Effects of Bid Multipliers on Bid Management Algorithms
Wondering if anyone has experience with this. I'm using Marin, and currently don't have many multipliers added into the mix. One specific one that I would like to implement is a boost by household income, ie users in the top 10%.
I noticed that these users convert 2x as good as my average, so I'd like to include a 100% bid multiplier on these users.
Where I am starting to think myself in circles is how Marin will start to calculate bids for these keywords after the performance improves. Assuming that the trend holds relatively true, I should get a larger percent of traffic converting 2x as good as my average. Thus, raising my overall conversion rate. So I'm thinking that Marin will then think, "I can raise the bids", since the basic formula is conversion rate x target CPA. Now my keywords will have an increased original bid, and increased cost for the 50% of my traffic that probably shouldn't be getting an increased bid, and my new 100% multiplier will have increased the final bid even higher than the original target.
So the question is, how do you account for this? Will Marin detect the decreased efficiency at different starting bids and normalize over time? Would I need to decrease my multiplier after the initial bid is increased? Will it just go in a never ending circle? Or will these factors end up canceling each other out and I am just over thinking?
Re: Effects of Bid Multipliers on Bid Management Algorithms
This Community is probably not the best place to post a question about 3rd-party software. Contact that company directly to ask them how their product works.
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