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Bid Strategy 101

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# 1
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I am a medium level user of adwords and I want to start experimenting with "bid strategies" CPA.  Any tips or do's and don'ts anyone like to share with me?

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Re: Bid Strategy 101

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# 2
Top Contributor
Hi Colin,
Great question. It's also great that you're at the point where this is something you are considering.

My first piece of advice is, bid strategy data is to be taken with a pinch of salt. It's never 100% accurate no matter what the strategy. So if you're bidding for an exact CPA, you'll get close, but rarely exact.

You're also going to have to have a LOT of conversions for it to work. The more you have, the better decisions the engine can make. If you're cruising along on the bare minimum 15 conversions, you're going to have a bad time. If you're in a high volume conversion situation, you're going to see this work SHOCKINGLY well.

My next piece of advice is, do NOT let this take away your focus from CRO. It's tempting to think your CR is acceptable and your ROAS is acceptable but it can ALWAYS be better. Often, your time is best spent on CR. Moving from a 1% conversion rate to a 2% conversion rate can literally double your profits.

Finally, experiment with different bid strategies. Something unusual I've found was that bidding for top position (not first page) has often provided more value than bidding for a set CPA. With the release of review, callout, call and sitelink extensions this year, showing up in the top 3 is pretty much essential and can often provide conversions far greater than simply being on the first page. Test it out and continue testing ALL the different types of flexible bid strategies available to you. You'll surprise yourself.

Happy Xmas!