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CPA Bidding and New Keywords With No Historical Data

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

We have recently implemented CPA bidding achieving some good results as we are in the lead generation business and have very strict CPA goals.

However we are not sure how to work on traffic and keyword expansion by introducing new keywords. 

How does CPA bidding strategy handle new keywords with no data. Does it give it some time and bid the keyword for example on first page or top of page in order to gather data and then make a decision about the proper bid based on history that it gathers or it completely ignores that keyword as it is new and has no data.

We also though if using a blend of CPA bidding on the campaign level and "Top of page bidding" on the keyword level for newly introduced keywords (or keywords without much data) but we are unable to do that as Adwords shows an error saying that we need to first change our campaign bidding strategy (which is target CPA) before we can apply another bidding strategy at the keyword level. Is there any solution around that?

 

 

2 Expert replyverified_user

CPA Bidding and New Keywords With No Historical Data

[ Edited ]
Top Contributor
# 2
Top Contributor

Hi @Nikolay S,

 

Make sure the new keywords have a good cpa history of at least 3 months. I would not put them under the scope of that strategy before a good period of time has elapsed and stats accrued. In regard to your other question, I'd separate the keywords in question in a separate campaign.

 

Best,

Lakatos

CPA Bidding and New Keywords With No Historical Data

Visitor ✭ ✭ ✭
# 3
Visitor ✭ ✭ ✭

Hi @Lakatos,

Well they are "new keywords" exactly for the reason they have no previous history.

Also separating them to a new campaign that has the auto-bidding set up as "Top of Page Bidding", getting some data and then moving them to the campaign that was on CPA bidding means we again lose the historical data by moving from one campaign to the other. There has to be a smarter way of doing this.

 

Regards,
Nikolay Saev

CPA Bidding and New Keywords With No Historical Data

Top Contributor
# 4
Top Contributor

I appreciate new keywords cannot have a history by definition. What I meant is that I would not implement a CPA strategy to them. I'd prefer waiting a few months so they can accrue stats. Your guesswork in the original question puts me under the impression that you have very high expectations from the strategy and I am afraid the current existing algorithm will not meet them. It works mostly fine though and may spare a lot of working time for you. Just make sure you regularly monitor the CPC values the strategy accrues.

 

Lakatos

CPA Bidding and New Keywords With No Historical Data

Visitor ✭ ✭ ✭
# 5
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Hi @Lakatos,

I like how it works currently but I am thinking of the future and how we can grow it when we need to.

I really prefer to use CPA bidding by Google rather than look for a 3rd party bidding tool such as Marin and Kenshoo because I do believe the algorithm has much more data available than what these tools can work with.

 

What you propose is generally ok but it still doesn't solve the issue that once you move a keyword the data is lost or we would need to create new campaigns all the time and move them from manual or top page bidding to CPA bidding once we aggregate the data.

Also we were thinking something else - switching a campaign to manual bidding, apply CPA Bidding Portfolio strategy to the ad groups we already have data for and move keywords that have not enough data to new ad groups with top page bidding. This way they are all kept under the same campaign and it's a tad easier to manage.

 

Regards,

Nikolay

 

CPA Bidding and New Keywords With No Historical Data

Top Contributor
# 6
Top Contributor

@Nikolay S

After adding new keywords allow the system to reach  a new "steady state" and analyze the conversions. This is a machine learning algorithm.

 Note: Google requires 30 conversions during the last 30 days. If you want the system to be reliable with its estimates (and without getting into  too much statistics) triple this number and have about 100 conversions or more during the last 30 days.

Moshe, AdWords Top Contributor , Twitter | Linkedin | Community Profile | Ad-Globe
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