AdWords is now Google Ads. Our new name reflects the full range of advertising options we offer across Search, Display, YouTube, and more. Learn more

Ads
2.2K members online now
2.2K members online now
Dive into advanced features like Remarketing, Flexible Bid Strategies, AdWords Editor, and AdWords Scripts
Guide Me
star_border
Reply

How do bid modifiers work with each other

Follower ✭ ✭ ☆
# 1
Follower ✭ ✭ ☆

Lets say I have a bid modifier of 50% for mobile and a bid modifier of -50 for a location. What is going to be the mobile in that area assume the base bid is $5? Would the mobile bid be $3.75 or would one of the modifier not be applied. 

1 Expert replyverified_user
1 ACCEPTED SOLUTION

Accepted Solutions
Marked as Best Answer.
Solution
Accepted by topic author TX-ppcguy
September 2015

Re: How do bid modifiers work with each other

Top Contributor
# 2
Top Contributor
Hi TCX-ppcguy,

I'm not going to try an explain how they stack any better than Google can. Take a look here: https://support.google.com/adwords/answer/2732132?hl=en and expand the section "How multiple bid adjustments work" - if you still have questions please feel free to comment...we're glad to try and help.

-Tommy
Tommy Sands, AdWords Top Contributor | Community Profile | Twitter | Philly Marketing Labs
Did you find any helpful responses or answers to your query? If yes, please mark it as the ‘Best Answer.’

View solution in original post

Marked as Best Answer.
Solution
Accepted by topic author TX-ppcguy
September 2015

Re: How do bid modifiers work with each other

Top Contributor
# 2
Top Contributor
Hi TCX-ppcguy,

I'm not going to try an explain how they stack any better than Google can. Take a look here: https://support.google.com/adwords/answer/2732132?hl=en and expand the section "How multiple bid adjustments work" - if you still have questions please feel free to comment...we're glad to try and help.

-Tommy
Tommy Sands, AdWords Top Contributor | Community Profile | Twitter | Philly Marketing Labs
Did you find any helpful responses or answers to your query? If yes, please mark it as the ‘Best Answer.’

Re: How do bid modifiers work with each other

Follower ✭ ✭ ☆
# 3
Follower ✭ ✭ ☆
Thanks that answers my question but creates more. I had no idea that calculator existed.

So here is what I see. I have a location modifier of -65% and a device modifier of +35% and Google says my bid will be -53%. I just says to multiply the two but I don't get that answer when I do that. What is the actual formula they are using.

Re: How do bid modifiers work with each other

Top Contributor
# 4
Top Contributor
My understanding is that the adjustments layer on top of each other.

Let me see if I understand this:

$5 bid
$5 * .35 (location adjustment of -65%) = $1.75
$1.75 * 1.35 (device adjustment) = $2.36

$5 * .47 (Google's -53% bid) = $2.35

I'd say that's not too bad.

Does that help at all? How are you calculating and what are you coming up with?

-Tommy
Tommy Sands, AdWords Top Contributor | Community Profile | Twitter | Philly Marketing Labs
Did you find any helpful responses or answers to your query? If yes, please mark it as the ‘Best Answer.’

Re: How do bid modifiers work with each other

Participant ✭ ✭ ☆
# 5
Participant ✭ ✭ ☆

I think you're right, Tommy.  

 

This is the example Google gives:

 

Starting bid: $1
California adjustment: $1 x (+20%) = $1.20
Saturday adjustment: $1.20 x (-50%) = $0.60
Resulting bid for searches in California on Saturday: $0.60

Re: How do bid modifiers work with each other

Top Contributor
# 6
Top Contributor
Thanks Amy!

And, for a little further confirmation:

The note about "just multiply the modifiers together" it does actually work - I set up a spreadsheet just to double check my math here Smiley Happy

You can run the calculations in any order:

$5 Bid
-65% Location Adjustment
+35% Device Adjustment

(5 * .35) * 1.35 = $2.3625
(5 * 1.35) * .35 = $2.3625
5 * (1.35*.35) = $2.3625

Don't forget PEMDAS! :0

-Tommy
Tommy Sands, AdWords Top Contributor | Community Profile | Twitter | Philly Marketing Labs
Did you find any helpful responses or answers to your query? If yes, please mark it as the ‘Best Answer.’

Re: How do bid modifiers work with each other

Follower ✭ ✭ ☆
# 7
Follower ✭ ✭ ☆
I see my problem. I did not know that

5 - (5*0.65) = (5*0.35)

I guess I was asleep that day in class. To be sure I understand when I want to subtract 65% from something I just multiply it by .35?

What is the formula to get the 53% that was the math I was trying to do? What do I do with -0.65 and 0.35 to get 0.53? If I do (-0.65 * .35) I get -0.23

Re: How do bid modifiers work with each other

Participant ✭ ✭ ☆
# 8
Participant ✭ ✭ ☆
Hey TX-ppcguy,


You're right, when you want to subtract 65%, you take it times .35 (or 35%) because 100%-65%=35%. If you wanted to add 65%, you could multiply times 1.65 or 165%.

The trick is you multiply one bid modifier against your bid, and then you take the answer of that and multiply it against the next bid modifier.

so you take your $5 bid and multiply it times 35% (the equivalent of -65%) and the answer is $1.75

Then you take $1.75 (from the last equation) and multipy it against the next modifier, which is 1.35 (or 135%) and you get $2.36.

$2.36 is 53% of your original $5 bid.

Does that help? It's kind of confusing to write out!