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Increasing the bids is always the solution?

Follower ✭ ✭ ✭
# 1
Follower ✭ ✭ ✭

Dear All,


I started at the beginning of the month an account that doesn t really look like working.


At the moment the CPL is four times what I can afford and I m having troubles finding where the issues are.


I asked my account manager at Google to help but the suggestion didn t go further than “increase bids and increase daily budget”.


So I am asking you this: is it possible that increasing the CPC will make my CPL go down?






1 Expert replyverified_user

Re: Increasing the bids is always the solution?

Explorer ✭ ✭ ☆
# 2
Explorer ✭ ✭ ☆

Hi Floriana


Lets try sorting the issue with some general maths!


The basic rule when it comes to bids or max CPC is that the bid should not be higher than the Value per click.


Now suppose for a campaign you expect a 10% conversion rate (CR), so for every 100 clicks you expect 10 conversions.


Calculate the net profit which each conversion gives you. Lets say that a product sells for $100 while $50 is spent on it by you which implies a net profit of $50 on each conversion.


Net Profit* Expected conversions= Total net profit




The Value per click comes out to be in this case= $500/100(clicks)= $5


This means that a bid more than $5 would more likely bring you loss. So this can be your calculation with what you can bid for each keyword in a campaign. Now by bid optimization we mean how successfully we can acquire conversions with bids lower than $5 as in this case.


Increasing your bid would not decrease the CPL but might increase your conversions and thus decreasing your CPA.


This is actually a really variable statement.There are many factors associated with it.


What you need to do is work on your account structure and get to the basics. Don't bid more than your value per click and try incorporating all best practices you can.


You haven't discussed anything more about the account which leaves me a bit crippled going ahead with this issue.



Marked as Best Answer.
Accepted by stephenb (Follower ✭ ☆ ☆)
September 2015

Re: Increasing the bids is always the solution?

Explorer ✭ ✭ ☆
# 3
Explorer ✭ ✭ ☆

Hi floriana,

Below are some general tips you can say -

1) Reduce your bids - If your price per transformation is out of hit, this generally indicates that the following formula is not including up effectively for you:

Cost/Alterations = CPA

This seems fairly uncomplicated and apparent, but the truth is it’s a computation a lot of promoters just do not do before they leap into transformation search engine marketing initiatives. Know what your transformation amount is and what your CPA is, and know what you can perfectly pay for each click on, on regular, to create your consideration or a section of your consideration successful.

2) Increase your bids - also, do not be reluctant to bid higher on the search phrases that drive efficiency. This will win your strategy more amounts on the best doing keywords.

3) Next you can find more specific search phrases (keywords).

4) Also, Increase quality score - that means a costs lower price and lower costs per click on and per conversion.

5) Evaluate your current ad written text to look for ads that are generating too much of the incorrect visitors.

6) Improve your conversion rate to lower your CPA.

7) If possible add negative keywords, go through your search query report and find what exact terms your visitors type to find your ads.

Hope it helps!


Re: Increasing the bids is always the solution?

Follower ✭ ✭ ✭
# 4
Follower ✭ ✭ ✭
Thanks! How do I do "3" and "7" if I only have display campaigns in teh account (though some contextual)?

Re: Increasing the bids is always the solution?

Top Contributor
# 5
Top Contributor
Have you tried actually running a search campaign? In general, the CPL is a lot lower.

As for your questions on 3 and 7, they are done the same way as you would to a search campaign.

Re: Increasing the bids is always the solution?

Explorer ✭ ✭ ☆
# 6
Explorer ✭ ✭ ☆

I was about to mention the search network usage for your campaigns as david has already scribed. Do give it a go,you might be missing out on some really great stuff.