What are the main factors that can affect PPC bidding?

There are many factors affecting PPC bidding, name the main ones.

Bidisha
05 Jun
1215 Views
6 Answers

MD

Meenal
05 Oct

This management of bids to meet targets is one of several core activities needed to maintain a healthy PPC account, and this month I&rsquo;ll review several bid management strategies available to advertisers. But first, let&rsquo;s cover some basic questions that are important regardless of what strategy you use. Bid Management Goals There are generally four different goals advertisers try to achieve in an account: Increase branding by driving lots of impressions while staying under a target CPM. Increase site traffic by driving lots of clicks while staying under a target CPC. Increase leads by driving conversions while staying below a maximum CPA. Increase sales by driving conversions with a positive ROI. Each of these goals requires a different bid strategy. It&rsquo;s fine to mix and match goals in an account, but you can&rsquo;t have multiple goals for one item &mdash;&nbsp;that pits different strategies against each other and prevents the individual strategies from delivering the desired outcome. Another important consideration is that, for conversion-driven strategies (numbers 3 and 4 on the list above), there are two different ways to judge performance. The first is to try and maximize the revenue, the second is to maximize profitability. For the former, you will consider the average performance of the CPA or ROAS, whereas for the latter you will need to look at the incremental cost of each additional click you buy. I&rsquo;ll explain this more in the section about incremental cost-per-click. The important thing for now is to understand there are two options that require differences in how bids will be managed. Next, consider that ROAS (return on ad spend, or conversion value / cost) can be measured in many different ways because it relies on the advertiser importing the value into AdWords through conversion tracking, Google Analytics goals, or offline conversion import. Some advertisers will submit a value that reflects the profit they make on the items sold whereas others will import the total revenue produced by the sale. If you&rsquo;re importing the profitability data, then an ROAS higher than 1 is acceptable. If you&rsquo;re importing revenue data, a much higher ROAS is needed before you get into profitability, and what that exact threshold is depends on the margins of the business.

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This management of bids to meet targets is one of several core activities needed to maintain a healthy PPC account, and this month I’ll review several bid management strategies available to advertisers. But first, let’s cover some basic questions that are important regardless of what strategy you use.
Bid Management Goals
There are generally four different goals advertisers try to achieve in an account:
Increase branding by driving lots of impressions while staying under a target CPM.
Increase site traffic by driving lots of clicks while staying under a target CPC.
Increase leads by driving conversions while staying below a maximum CPA.
Increase sales by driving conversions with a positive ROI.
Each of these goals requires a different bid strategy. It’s fine to mix and match goals in an account, but you can’t have multiple goals for one item — that pits different strategies against each other and prevents the individual strategies from delivering the desired outcome.
Another important consideration is that, for conversion-driven strategies (numbers 3 and 4 on the list above), there are two different ways to judge performance. The first is to try and maximize the revenue, the second is to maximize profitability. For the former, you will consider the average performance of the CPA or ROAS, whereas for the latter you will need to look at the incremental cost of each additional click you buy.
I’ll explain this more in the section about incremental cost-per-click. The important thing for now is to understand there are two options that require differences in how bids will be managed.
Next, consider that ROAS (return on ad spend, or conversion value / cost) can be measured in many different ways because it relies on the advertiser importing the value into AdWords through conversion tracking, Google Analytics goals, or offline conversion import. Some advertisers will submit a value that reflects the profit they make on the items sold whereas others will import the total revenue produced by the sale.
If you’re importing the profitability data, then an ROAS higher than 1 is acceptable. If you’re importing revenue data, a much higher ROAS is needed before you get into profitability, and what that exact threshold is depends on the margins of the business.

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