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Automation - lowering bids based on cost/convertion

[ Edited ]
Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

Hey everyone


What I need to do is to lower my bids on a keyword 0.1€ if my cost/conversion (1-per-click) rises above 10€, when I have least 3 conversions and 100 click.

Lots of my keywords don´t have many clicks, so I cannot base my decissions on yesterdays data, I need at least a week or month for most some of my keywords.


Is this the right way to use automation for this example?



decrease bid 0.1€




cost/conv. (1-per-click) > 10€

Conversions (1-per-click) >= 3

Clicks >= 100



weekly - "using data from" last week (mon-sun)



Moreover, is it possible to tell analytics ONLY to use data collected since last time automation changed the bids on my keyword, so it instantly checks my bids every single time i hit 3 new convertions, and not only once every week?

(Orelse I risk having 2 conversions every week at 100€, and no change at all.)


I´m afraid that if I set the "using data from last week" most of my keywords will not change, as they don´t get 3 conversions pr. week, and if I set "using data from last month" it will take ages before I get my bids right.


Hope some of you can help me out Smiley Happy


2 Expert replyverified_user

Re: Automation - lowering bids based on cost/convertion

Google Employee
# 2
Google Employee

Hi Martin, 


Thanks for posting. That's an interesting question. You can definitely try out using automated rules to change your bids, but in terms of Analytics you can't ask it to only use data since the last time the automation changed your bids. 


Does anyone else on the Community have any thoughts or tips on measuring AdWords results in this situation? 



Re: Automation - lowering bids based on cost/convertion

Top Contributor
# 3
Top Contributor

Hi Martin, I can see what you're trying to do but the figures you've provided (assuming they're real and not just random) worry me a little and the logic of your rule needs adjusting, I think.


Let's look at the figures first.  You say you want to reduce the Max. CPC by €0.10, when you have a cost/conversion greater than €10, from 3 conversions and 100 clicks.  This equation solves to a conversion rate of 3%, at an average CPC of €0.30.  If you reduce the Max CPC by 0.1 you're knocking a huge amount off the CPC - a third - and are almost certainly going to dramatically affect the conversion rate.


As far as the rule itself goes, you can't use >= for conversions or clicks because this would allow the cost/conversion to exceed €10 without altering the Max CPC so long as there were only 2 conversions and fewer than 100 clicks in the time period chosen.


I think you're going to struggle to get good results from automation with conversions that are so infrequent - Google's own Conversion Optimiser requires a minimum of 15 conversions per 30 days for a Campaign and to be honest, I'd consider that a very very bare minimum as I've seen pretty average performance from this setting with so little to work with.


What about other elements of your Account?  Are you marketing a physical product for sale?  Does AdWords return a net profit?  How many Ad Groups and Keywords do you have?  What's a typical CTR for your best Keywords?  What sort of Quality Scores are you seeing?


3% is a pretty good conversion rate so if I were in your position I'd be wary of doing anything to make that worse.  If your Quality Score is anything less than 10/10 for your best performing Keywords you can reduce your CPC and maintain position just by improving that.  If you have Keywords that take clicks but don't convert, get rid of them and use their budget on the Keywords that do.


When budgets are low and/or margins are tight, it's important to focus very tightly on the elements that provide the easiest and most efficient profits, not to spread yourself too thinly.



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