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Should bidding strategy determine account structure?

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

Should the bidding strategy - CPC/CPM/CPA have an impact while setting up the account structure?

 

For example, if I'm selling running shoes, and CPC as well as conversion are my objectives, should one set up two separate accounts (so one can establish separate budgets) or club them in two ad groups (sharing the same set of keywords)?

 

Thanks

1 Expert replyverified_user
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Accepted by topic author Rohit S
September 2015

Re: Should bidding strategy determine account structure?

Top Contributor
# 3
Top Contributor
I would think that you would have one main over arching goal. Yes, you want a low CPC, but are conversions your main goal? Sometimes paying a higher CPC will help you get a higher conversion rate and more conversions... So, is the goal profit-based? It likely should be!

I would not have separate accounts -- That would be double-serving. And targeting the same keywords in separate campaigns can also be a problem for the algorithms. You won't be able to choose which campaign/ad group etc gets the impressions/clicks.

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Re: Should bidding strategy determine account structure?

Community Manager
# 2
Community Manager

Hi Rohit, 

 

I'd suggest starting off with 2 separate campaigns - this gives you a better way to analyze what's working best for you. 

 

Let's wait to hear more from the other experts here.

 

Thanks, 

Mini

Marked as Best Answer.
Solution
Accepted by topic author Rohit S
September 2015

Re: Should bidding strategy determine account structure?

Top Contributor
# 3
Top Contributor
I would think that you would have one main over arching goal. Yes, you want a low CPC, but are conversions your main goal? Sometimes paying a higher CPC will help you get a higher conversion rate and more conversions... So, is the goal profit-based? It likely should be!

I would not have separate accounts -- That would be double-serving. And targeting the same keywords in separate campaigns can also be a problem for the algorithms. You won't be able to choose which campaign/ad group etc gets the impressions/clicks.

Re: Should bidding strategy determine account structure?

Badged Google Partner
# 4
Badged Google Partner
Rohit S

Both Mini and Shanee gave you excellent advice on the account structure as setting up different campaigns. However in your question you mentioned
"(sharing the same set of keywords)?"

With that, you would need to make sure you have some account optimization and structures set ups as Adwords will only chose one keyword query that has the best Ad Rank to display the best ad. Basically depending upon your Bids and quality scores, duplication and competing keywords could be an issue for serving your ads between the different campaign groups. You may find out that only One Campaign Group is ever represented and wins the auction most if not all of the time. if you are testing version you may want to consider ad scheduling or different budgets to sculpt the campaigns accordingly.

Hope that helps

Re: Should bidding strategy determine account structure?

Participant ✭ ✭ ☆
# 5
Participant ✭ ✭ ☆
Hi Rohit,

Great question. I would be interested to hear more about your strategy as it relates to your business goals. Generally, I try to keep CPC in check but my main focus is on ensuring lead volume at an acceptable CPA. If you have a high conversion rate, you might be surprised at how high your CPC can be and you can still turn a nice profit.

As Eric and Shanee mentioned, if you are planning to use the same keywords and send the traffic to one domain then you should only have one account. If you set up two accounts, you'll risk being flagged and banned from AdWords. If you set up two campaigns in the same account, Google will choose which ad to show (they won't both show).

If you want to test different bidding strategies, you can use the "flexible bidding strategy" option to test CPA bidding within certain areas of the campaign. I tend to like manual CPC the best but it just depends on the account and the amount of time you have to manage it.

Re: Should bidding strategy determine account structure?

Visitor ✭ ✭ ✭
# 6
Visitor ✭ ✭ ✭
Good advice Shanee. It makes sense. Thanks