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ROAS bid strategy with Google Shopping..HElp!

VBE
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# 1
VBE
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I have been playing around with google shopping and bid strategies such as ROAS, Max clicks etc.  Having crazy good results with the ROAS bid strategy in terms of conversion rate like over 4%+ and ad spend way way down.  The problem that i notice is ROAS seems to slowly have problems finding clicks and generating consistent traffic.  Seems the basic of this strategy is conversions are key and if you have limited conversions it has a hard time figuring out what to bid on.  Right now my percent is set at 55 so for every $1 it generates .55 cents.  In reality it generates like $2.  So I assume I can continue to push that 55% lower and hope that this allows the system for freedom to generate traffic.  Any ideas how to use this strategy successfully.  

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Re: ROAS bid strategy with Google Shopping..HElp!

Rising Star
# 2
Rising Star
I personally never use automated systems. For example it will not predict seasons. While for example if there is a holiday I preemptively up the spending.

However to answer your questions, when use automated system all it needs is data, if your data becomes too low it will have a hard time giving you good results. Logically speaking you got lower the ROAS requirement and see the results. I think automated ROAS works best if you have a sale every couple of days. If there are gaps, than it starts to fail.

Also with Google Shopping it will be based on all products, which is not a good tactic. One product might have thousands of sales, while the others have less, and thus its based more towards the top sellers.

If you did not have a sale for a long time on one product, why continue bidding?

More info
https://support.google.com/adwords/answer/6268637

Hope this helps.
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Re: ROAS bid strategy with Google Shopping..HElp!

[ Edited ]
VBE
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# 3
VBE
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I assume that the system continues learning. The problem with manual bidding is conversions are lower, ad spend is higher, impressions/clicks are all much higher making me scratch my head. Either google has way more info and knows how to bid effectively to specific visitors, which manual bidding would never accomplish or I am just missing a specific part of manual bidding all together. With large shopping campaigns I feel comfortable bidding on as many products as possible assuming the bids are within reason.   At some point conversions are bound to happen and you could potentially be bidding pennies for conversions. It just really seems like google doesn't even attempt to bid on stuff and i'm not sure why.. conversion data or not.

Re: ROAS bid strategy with Google Shopping..HElp!

Explorer ✭ ✭ ☆
# 4
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You can segment out your campaigns more, using roas bidding for brands/product groupings that get good performance and putting the rest into a separate campaign with a low base mid. Another strategy I commonly use is to setup a high priority campaign that targets top sellers or uses an automated bid strategy, and then have a medium or low priority campaign with some low CPC manual bids to catch anything that the automated bidding misses.

All of this is data driven. With ROAS bidding you're narrowing your target audience so of course you'll see a drop in clicks and impressions; serving the ads to everyone was not generating the ROAS you wanted, so Google is going to stop serving them as often. You could try increasing your budget, or set the campaign to accelerated bidding, this may cause the ads to serve more often, but the truncation in serving that occurs because of ROAS bidding may not be affected much by this.

When conversion data is low, or when only a few items out of a large number are the only ones with conversions, Google is going to follow that data and likely serve those handful of products way more often. This is another reason segmentation is a good idea when using automated bidding systems.

Re: ROAS bid strategy with Google Shopping..HElp!

VBE
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# 5
VBE
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What about using the set minimum bid limit and bumping it from current .10 cents to .20 cents. Would that potentially bump my product location across the board on products google isn't focused on and help bring in new non converted products?