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How long should I wait to tinker with Manual Bidding?

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

Hello fellow AdWords Users!

 

I am relatively new to posting on the AdWords Community, so I apologise if what I ask is "obvious" and such.

 

My question is simple in theory but hard in practice. With Manual Bidding for a first time campaign with a first time AdWords User (me Smiley LOL), should I wait one week, before I start "adjusting" my KW bids? Or should I "tinker" with them at the end of each day?

 

I have done some research with Manual vs Automatic Bidding, and it seems that Manual is the way to go, as my main goal is for high clicks and conversions at low CPC (or is it CPA? Sorry im unsure).

 

For some background, I am doing e-commerce. Thank you so much for your time!

2 Expert replyverified_user
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Accepted Solutions
Marked as Best Answer.
Solution
Accepted by topic author Hakim M
September 2015

Re: How long should I wait to tinker with Manual Bidding?

Top Contributor
# 2
Top Contributor
Hello, Hakim.

For e-commerce, what I've always done is to look at the website's average conversion rate for organic traffic and adjust my bids accordingly, while taking the account the average cost per conversion and profit per conversion.

Basically, you can afford to bid (profit / conversion) x (conversion rate in percentages) if you want to break even.

Here's an example: the average profit per conversion is 100 USD. The conversion rate is 2.5%. That means you can afford to pay up to 2.5 USD per click, while hoping that the people who reach your website through AdWords will buy something that will bring you pretty much the same profit and will convert at pretty much the same rate. 100 clicks will cost you 250 USD, and if you'll get 2.5 conversions worth 100 USD each you'll break even.

If you want to play it safer, you can allow yourself an error margin of 20% and bid only 2 USD per click and see where that gets you.

The caveat: sometimes people search for something and buy something else. Average order values vary, conversion rates vary, etc. But as long as you know what the profit is, or what the target CPA is, if that's the metric you're using, keeping it under the maximum should be ok for you.
Calin Sandici, AdWords Top Contributor | Find me on: Google+ | Twitter | LinkedIn | myBlog
Was my response helpful? If yes, please mark it as the ‘Best Answer.’ Learn how here.

View solution in original post

Marked as Best Answer.
Solution
Accepted by topic author Hakim M
September 2015

Re: How long should I wait to tinker with Manual Bidding?

Top Contributor
# 3
Top Contributor

Hi Hakim,

 

In addition to detailed explanation by Calin above, I would really come to the basics here and suggest you that bidding manually or chosing the automatic bidding are 2 different aspects of Adwords. If you are new, you might go for automatic bidding, but you will not have much control over the CPC, other adjustments etc...

 

However, the manual bidding gives you all the flexibility which you want and you can bid on various terms/keywords according to your convenience. This would ensure that you are taking control of your account and you have enough time to devote to your account to adjust the bidding based on the performance of your keywords.

 

E-commerce is a very interesting and deep topic in terms of Adwords. As Calin has explained very well above with an example. I would only add that you should link your Adwords with Analytics account to get more insights on how Adwords and other traffic sources are behaving with your website in terms of engagement, sales etc...

 

My 2 cents!

Pankaj

View solution in original post

Marked as Best Answer.
Solution
Accepted by topic author Hakim M
September 2015

Re: How long should I wait to tinker with Manual Bidding?

Explorer ✭ ☆ ☆
# 4
Explorer ✭ ☆ ☆

Just addition to some great suggestion above. As you stated you are from e-commerce background and if the campaign you have is not very new, you can actually go every day to keywords and adjust them if needed.This is something every big or small company need to do every day.

Google has really good functionality which can help you doing that and its called Automated rules .

Through this you can actually adjust keyword max cpc depending upon many attributes including cost per conversion too.

 

View solution in original post

Marked as Best Answer.
Solution
Accepted by topic author Hakim M
September 2015

Re: How long should I wait to tinker with Manual Bidding?

Top Contributor
# 2
Top Contributor
Hello, Hakim.

For e-commerce, what I've always done is to look at the website's average conversion rate for organic traffic and adjust my bids accordingly, while taking the account the average cost per conversion and profit per conversion.

Basically, you can afford to bid (profit / conversion) x (conversion rate in percentages) if you want to break even.

Here's an example: the average profit per conversion is 100 USD. The conversion rate is 2.5%. That means you can afford to pay up to 2.5 USD per click, while hoping that the people who reach your website through AdWords will buy something that will bring you pretty much the same profit and will convert at pretty much the same rate. 100 clicks will cost you 250 USD, and if you'll get 2.5 conversions worth 100 USD each you'll break even.

If you want to play it safer, you can allow yourself an error margin of 20% and bid only 2 USD per click and see where that gets you.

The caveat: sometimes people search for something and buy something else. Average order values vary, conversion rates vary, etc. But as long as you know what the profit is, or what the target CPA is, if that's the metric you're using, keeping it under the maximum should be ok for you.
Calin Sandici, AdWords Top Contributor | Find me on: Google+ | Twitter | LinkedIn | myBlog
Was my response helpful? If yes, please mark it as the ‘Best Answer.’ Learn how here.
Marked as Best Answer.
Solution
Accepted by topic author Hakim M
September 2015

Re: How long should I wait to tinker with Manual Bidding?

Top Contributor
# 3
Top Contributor

Hi Hakim,

 

In addition to detailed explanation by Calin above, I would really come to the basics here and suggest you that bidding manually or chosing the automatic bidding are 2 different aspects of Adwords. If you are new, you might go for automatic bidding, but you will not have much control over the CPC, other adjustments etc...

 

However, the manual bidding gives you all the flexibility which you want and you can bid on various terms/keywords according to your convenience. This would ensure that you are taking control of your account and you have enough time to devote to your account to adjust the bidding based on the performance of your keywords.

 

E-commerce is a very interesting and deep topic in terms of Adwords. As Calin has explained very well above with an example. I would only add that you should link your Adwords with Analytics account to get more insights on how Adwords and other traffic sources are behaving with your website in terms of engagement, sales etc...

 

My 2 cents!

Pankaj

Marked as Best Answer.
Solution
Accepted by topic author Hakim M
September 2015

Re: How long should I wait to tinker with Manual Bidding?

Explorer ✭ ☆ ☆
# 4
Explorer ✭ ☆ ☆

Just addition to some great suggestion above. As you stated you are from e-commerce background and if the campaign you have is not very new, you can actually go every day to keywords and adjust them if needed.This is something every big or small company need to do every day.

Google has really good functionality which can help you doing that and its called Automated rules .

Through this you can actually adjust keyword max cpc depending upon many attributes including cost per conversion too.

 

Re: How long should I wait to tinker with Manual Bidding?

Visitor ✭ ✭ ✭
# 5
Visitor ✭ ✭ ✭
Thank you so much guys for your feedback! It is much appreciated.

Gotta love the AdWords Community help!