how to define and reach your bidding goals by lauryan feijen
DESCRIPTION
From the SMX East 2014 Conference in New York City, NY. SESSION: A Deep Dive Into Bidding Strategies & Bid Modifiers. PRESENTATION: How To Define & Reach Your Bidding Goals - Given by Lauryan Feijin, @LauryanF, Online Advertising Stratigest - iProspect. #SMX #23BTRANSCRIPT
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1 @LauryanF | A Deep Dive Into Bidding Strategies & Bid Modifiers | #SMX #23B
HOW TO DEFINE & REACH YOUR BIDDING GOALS
LAURYAN FEIJEN
Driving Digital Performance
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2 @LauryanF | A Deep Dive Into Bidding Strategies & Bid Modifiers | #SMX #23B
» PPC Since 2009 » Responsible for Quality & Learning » Excel nerd » Musiclover & musician » Husband & dad
ABOUT ME
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3 @LauryanF | A Deep Dive Into Bidding Strategies & Bid Modifiers | #SMX #23B
1 brand
12
service lines
69
offices
48
markets
2,550
staff
75+
languages
#1
agency partner
Worlds largest performance
agency
Driving Digital Performance
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4 @LauryanF | A Deep Dive Into Bidding Strategies & Bid Modifiers | #SMX #23B
» DEFINE OUR TARGET
AGENDA: HOW CAN WE MANAGE OUR BIDS
» REACHING OUR TARGET
» OVERCOME OBSTACLES
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5 @LauryanF | A Deep Dive Into Bidding Strategies & Bid Modifiers | #SMX #23B
DEFINE OUR TARGET
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6 @LauryanF | A Deep Dive Into Bidding Strategies & Bid Modifiers | #SMX #23B
DEFINE OUR TARGET
» CPA vs ROAS bit.ly/SMXLink1
» Volume vs Efficiency bit.ly/SMXLink2
» Branded & Non-‐Brand bit.ly/SMXLink3
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7 @LauryanF | A Deep Dive Into Bidding Strategies & Bid Modifiers | #SMX #23B
REACHING OUR TARGET
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8 @LauryanF | A Deep Dive Into Bidding Strategies & Bid Modifiers | #SMX #23B
MANUAL WITH ADWORDS INTERFACE
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9 @LauryanF | A Deep Dive Into Bidding Strategies & Bid Modifiers | #SMX #23B
MANUAL WITH ADWORDS INTERFACE
Like hiking: » See many details along the way » Exhausting & time consuming
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10 @LauryanF | A Deep Dive Into Bidding Strategies & Bid Modifiers | #SMX #23B
MANUAL WITH EXCEL
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11 @LauryanF | A Deep Dive Into Bidding Strategies & Bid Modifiers | #SMX #23B
MANUAL WITH EXCEL
Like horseriding: » Faster than walking » Might miss a few details » The horse (Excel in this metaphore) delivers a big part of the
energy
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12 @LauryanF | A Deep Dive Into Bidding Strategies & Bid Modifiers | #SMX #23B
» CPA BIDDING
MANUAL WITH EXCEL
» ROAS BIDDING
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13 @LauryanF | A Deep Dive Into Bidding Strategies & Bid Modifiers | #SMX #23B
MANUAL WITH EXCEL
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14 @LauryanF | A Deep Dive Into Bidding Strategies & Bid Modifiers | #SMX #23B
USING SCRIPTS AND AUTOMATED RULES
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15 @LauryanF | A Deep Dive Into Bidding Strategies & Bid Modifiers | #SMX #23B
USING SCRIPTS AND AUTOMATED RULES
Like a car » Go even faster than a horse » You decide which gear, speed and directions
» Move really fast » Risk missing details » Not everybody understands engines (or rules & scripts)
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16 @LauryanF | A Deep Dive Into Bidding Strategies & Bid Modifiers | #SMX #23B
USING SCRIPTS AND AUTOMATED RULES
» Scripts No ROAS compatability » Automated rules Only simple bid management is possible (up if < X, down if > X etc) » What goes up must come down (always have a counter measure in place)
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17 @LauryanF | A Deep Dive Into Bidding Strategies & Bid Modifiers | #SMX #23B
GOOGLE FLEXIBLE BID STRATEGIES
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18 @LauryanF | A Deep Dive Into Bidding Strategies & Bid Modifiers | #SMX #23B
GOOGLE FLEXIBLE BID STRATEGIES
Like a taxi » You still get to decide speed and direction but not how to
reach and maintain that speed. » Move really fast. » Risk missing details. » Even less insights in how this works. » You have to trust the cab driver!
