what marketers need to know about advanced bidding strategies and bid modifiers for sem

Advanced BiddingJay Stampfl, 3Q Digital

Jay Stampfl, 3Q Digital #SMX

By Jay Stampfl, 3Q Digital #SMX

Bidding


Good

Bad

…Right?

Account Structure



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!


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

Auction Dynamics



Scale

Efficiency

Any account that has both an ROAS and budget goal actually has neither.


Auction Dynamics – CTR v. CPC


Idiosyncratic SERPS


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


Action Item!Use Auction Insights to track competitor activity.

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?


Action Item!It is almost always better to have more clicks at lower CPC

Limited Budgets are Bad


Latency

&Timing

Conversions and Consumer Behavior


Shallow Heavy

40 % Day 1 difference!

Revenue Increases with Time

Seasonality and Promotions?


Conversion Time Tag and AOV

Action Item!Know your number.


Yesterday’s Average Position

Identify trends

30 Day Performance


Bidding

Automation and Conversion Optimizer


Conversion Optimizer


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


“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


Rules and Custom buckets

http://3qdigital.com/featured/take-care-of-bidness-with-bidding-set-up-and-adjustment-tips/


BiddingData Aggregation


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


Action Item!Stay aware of all of your layers of

bid modifiers


BiddingGross Profit and Last Click

Judging Scale - Gross Profit

$162,416 v. $214,603

$48,725 v. $64,381

$29,251 v. $34,408

+$5,158

Higher Bids Work!


Revenue

After Product Margins

True Profit

Bid Value over Reg. Action Item!Clean cost/benefit analysis is the core of bid strategy.


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.


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


Identify the High/Low Assists


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

Thank You!

Jay Stampfl

[email protected]


what marketers need to know about advanced bidding strategies and bid modifiers for sem

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