45,797 20,172
Other 62,699 97,809
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Jay Stampfl, 3Q Digital #SMX
Action Item!Use Auction Insights to track competitor activity.
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What do we gain?
Jay Stampfl, 3Q Digital
Use the Bucket segment to create an arbitrary
Control Bid
14 % more conversions
4k more cost
Scale vs. Efficiency?
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Jay Stampfl, 3Q Digital #SMX
Action Item!It is almost always better to have more clicks at lower CPC
Limited Budgets are Bad
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By Jay Stampfl, 3Q Digital #SMX
Latency
&Timing
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Conversions and Consumer Behavior
Jay Stampfl, 3Q Digital #SMX
Shallow Heavy
40 % Day 1 difference!
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Revenue Increases with Time
Seasonality and Promotions?
Jay Stampfl, 3Q Digital #SMX
Conversion Time Tag and AOV
Action Item!Know your number.
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Jay Stampfl, 3Q Digital #SMX
Yesterday’s Average Position
Identify trends
30 Day Performance
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By Jay Stampfl, 3Q Digital #SMX
Bidding
Automation and Conversion Optimizer
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Jay Stampfl, 3Q Digital #SMX
Conversion Optimizer
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Jay Stampfl, 3Q Digital #SMX
Gender as a Signal
CPC Conversion Rate ROAS
Female 0.83$ 2.93% 4.59
Male 0.95$ 3.45% 5.16
15.14% 18.02% 12.48%
Add demograph
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Jay Stampfl, 3Q Digital #SMX
“Undetermined” has lower CPCs
CPC Conversion Rate ROAS
18-24 0.77$ 2.49% 4.80
25-34 0.87$ 3.38% 5.36
35-44 1.02$ 3.78% 4.65
45-54 1.02$ 3.51% 5.18
55-64 1.03$ 4.06% 5.50
65 or more 1.03$ 4.33% 6.25
Undetermined 0.79$ 2.76% 4.83
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Jay Stampfl, 3Q Digital #SMX
Rules and Custom buckets
http://3qdigital.com/featured/take-care-of-bidness-with-bidding-set-up-and-adjustment-tips/
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By Jay Stampfl, 3Q Digital #SMX
BiddingData Aggregation
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Jay Stampfl, 3Q Digital #SMX
Ad Groups, Long Date Range
Ad Groups, Short Date Range
Low Volume KWs, Long Date Range
High Volume KWs, Short Date RangeHigher frequency, Larger changes
Lower frequency, Smaller changes
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Jay Stampfl, 3Q Digital #SMX
Action Item!Stay aware of all of your layers of
bid modifiers
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By Jay Stampfl, 3Q Digital #SMX
BiddingGross Profit and Last Click
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Judging Scale - Gross Profit
$162,416 v. $214,603
$48,725 v. $64,381
$29,251 v. $34,408
+$5,158
Higher Bids Work!
Jay Stampfl, 3Q Digital
Revenue
After Product Margins
True Profit
Bid Value over Reg. Action Item!Clean cost/benefit analysis is the core of bid strategy.
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Jay Stampfl, 3Q Digital #SMX
In other words….Max CPA = Incremental CPA
Cost
Number of Conversions
Action Item!Find the point where each incremental cost per conversion equals the Max CPA. AdWords Experiments is an easy way to plot that out.
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Jay Stampfl, 3Q Digital #SMX
Find what efficiency/scale maximizes profit.
0
5
10
15
20
25
30
35
40
45
0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 200,000
Profit vs. ROAS
Gross Profit Maximization
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Jay Stampfl, 3Q Digital #SMX
Identify the High/Low Assists
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Jay Stampfl, 3Q Digital #SMX
Clean Query Mapping
Understand your Click-to-Conversion time
Monitor your SERPs and Track Competitors
Play around with CO
Break out Account by Buckets
Use Modifiers, but be careful
Understand true cost/benefit of Bids
Label upper-funnel Campaigns/KWs