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19 @LauryanF | A Deep Dive Into Bidding Strategies & Bid Modifiers | #SMX #23B
GOOGLE FLEXIBLE BID STRATEGIES
Mixed results Advise: only use these in campaigns with higher conversion volumes (more than the 15 conversions in 30 days limit is advised)
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20 @LauryanF | A Deep Dive Into Bidding Strategies & Bid Modifiers | #SMX #23B
USING 3RD PARTY PLATFORMS
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21 @LauryanF | A Deep Dive Into Bidding Strategies & Bid Modifiers | #SMX #23B
USING 3RD PARTY PLATFORMS
Like a self driving car » Just tell where you want to go (target) and the car (platform)
will get you there.
» More advanced, but also more unknown factors
» 3rd party, which means they’re not always compatible with all new features
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22 @LauryanF | A Deep Dive Into Bidding Strategies & Bid Modifiers | #SMX #23B
WHICH TO CHOOSE
Manual in AdWords interface Manual with Excel
Automated rules & scripts
Flexible bid rules
3rd party software
» Small campaigns » Medium sized campaigns » Campaigns with many
conversions » Campaigns with many
conversions » Accounts where budget
and/or volume justify spending on outsourcing this
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23 @LauryanF | A Deep Dive Into Bidding Strategies & Bid Modifiers | #SMX #23B
OVERCOME OBSTACLES
MANUAL/SCRIPT OPTIONS
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24 @LauryanF | A Deep Dive Into Bidding Strategies & Bid Modifiers | #SMX #23B
OVERCOME OBSTACLES
» KW already in top position » New bid exceeds top-‐of-‐page bid estimates » New bid less than first-‐page bid estimates » Keyword has insufficient data
POSSIBLE OBSTACLES
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25 @LauryanF | A Deep Dive Into Bidding Strategies & Bid Modifiers | #SMX #23B
OVERCOME OBSTACLES
Why should we reduce overbidding the top-‐of-‐page bid estimate? » If we (and our competitors) don’t the estimate rapidly rises » Prevent bidding (and paying) more than necessary
TOP-‐OF-‐PAGE BID ESTIMATES
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26 @LauryanF | A Deep Dive Into Bidding Strategies & Bid Modifiers | #SMX #23B
OVERCOME OBSTACLES
» Workaround Cut off bids X% over the ToP bid estimate. » Example
TOP-‐OF-‐PAGE BID ESTIMATES
20% Cut off
$ 1.50 New bid
$ 1.00 ToP est.
$ 1.20 New bid
(ToP x 120%)
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27 @LauryanF | A Deep Dive Into Bidding Strategies & Bid Modifiers | #SMX #23B
OVERCOME OBSTACLES
If we bid less than the first-‐page bid estimate we risk not being displayed at all. Keep in mind FP bid estimates aren’t always accurate.
