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Automated bidding for profit

Follower ✭ ☆ ☆
# 1
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I run a lead generation business. Bid management is very time consuming for me now as I do it manually. I want to automate it.

 

I know exactly the revenue I get for each lead for any campaign.

 

But I'm unsure on which automated bidding strategy to implement. I'm really only interested in profit, I don't really have budget constraints as such so if I need to spend a bit more to get a lot more revenue (and hence more profit) then that is ok.

 

What is the best approach to automated bidding with the sole goal of maximising profit?

2 Expert replyverified_user

Automated bidding for profit

Top Contributor
# 2
Top Contributor

Hi Adam,

 

I would want to focus on conversions and I would use the smart bidding strategy of Target ROAS automated bidding.  

 

Kind Regards,

 

James

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Google AdWords Top Contributor | Google Partner | GYBO | Local Guide | My Profile


 


 


 

Automated bidding for profit

Rising Star
# 3
Rising Star

Of course automating the bidding only works if AdWords has conversion data. 

 

Automated bidding for profit

Explorer ✭ ✭ ✭
# 4
Explorer ✭ ✭ ✭

hi @Adam C

 

If you want to know which automated bidding strategy is good, you have to check your campaign data statistics and on the basis of that data, you can select the bidding strategy which is good for you.

 

It's all about testing and implement the process to make a good campaign.

 

Thanks,

Aslam

Automated bidding for profit

Follower ✭ ☆ ☆
# 5
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Thanks for your replies so far. I do have conversion data, quite a lot of it.

 

My big hesitation here is that none of the automated strategies are truly built around profit.

 

A lot of the time I see situations where I have a KW around position 5 that is profitable and my approach would be to raise bids to get it into the top 4. I lose margin but get a lot more volume / revenue in return and more profit overall.

 

I'm wondering if the right approach for me would be to create a set of rules to alter bids based on current CPA and ad position combined with a max CPA. However the issue I have here is the frequency of bid changes and lack of enough recent data on some long tail KW's. My big KW's have enough traffic to do this kind of approach but some long tail KW's may only get 30 clicks per month which I don't think is enough to reliably make bid adjustments.

 

Am I misunderstanding Target ROAS? My understanding is that it is about return on ad spend - which is not the same as total profit.

 

Re: Automated bidding for profit

Explorer ✭ ✭ ✭
# 6
Explorer ✭ ✭ ✭

@Adam C

 

To know more: About Target ROAS bidding

 

Hope this will help you to understand ROAS Bidding in detail.

 

Thanks,

Aslam

Marked as Best Answer.
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Accepted by topic author Adam C
May

Automated bidding for profit

Top Contributor
# 7
Top Contributor

Hi Adam,

 

Target ROAS is geared towards maximizing your budget based on a conversion value, which means getting more leads that bring in more profit (ideally). Every business is different and there is no automated product that is going to be labeled maximize profit. Why is this? Because we all want to do that with every action we do with AdWords. It just varies for everyone based on the type of product, service, budget, profit margin, etc. that is in use. 

 

Based on the additional info you posted today, I do think simply setting up automated rules would help you. Please review this information here, which includes: raise bids to the recommended top of page bid (Search Network only)... and could be beneficial to you. I would also still suggest giving Target ROAS a trial run. I posted a link in my first reply. 

 

Let us know how tings go.

 

All the Best,

 

James

_________________________________________________________
Google AdWords Top Contributor | Google Partner | GYBO | Local Guide | My Profile


 


 


 

Automated bidding for profit

Follower ✭ ☆ ☆
# 8
Follower ✭ ☆ ☆

James - thank you, I think your response pretty much sums it up, thanks. I think I will test out those two approaches and see what works best for me.

 

Cheers

 

Adam

Automated bidding for profit

Top Contributor
# 9
Top Contributor

Very welcome, Adam.

 

We do hope you find the perfect action for your wants & needs. Testing will reveal that, no doubt. 

 

Cheers,

 

James

_________________________________________________________
Google AdWords Top Contributor | Google Partner | GYBO | Local Guide | My Profile