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Day 35 of Adwords Help: Optimizing Bid Adjustments

Everybody knows they should be making adjustments to focus on areas with higher conversions and lessen bids in areas with low conversions.

However, a strategy to analyze your data can help enhance your cost per acquisition.

What determines what I should be setting my bid adjustment as?

Gathering as much data as you can will help you make an educated decision.  Factors such as seasonal business will influence your clicks per device, but as a general rule a minimum of 300 clicks is a good base line that will give you sufficient data to feel confident in your bid adjustments choices.

With a simple formula you can calculate if you should bid more aggressively or if your current bid is costing you money. The bid modifier is essential in providing you with this information.  A negative percent or a negative bid modifier indicates clicks are more expensive than you can afford in order to hit your target.

What happens if your cost per conversion is less than your target CPA?

You can afford to be paying more per click. While it sounds counter intuitive to pay more, a higher bid will put you in a better position and lead to even more clicks. Thus maximizing the clicks value while still keeping your target CPA.

Watch the video below to find out the simple 5 minute process on how to optimize your bid adjustments. Do this once a month for at least devices and geographies, but you can also extend to gender and income levels for even more focused bid adjustments.