Bing recently updated they way incremental bids are calculated to mimic AdWords enhanced campaigns to allow for easy importing into Bing. The update (which started in July) will use multiplicative percentages, instead of adding multiple bid adjustments together as the platform did previously:

Bing_Alert. Image

“Beginning in July 2013, we are updating the way we calculate multiple incremental bids. As we go through this transition over several weeks, the bids in your account might be calculated using the old method, the updated method, or a combination of both. After the transition is complete, all bids will be calculated using the new method. See below for more details.” Bing

Old Method: Additive Bids

If a particular search user matches multiple targeting criteria, the adjustments are combined using addition. For example, let’s say you have set up the following bids and targeting:

  • Keyword bid = $1.00
  • Target location = Chicago, Incremental bid = Bid + 20%
  • Target days = Saturday, Incremental bid = Bid + 10%

Given the above data, the potential maximum amount for your bid is as follows:

Bing-IB_Old Method

New Method: Multiplicative Bids

In order to align with industry standards, our new method will combine multiple bid adjustments using multiplication instead of addition. Let’s use the same example:

  • Keyword bid = $1.00
  • Target location = Chicago, Incremental bid = Bid * 20%
  • Target days = Saturday, Incremental bid = Bid * 10%

Bing-IB_New Method

How to Use Bing Incremental Bids

Long before enhanced campaigns were even a twinkle in AdWords’ eye, Bing has been blazing the trails of incremental bid targeting and I’m embarrassed to say – I haven’t used it, YET (*hangs head in shame*). Well those days are over, my friends! With the recent updates in Bing and enhanced campaigns rolling out, incremental bidding is going to continue to grow in importance and I will be jumping on the bandwagon. Plus, there are many cool ways to target customers with incremental bids.

For example: you could choose to incrementally increase your bids on Women, who are between the ages of 25-34, who live in Chicago (x 1.20), on Saturdays (x 1.10).    

How to Set-Up Incremental Bids:

You can find them either in your Bing Ads campaign or ad group settings, under “advanced targeting options”.  There you’ll find the criteria specific to what you want to bid more or less on. It’s super easy! See below.

Bing_Targeting Options

Things to keep in Mind When Using Incremental Bids:

  • New multiplicative bids could potentially see higher maximum bids for multiple bid adjustments vs. using the additive method
  • Incremental bids are rounded down to the nearest cent.
  • When you place an incremental bid for geographical location, day of the week, or time of day, you can use targeting to choose whether to display your ads only to target customers or to all customers. When you place an incremental bid for age or gender, your ads are displayed to all customers, but your incremental bid can increase the likelihood of your ad being displayed to the specified gender and age segments. In all cases, you pay the incremental bid only when one or more of the target criterion is met and your ad is clicked.

If you are already a Bing incremental bidding trailblazer, keep your eyes peeled in your account for the new updates and let us know how it has worked for you!  I plan to give Bing incremental bidding a whirl and will report back my findings with all of you fine folks in the coming weeks.