AdWords
2.3K members online now
2.3K members online now
Improve your AdWords performance and boost your ROI, CTR, and Quality Score
Guide Me
star_border
Reply

Bid Management Advice to Improve ROI

Follower ✭ ☆ ☆
# 1
Follower ✭ ☆ ☆

Hello Guys

 

I'm after some advice please, I recently started an adwords campaign my ROI wasn't very good.  So I decided to improve my website.  I improved the speed, the layout, optimisation etc etc.

 

I have been running adwords now for 3 days and can see my ROI has improved.....which is good news, I have other things which I would like to improve but these will take a little time to implement.

 

So what I would like to do is tackle bid management....

 

I do not feel confident of where to start so I'm hoping you can give me some solid advice.

 

I have one or two competitors, usually it is only Amazon but they do not sell my product directly, it is 3rd part sellers on Amazons Marketplace, Amazon advertise indiscriminately on every product by this manufacturer whether it is being sold on their site or not - so whilst Amazon is a brand name that would garner alot of clicks.....I see a big opportunity here for me.

 

Currently my average position is number 1.  My max CPC is 50p but I feel that even if I were to appear 3rd I feel my CTR would still outperform my competitors, for a couple of reasons A) my adcopy is tighter and more relevant, B) if someone searches for a specific product I much more likely to have the item in stock (or as a pre order) and I send the customer to that page rather then just a generic page.

 

I believe it should be possible to reduce my CPC and improve my ROI so I would like to start testing this theory but I'm not confident of how to go about this and what pitfalls I should be looking out for.

 

My campaign is currently showing as limited by budget which I am aware of, I think if I can improve my ROI then I could increase my budget and therefore reach alot more customers and make alot more sales.

 

Can anyone shed some light on this for me please.....

 

1 Expert replyverified_user

Re: Bid Management Advice to Improve ROI

Top Contributor Alumni
# 2
Top Contributor Alumni

Hi

First of all I would like to thank you for providing such a detailed information about your problem.

Basically ROI depends on 3 important factors CPC, Conversion date & Average order value, out of these CPC is the factor where you have greatest control and thus you are right in looking at bid management to impact your CPC in short term while you fix other parts on your site.

I am going to consider that you have a good campaign structure and all the important keywords in your niche.

In this case if I was in your place I would use ROAS bidding strategy.

Also if you believe you have better chance of having product in stock and should be able to ship it faster than amazon then you can use that in adcopy and it can serve as a great CTA to improve your CTR. You can use something like "Ships in xx days"

Hope this makes sense

 

Regards, Nik
LinkedIn  |   @nikhilparachure | My Blog

Re: Bid Management Advice to Improve ROI

Top Contributor
# 3
Top Contributor

Hi Michael, further to Nik's post, I'll second that CPC is certainly an area where you have some flexibility if you're currently at position #1 fairly consistently.  As you suspect, it's quite possible you could reduce your CPC and therefore position without overly harming your conversion rate since once a click has occurred, the position of the Ad becomes largely irrelevant.

 

Nik's suggestion of using an ROAS strategy is a good one, but it won't work in every case so I'll expand upon a few points:

 

#1 - Bidding strategies require a lot of conversion data to be really effective.  AdWords sets a lower limit of 15 conversions every 30 days but personally I'd look for at least double this number of conversions in that period to get a good response.

 

#2 - A bidding strategy may not work well at the Campaign level, depending upon your Account structure so consider using flexible strategies at the Ad Group level instead.

 

#3 - An ROAS strategy may not be useful if your conversion values vary by order.  It sounds like you're only selling one product but do buyers sometimes buy one and sometimes buy two or more?  ROAS strategies work best where the conversion value is either always the same or very nearly the same.

 

#4 - If you don't use an automated bidding strategy, don't forget location and time bidding adjustments.  If you're targeting an entire country, split your location targeting up (by State or Province, etc.) so you can see data by these smaller regions more easily and apply bid adjustments.  Use Ad Scheduling in the same way to examine data by hour of day/day of the week and make adjustments there too.  

 

#5 - Check your mobile data (and your website's performance for mobiles).  Apply bid adjustments here as well.

 

Don't forget that bid adjustments are cumulative and only have an effect for manual Campaigns/Ad Groups.

 

Jon

AdWords Top Contributor Google+ Profile | Partner Profile | AdWords Audits

Re: Bid Management Advice to Improve ROI

Follower ✭ ☆ ☆
# 4
Follower ✭ ☆ ☆
Hi Nik & Jon

Thank you both for replying.

I am experimenting with adcopy at the moment and have found that I have had some good success with this so I will continue....

You are correct I am selling one product ( I do sell other things but I'm only advertising this one product ) if I make a conversion it can be one product or two or more purhcased. The way my postage is set up it encourages customers to buy 2 or more but that doesn't always happen ofcourse.

I'm targeting the UK which isn't a big country so you are suggesting that I consider targeting specific regions or cities within the UK? I really didn't imagine this would have a positive effect...

OK I will check mobile data again....I do get ALOT of traffic from mobile devices......

My initial thoughts on what to do were reduce my bid in incriments - maybe 10% so I eventually dropped to position 2 for example and then implement better adcopy that I have been working on to get me back up to position 1 but at a lower cpc - is that realistic or am I dreaming???

I also was about to launch my remarketing campaign to help with conversion too.

But I hadn't considered location targeting, or Ad scheduling either so what order do you think I should do first?