Navigating the maze of google bid adjustment v2
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Transcript of Navigating the maze of google bid adjustment v2
© 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
Dr Wing Yee Lee | Senior Manager, Business AnalyticsNavigating the Maze of Google Bid Adjustment
© 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
Show of Hands
2
www.papyrusonline.com
1. Enhanced Campaigns
2. Mobile
3. Google Recommended Bid Adjustment
4. Location
5. Time of Day
© 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
Before and After
3
50p 80p 20pBefore:3 different bids
After:1 bidn multiplier
× (1+=
80p
20p
-75% )
© 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
The Things People Say To you…
4
www.grist.org
You should raise your location bid adjustment on the keywords with high
conversion rates.
Increase bids when the user is within a certain radius of the store.
© 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 5
Location Avg. Position Conversion Rate
A 1.2 34.37%
B 1.2 34.21%
C 1.3 31.22%
D 1.2 28.74%
You should raise your location bid adjustment on the keywords with high
conversion rates.
© 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 6
1 1.5 2 2.5 3 3.50%
5%
10%
15%
20%
25%
30%
35%
40%
Regional Conversion Rate and Avg. Po-sition
Avg. Position
Con
vers
ion
Rate
© 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 7
Increase bids when the user is within a certain radius of the store.
Do you have evidence to support this may work?
Can you track?
How to decide on the radius?
© 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
Google Recommended Bid Adjustment
8
© 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
Computer/Tablet ROI vs. Mobile ROI
9
© 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
Bid Adjustment Calculation Method: RPC-based
Desktop / Tablet
Mobile Ratio
RPC £20 £10 2:1
Bid (Max CPC) £2 £1 2:1
Average CPC £1.8 £0.50 3.6:1
ROI £11.11 £20 0.6:1
10
Desktop / Tablet
Mobile Ratio
RPC £20 £10 2:1
Bid (Max CPC) £2 ? 2:1
Mobile Bid Adjustment = ?
Answer = -50%
£1
© 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
Bid Adjustment Calculation Method: ROI-based
11
Desktop / Tablet
Mobile Ratio
RPC £20 £10 2:1
Bid (Max CPC) £2 £1.8 1.11:1
Average CPC £1.8 £0.9 2:1
ROI £11.11 £11.11 1:1
ROI Ratio = 0.6:1
Assuming the same bid-CPC ratio on mobile
Mobile Bid Adjustment = ?
Answer = -10%
© 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
Beware of CPC Fluctuations
12
© 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
RPC-based vs. ROI-based
Method Benefits Drawbacks
RPC-based More stable Does not account for Bid-to-CPC ratio between devices
ROI-based Closer to optimal
Regular re-calculations required to take into account of CPC fluctuations
13
© 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
Use Weighted Ratios
Desktop/Tablet Mobile BidAdj.
RPC Clicks Revenue RPC Clicks Revenue
Keyword A
£1 100 £100 £1 100 £100 0%
Keyword B
£10 10 £100 £1 10 £10 -90%
Total £1.82
110 £200 £1 110 £110 -45%
14
Example credit to Kohki Yamaguchi
...
...
21
12
21
1
1
KwKw
KwletDesktopTabKw
MobileKwKw
letDesktopTabKw
MobileKw
ClicksClicks
ClicksRPCRPC
ClicksRPCRPC
entBidAdjustm
Mobile Bid Adjustment = ?
Answer = -8%
© 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
Day of Week Bid Adjustment
15
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Time Bid Adjustment
16
© 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
Time of Day Bid Adjustment
17
© 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
A Convoluted Bid
18
Say you want to make brownies…
400g caster sugar225g butter, melted60g cocoa powder1 tsp vanilla extract4 eggs225g plain flour½ tsp baking powder½ tsp salt60g walnut halves
450g
40g
5
Source: Pinterest – Stefanie Angus
Source: makemelaugh.com
© 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
A Convoluted Bid
19
×(1+=
80p
20p
-75%
= 16p
-20%
= 24p
+50%)×(1+
)×(1+
)
© 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
How to Navigate the Maze of Google Bid Adjustment
Taking advice with a pinch of salt
(including mine!)
Applying a few mathematical tools
Being aware of making convoluted bids
20
© 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
© 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
© 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 23
© 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 24
© 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 25