FIRST-‐PAGE BID ESTIMATES
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28 @LauryanF | A Deep Dive Into Bidding Strategies & Bid Modifiers | #SMX #23B
OVERCOME OBSTACLES
How to handle » Check Quality Score » Other reason for keyword to be online » Consider pausing the keyword
FIRST-‐PAGE BID ESTIMATES
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29 @LauryanF | A Deep Dive Into Bidding Strategies & Bid Modifiers | #SMX #23B
OVERCOME OBSTACLES
» Fact: not all keywords in your account convert » How do we bid for keywords with insufficient
conversion data? » The question becomes: how probable is it the
keyword will convert in the future
KEYWORDS WITH INSUFFICIENT DATA
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30 @LauryanF | A Deep Dive Into Bidding Strategies & Bid Modifiers | #SMX #23B
OVERCOME OBSTACLES
Probability of keyword X converting in future So I asked the bigger platforms how they tackle this challenge
KEYWORDS WITH INSUFFICIENT DATA
“To address keywords with low data, Kenshoo's bid algos cluster keywords with similar attributes to make informed predictions.”
“We look at how similar keywords are performing then compare it to the group then the folder in order to predict future performance.”
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31 @LauryanF | A Deep Dive Into Bidding Strategies & Bid Modifiers | #SMX #23B
OVERCOME OBSTACLES
Probability of keyword X converting in future Similary in keywords can also mean looking at similar interest: Coming from the Netherlands queries like ‘ticket to barcelona’ and ‘ticket to amsterdam’ probably have different intentions. From the US these queries share a similar interest: intercontinental flights.
KEYWORDS WITH INSUFFICIENT DATA
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32 @LauryanF | A Deep Dive Into Bidding Strategies & Bid Modifiers | #SMX #23B
OVERCOME OBSTACLES
Probability of keyword X converting in future Using AdGroup, Campaign or Account averages By using aggregated data from higher levels we are at least able to use this data in our calculations.
KEYWORDS WITH INSUFFICIENT DATA
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33 @LauryanF | A Deep Dive Into Bidding Strategies & Bid Modifiers | #SMX #23B
OVERCOME OBSTACLES
Probability of keyword X converting in future Using AdGroup, Campaign or Account averages Tip: For each level up decrease the historical performance used in the calculations by a small % to take some of risks of aggregating data into account.
KEYWORDS WITH INSUFFICIENT DATA
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34 @LauryanF | A Deep Dive Into Bidding Strategies & Bid Modifiers | #SMX #23B
OVERCOME OBSTACLES
Probability of keyword X converting in future » Bayesian rating system
» Evens out keywords with unrealistic conversion rates (for example 100% with 1 click & 1 conversion)
KEYWORDS WITH INSUFFICIENT DATA
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35 @LauryanF | A Deep Dive Into Bidding Strategies & Bid Modifiers | #SMX #23B
OVERCOME OBSTACLES
Probability of keyword X converting in future
KEYWORDS WITH INSUFFICIENT DATA
Example Ex. 1 Ex. 2 Ex. 3 Ex. 4 Ex. 5
Avg clicks 1.250 1.250 1.250 1.250 1.250
Avg conv rate 1.50% 1.50% 1.50% 1.50% 1.50%
Kw clicks 500 1.000 2.000 1 500
Kw conv rate 0.50% 0.50% 0.50% 100.00% 0.00%
Result 1.21% 1.06% 0.88% 1.58% 1.07%
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36 @LauryanF | A Deep Dive Into Bidding Strategies & Bid Modifiers | #SMX #23B
OVERCOME OBSTACLES
Probability of keyword X converting in future
KEYWORDS WITH INSUFFICIENT DATA
Example Ex. 1 Ex. 2 Ex. 3 Ex. 4 Ex. 5
Avg clicks 1.250 1.250 1.250 1.250 1.250
Avg conv rate 1.50% 1.50% 1.50% 1.50% 1.50%
Kw clicks 500 1.000 2.000 1 500
Kw conv rate 0.50% 0.50% 0.50% 100.00% 0.00%
Result 1.21% 1.06% 0.88% 1.58% 1.07%
Use resulting number in your calculations
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37 @LauryanF | A Deep Dive Into Bidding Strategies & Bid Modifiers | #SMX #23B
LAURYAN FEIJEN
@LauryanF
LinkedIn.com/LauryanFeijen
Excel example bit.ly/SMXExcelBidding