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Brand automated bidding

Follower ✭ ✭ ☆
# 1
Follower ✭ ✭ ☆

Hi All,

 

 

I have seen competitor bidding on our brand increase massively over the last two months, due the this aggressive competitor activity brand cpcs have increased from £0.50 to £1.49 in two months!!!

 

To ensure we are always in position 1 i created a bidding rule stating if below position 1.1 increase bids. Is this the best way to go about this,  have contributed to the inflation of my own CPC? Any thoughts would be appreciated.

 

 

 

Thanks

 

 

Jonny

1 Expert replyverified_user

Re: Brand automated bidding

Top Contributor
# 2
Top Contributor

Hi Jonny, great question.

 

If you're seeing a steady increase in CPC for brand terms then you're almost certainly in a "bidding war" with your competitors and that trend is only likely to continue.  Don't forget you have a significant advantage over these competitors in that you are the brand people are looking for so your Ad doesn't necessarily have to be #1.0 the whole time to still get the majority of clicks.  Also don't forget that many people click on more than one Ad in a set of results so even if they do click your competitor first, who's at #1, there's still a very high chance they'll come back and click you next (then buy).  I'd be inclined to aim for an average position of between #1.1 and #1.3.  This still means you're #1 most of the time, but it'll reduce the bidding war aspect and probably won't affect your click results overly.  I'd use two rules, one to increase when the average drops below 1.3 and one to decrease when the average goes above 1.1.  Make sure you don't make your adjustments too large, or over too short a period or you may end up with your Ads "see-sawing" up and down.  I'd suggest in your case an increase of 3% and a decrease of 2% based upon the last 7 days.  This strategy will become even more useful when you consider regional variations...

 

What geographical area are you targeting?  If it's the US (or any large region) I'd recommend splitting your Campaigns up logically - probably by Time Zone.  My reasoning here is that you're likely to see some variation in CPC across geographical areas so, for example, you might need to bid $1.50 in CA to be #1 but only $0.90 in Texas.  So, combined with the strategy above, you could end up paying a lot less for that #1.2 position in certain areas.

 

Once you have geographical splits, you may be able to examine data on an even more granular level (for example by US State) and apply bid adjustments.  You'll need a good amount of data but, for example, if you can see that North Dakota has an average of 1.0, you can apply a small (say, -3%) adjustment to bring it down a little.  Equally, if you see Florida is hitting 1.5 you can apply a small positive adjustment.

 

What sort of Quality Scores are you seeing?  If they're anything less than 10/10 you could try to increase them as you'll pay less for these top spots.  Competitors should struggle to get such high QSs so you'll be paying a lot less than they will.

 

Jon

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Re: Brand automated bidding

Visitor ✭ ✭ ✭
# 3
Visitor ✭ ✭ ✭

Cost-per-acquisition (CPA) bidding one of the best option to select. CPA bidding mostly focuses on maximizing conversions,  rather than clicks.

 

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Re: Brand automated bidding

Follower ✭ ✭ ☆
# 4
Follower ✭ ✭ ☆
Hi Jon,


Great point, I implemented these and will monitor closely.

With regards to targeting its UK, so one time zone. Quality score currently averages around 9/10

Re: Brand automated bidding

Follower ✭ ✭ ☆
# 5
Follower ✭ ✭ ☆
Thanks for the suggestion but for For me this isn't a viable option, with Brand due to the heavy competition, I want to appear for every search, essentially having a 100% impression share.

using the CPA model would mean I could potentially miss out.


Thanks

Jonny

Re: Brand automated bidding

Top Contributor
# 6
Top Contributor

Sorry Jonny, should have spotted you used £ not $ - remiss of me, I usually do Smiley Happy

 

The UK does still have regions, of course.  It's probably not going to be the same sort of variations you'll see across an area like the US, but you may see variations between England, Scotland and NI, or even between counties, especially if your business includes a local element where perhaps your competitors don't serve areas that you do and vice versa.

 

Jon

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