AdWords and adCenter Bid Adjustment Strategies

AdWords and adCenter Bid Adjustment Strategies

At some points while optimizing an account you must think slightly outside the box in order to try and maximize your return.  One way of doing this is by utilizing bid adjustments and custom scheduling.  This strategy can give you an option to ad schedule and only run your ads during specific times and adjust your bids during those times by a percentage.  Let’s assume you have an ad group level bid of $1.00.  Using a bid percentage of 120% would give you a new bid of $1.20 during a particular time period, vice versa, a bid percentage of 80% would give you a new bid of $0.80.

Knowing these basics, how can we utilize a bid adjustment strategy based on data and not whim?  The client I will be using has more value per phone, so their goal was to increase phone calls.  For this experiment I will introduce a variable I call Phone Conversion Rate or PCR.  The campaigns we were analyzing have been live for quite some time and have been performing relatively well.  This strategy was basically a test to see if call volume would increase if position increased.


The red bars represent the PCR for each hour a day (military time) for when that particular campaign was live; likewise, the blue line represents the corresponding position.  We now know what times of day are converting the best for us and we can target these areas specifically.  We can also analyze an increase during lower converting times to see if a position change will drive more calls.  More importantly we can use this information to target hours of the day separately.


For each hour of the day we are able to analyze where to increase our bid to be most effective.  Increase by small amounts during lower PCR hours to test a position change and increase by a larger amount during hours where we are getting our higher PCR.  This is a much better strategy than just increasing by a flat amount for all hours.


We were able to increase our call volume by approx 8% while increasing our budget approx 18%.  This should be expected since we are testing higher positions, hence, higher cost per clicks.  This also caused an increase in cost per lead.  In this scenario our client was not able to afford this increase per lead, but this increase will be different for each client and should be analyzed accordingly.

If you would like help analyzing your account or more information on bid adjustment strategies visit Accelerate Online Marketing for a FREE audit or call us at 1-877-676-2010.

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