AdWords can be a very successful revenue and lead generator for businesses. If campaigns aren’t properly optimized or targeted, however, you could end up spending a lot on clicks that never convert. Google has very powerful insights and optimization tools available directly within the AdWords system that are very useful and I find are often not taken advantage of. Google has been focusing on giving marketers good, actionable information with hopes it will be used for campaign optimizations to increase ROAS. Bid Adjustments are a great way to take those important insights and put them to work for your optimization efforts.
What Are AdWords Bid Adjustments?
Bid adjustments allow you to look at your current traffic and prioritize that traffic based on how it is converting. You are able to look at several data categories including device, location, time of day, remarketing lists, and demographic. You use this data to adjust your bids for unprofitable traffic or increase for the ones delivering high ROAS. A percentage (+x% or -x%) is added to the current CPC bid for that traffic. For example, if you have set your bid on Wednesday to +30% with a current bid of $1 the new CPC bid would be $1.30. Let’s take a closer look at all the bid adjustments available to you in AdWords.
Device Bid Adjustments
This is the first thing on my list to check when optimizing campaigns. Is my traffic converting higher on desktop then mobile? This gives you good insight into how your website is working for you all together but there is a need to adjust bids if one device not delivering results.
You can do this analysis and make edits by clicking on settings and click on device. This will show the performance by device (desktop, mobile, tablet). Conversion rate and return on ad spend are powerful metrics that should be considered when making the adjustment.
Adjust your bid by clicking into the bid adjustment and updating the information.
Location Bid Adjustments
Location bid adustments allow you to increase/decrease your bids by country, states and even city. Trend data can be very strong here and help to identify if certain areas have higher brand reputation/awareness. This can also be used to prioritize traffic that has higher profit margins. For example, if you have lower shipping rates to certain areas you can increase your presence and maximize that traffic.
Remarketing Lists Bid Adjustments
Remarketing lists, in my opinion, should be always be layered on to search campaigns. You have full control in creating custom segments in AdWords/Analytics. Remarketing lists are a great way to stay in front of your potential customers to get a purchase or current customers to encourage incremental sales or increased awareness of new products. This bid adjustment gives you an opportunity to maximize this traffic.
This feature is found in the Audience tab.
Demographic Bid Adjustment
Demographic bid adjustments are one of the newer features to be included in AdWords. Demographic data gives you an inside look on who is converting and now you can adjust your bid based on this data! The below example shows how important to this advertiser it would be to prioritize males between 35 – 44. This rich data Google now provides is very exciting and should be used when there is a clear trend.
Don’t Miss Out!
Take advantage of all this rich data Google is providing to maximize your search campaign return. Bid adjustments are a handy tool to reduce unnecessary spend outside your target market and increase traffic from those who are trending high to convert. It is important to analyze this regularly and optimize based on true trends. Don’t just set it up and expect this to be the magic recipe to success. Google is adding new features ongoing so stay tuned for new opportunities around bid adjustments.