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How do I know if i am overbidding?

[ Edited ]
Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

With higher bids my shopping campaign seems to get more impressions and less clicks lowering click through rate. How do I know if I am bidding too much?
Because we sell a high value high margin product (wood stoves) you would think that you might have to pay more than the benchmark £0.37 per click to get quality traffic.
I'm really new at this so any advice would be greatly appreciated. There seem to be loads of info about shopping campaigns but no suggestions on how to really bid.
Thanks
Cisco

How do I know if i am overbidding?

Participant ✭ ✭ ✭
# 2
Participant ✭ ✭ ✭

In my experience it is best to manage shopping campaign bids based upon tracking of search impression share, click share, conversion rate, and cost/conversion (CPA) versus CTR.  You want the bid high enough that you are pulling adequate search impression share. 

 

Shopping ads are more binary than traditional search ads, rank is less of a factor.  You are either in the (first group of the) prominently displayed panel of ads, or not. 

 

Optimization of Shopping campaigns is a little-discussed topic, as far as I can tell there is yet to be a single book published on the topic. When you go beyond a couple of dozen products it can get complicated in a hurry.

 

How do I know if i am overbidding?

Badged Google Partner
# 3
Badged Google Partner

Are you actually getting fewer clicks than before? Remember you don't pay for impressions, and there is no "KW quality score" for campaigns which do not use KW's for targeting. I wouldn't worry about CTR as much as total conversions, and overall CPA. If you have the margins in the product, then keep spending until (like Steve mentioned) you maximize your potential impression share. If there is more market share available (potential impressions), then there should be more sales available as well. 

 

Tom