We covered the basics of PPC bid management in part one, and briefly reviewed some of the available software tools. Thanks to those who posted additional tools in the comment section. Because there are so many tools, it's good to get opinions from those who use them.
Now let's review some differences between manual and automated systems and bidding strategies.
Manual Can Be the Right Approach
If you're spending less than $5,000 per month, then using the search engines' bid management system may be all you need. Did you know that approximately 65 percent of Google advertisers spend less than $5,000 per month?
The point is that you probably don't have enough data for an automated system to make a significant difference. Automated tools do better when there's a larger dataset to work with.
Another benefit of an automated system: it provides rapid responses to fluctuations in keyword value. Again, if your data set is small, this isn't a big issue.
Rules-Based Bidding
Rules-based bidding is the process of setting up special rules to manage the bidding process. The advantage here is that if the conditions are true, then the bids are adjusted automatically.
For example, let's say for a set of keywords you want to bid to position two if the bid is less than $3. If it's more than $3, then drop it down to position seven. In this example, the system manages the bids based on a hunch rather than actual data.
Predictive Modeling
Another way to approach bid management is through predictive modeling. In this case, you need to identify the value of the traffic you might get from your ads, and then set your bids to a fraction of the value you're willing to spend on your marketing efforts.
This requires analyzing past data you've collected, and a keen eye. You'll also need to make observations on events that might impact the variables.
For instance, let's say that historically you've enjoyed increased sales during Memorial Day weekend. You know this holiday will impact the variables. In this case, you can increase your bids by X percent during the weekend and then lower them to normal afterward.
Other General PPC Bidding Strategies
Your bid strategy needs to be different for each search engine. Each search engine has its own system that requires different approaches.
A common strategy is bidding for the top keyword or ad position. You need to be careful with this strategy, because the outcome could be very costly if not done correctly.
Searchers have a tendency to do a couple of searches and click on a couple of ads until they find what they want. A good strategy is to start with a bid position around five, analyze the results, and then gradually work it up to the desired position.
Human and Computer Balance
Whether you use an automated or manual system, it really takes a good balance of human and computer interaction to produce the best results. Always take time to analyze your results and make course corrections when necessary. Don't assume that you can just sit back and enjoy the ride if you use an automated system.
What other bid strategies have worked for you? Please add your comments below.
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