Watch Out for Runaway Bids
Two weeks ago I had an alarming discovery in an account. Based on the geo-targets, day-parting and device based bid multipliers I had turned 300,000 keywords in to 7.4 million UNIQUE bids. The reason, as many in the PPC world know by now, is the multiplied affect of bid multipliers.
The math is pretty straight forward. You take the number of bid multipliers for location multiply that by the number of mulipliers by schedule (day-part) and then you multiply the result from that by the devices (if you are using mobile multipliers this number will always be 2, if you are not then it will just be 1).
So that’s: (location multiplier) x (schedule multiplier) x (devices) = total bid multiplier
Here’s a simple illustration of an account with two locations, two ad schedules and bidding down for mobile:
This chart represents one keyword with a starting bid of $1.50. You can see that it turns into 8 unique bids (on the far right) with only one being the original bid. I see two ways to combat this:
1. Keep locations in separate campaigns still if you are going to use the multipliers.
This is the opposite of Google’s advice but location multipliers are likely to be the most varied and thus create the most number of unique, hard to control actual bids.
2. Use a chart like above to see what your total multipliers would be and for any with a range greater than 30%, put them in a new campaign.
To do this, add the columns I have listed above in the chart (Original Bid, Location, Location Multiplier, etc.) to a spreadsheet. Then open the settings tab in one individual campaign and input your multipliers. Currently this is a manual process but I am hopeful that Google will allow a download feature soon.
A quick note, although in AdWords a bid of 100% is actually bidding up by 100% (so doubling the bid) for this sheet you want to use 100% for setting it at 100% of the original bid and then use number like 1.10 for a 10% increase and .90 for a 10% decrease.
Once you have the data in there do the formula (Location multiplier cell) x (schedule multiplier cell) x (device multipliers cell) in the TTL Multiplier column That will give you the Total Multiplier percentage, or the actual change in the original bid. Then in the final column multiple that TTL Multiplier by the far left cell, which is the original bid. That will give you your new bid.
Once you have that you’ll want to find the range of your total multiplier. For that you take the highest percent increase and subtract the largest percent decrease. Using the chart above, the highest increase is 110% and the lowest is 76%. That equals a range of 34. So in this case I would want to consider taking the highest or lowest of these and put it in it’s own campaign.
The reason I do this is that it is hard to make sure you show in the position you want, at a CPC you want when the bid for one keyword could be 30% higher or lower depending on your multipliers. There is just too much variance there for my liking and control freak nature.
So be careful! Using the new bid multiplier in Google AdWords is a powerful tool but not considering all the variations of an original bid could lead to cutting out volume or bidding substantially higher than is profitable to do so.
Get Your Brand in Front of Dedicated PPC Pros!
We're headed to London to join nearly 300 of our best PPC friends. And we still have a limited number of opportunities for your brand to join us!
The Top Ten Tips For Effective Dayparting
Determining your need for hour of day modifiers can provide extremely competitive returns based on time invested in implementing.
A bi-weekly newsletter packed full of resources and strategies that will help make you a better PPC expert.
Hanapin Marketing | The PPC Agency of Experts Behind PPC Hero
Should You Be Creating Device Specific Campaigns?
Creating new device specific campaigns is a lot of work and can potentially overcrowd your account. You need to determine if this tactic is right for you.
9 Hero Conf London Advanced Sessions You Can't Miss
If you'd like some more details (and we've got plenty of details), how about a rundown of the deepest, most actionable sessions you'll see. These 9 sessions are designed for the expert-level PPC professional.
Why Your PPC Account Isn’t Living Up To Its Potential
I will review common themes that I see in either prospective clients, new clients, or accounts that are red that aren't living up to their potential.
[New Webinar!] 6 Steps To An Advanced Competitor Analysis For Digital Marke...
In this new live webinar, Hanapin’s Jacob Fairclough and SEMrush’s Paul Klebanov will direct you through the process of analyzing your own account, comparing it to your competition, and taking the steps to put your brand above the rest.
5 Psychological Principles You Should Be Using In Your Marketing
I propose that knowing what your audience is thinking or even the steps in their thought process is even more beneficial than simply knowing who they are.
Add It To The List - Structured Snippets Now Available In Bing
Another item for the list of new features in Bing - Structured Snippets are now available to all U.S. advertisers, with international support already being rolled out.
Do You Want A Free PPC Hero T-Shirt?
We're conducting a brief 2-minute survey to get your thoughts and opinions. By taking the survey, you'll get entered to win a certified PPC Hero shirt! Fill out the survey by Friday, September 23rd.
4 Tips To Survive An Account Manager Change
Have you ever received a call or email from your agency that you will be getting a new account manager? The thought could be frightening, especially if you LOVE your current AM. After you take a deep breath and realize life will go on, keep...
Build Your PPC Network, One Pro at a Time!
Do you ever feel that the people who understand your role best live mostly on Twitter? Is it sometimes difficult to find those few individuals you know you can count on for the best PPC advice? We’ve got the solution for your paid search woes.
Balancing Volume, Competition, And Intent To Find The Right Keyword
Although it isn’t going to bring results as quickly as a PPC campaign (and you can even use these methods for PPC), you can’t go wrong with a good old organic traffic campaign running alongside your ads.