1 Comment

  1. Seo step August 19, 2008 @ 1:06 pm

    Hi,

    Your blog is very informative n helpful about Ppc Advertising Services .. thanks…..keep it up.
    http://www.seostep.net.

Pay Per Click Bid Management - Step Three

4. Effective PPC Bid Management, 4.6 PPC Bid Management-Step Three

Effective - Step Three: Filter that generate Conversions but Negative ROI or higher than your target CPA.

If your account is structured keeping your business goals in mind and you have a solid list in the account, you will only have a handful of fitting this profile and for that matter only a handful of converting in your account overall (80-20 rule always). Ask yourself questions:

  • Is the Max. too high?
  • As a result is the Avg. Position too high and therefore generating a lot of junk traffic and bringing down your overall Conversion Rate?
  • What is the CPA or ROI goal and how does it compare to the CPA or ROI of the ?

Based on your business setting, use any formula you wish to use to adjust those bids. I personally tend to use the following formula the most:

(Target CPA/Actual CPA) X Current Max.

Notice I dint provide you with a formula to use if you are chasing an ROI goal. Reason being, using ROI as a an element in a formula can sometimes come up with outliers for bids and therefore I try to shy away from it. If You have an ROI goal, figure out what CPA value will help you achieve that goal and use the formula above to calculate bids. I am open to any suggestions for bid calculation using ROI as a metrics from any of the readers of this blog.

  • It is advised that you base this decision on a large chunk of data - hence the first logic to check if there is at least 2 months worth of data available.
  • Depending on your product/service, only a weeks worth of data might be enough for you to conduct this analysis due to the high volume of Impressions, Clicks, & Cost.
  • Always keep track of your and changes as that can effect conversions too.

This helps identifying that have:

  • High & High Conversion
  • High & Low Conversion
  • Low & Low Conversions
  • Low & High Conversions

Lost Impressions, Clicks, & Conversions:

  • Could be due to Seasonality?
  • Could be due to Increased Competition?
  • Could be due to previous (maybe a was not converting as effectively, or bid was decreased aggressively)?

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@ August 14, 2008

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