Bid Strategies & Budgeting

Question 1

Whats the difference between these strategies?

1. Manual CPC and
2. Enhanced CPC (ECPC)

Answer 1

Manual CPC simply involves you stipulating a max CPC that you are willing to pay at KW auction.

Enhanced CPC is a partially automated strategy where you allow Google to leverage potential data about your historical performance (notably conversions).

This strategy raises your manual bids in situations that seem more likely to lead to a sale or other conversion on your website, and lowers your bid for situations that seem less likely to lead to a conversion.

They may use data such as location, time, device to either bid higher or lower based on your historical performance.

They may bid 30% higher, or 30% lower, thought most of the time, the adjustment is only upwards.

Example of when it could be good to use enhanced = Large vol of data, multiple campaigns, limited time to analyse.

Time, eg, drunken peeps look at your service late at night, but forget about you in the morning. U would be happy for G to optimise your campaign and reduce bids in the auction to show ads to these people.

Question 2

What does the ‘daily budget’ setting actually mean on a campaign?

Answer 2

You can actually spend up to double your daily budget.

But it won’t exceed your daily budget over the course of an entire month.

Google now doesn’t limit your Daily Spend to the Daily Budget that you select in Settings – they now charge you 30 days x Daily Budget Setting.

So G gives you the opportunity to spend more when the opportunities (searches) are there for you on G.

Isaac thinks this is a good system and provides better results - but you need to manage client expectation, so they understand how it works.

Question 3

can you set max CPC in google ads at campaign level?

HOWEVER…?

Answer 3

No - you set it at either one of theses levels:

1. per Adgroup
2. per Keyword

HOWEVER! you can batch edit all adgroups in a campaign.

Question 4

Does a keyword max CPC override its adgroup max CPC?

Answer 4

The default bid you create for an ad group is a convenient way to manage the bids for all of the keywords in your ad group.

You can override the default ad group bid for individual keywords by raising or lowering their Max CPC on the Keywords page.

So yes, the more granular u go the more precise control u can apply.

Question 5

Describe a way of controlling ad group max bid from analysing conversions?

Answer 5

well look at the historical search terms that triggered your ads;
look at the search terms that converted;
then take the highest bid for these and set as the new max CPC;
this may mean we don’t bid as much and rank as well for other long tail KWs, but historically, they haven’t converted, so we are supporting whats converting with a high enough bid whilst minimising waste.

Try again, screen search terms not KWs

Question 6

Enhanced CPC is a partially *** strategy where you allow Google to leverage potential data about your historical performance, notably what?

Answer 6

automated

conversions, on the KW (and adgroup) in question, to help maximise conversions or conversion value.

So it’s not going to work if u don’t have many conversions, so manual cpc best place to start anyway

Question 7

how do you determine what your daily budget should be for a new campaign?

Answer 7

no way to answer that for a new campaign

RE: we need to appreciate R.A.V.i
The relevance, affordability & volume of traffic from our KWs.

min starting point: £10/day spread across one or two KWs - or perhaps £5/ day/ KW.

If u don’t have the vol of traffic on 2 KWs say, to hit £10/day, just increase number of kwds to get more data quickly.

Question 8

Once your campaign is up & running and you have some data, how do you set your daily budget? (2)

What’s the caveat for having too many KWs for your budget?

Answer 8

1. how much profit do I need to earn?
   RE: if you know your numbers, and how much a KW delivers, and know what your capacity to fulfill customers is (i.e. how many deals/ jobs/ bookings/ order u can service in one time period), then if budget allows, you can fill your boots up to your ability to deliver.

You could use the most expensive kw bid that converts to set your budget, or use an average, ideally weighted average

2. Isaac will suggest ratios between budget & KW amount -

if you have too many KWs for your budget, ie. you spread your budget thin, G will try and give all you KWs exposure, but it will take too longer to get meaningful data - you want as much business insight as fast as possible.

Question 9

Explain difference between standard vs accelerated delivery settings?

(2021 Jan - I believe this is obsolete now, not showing in my account).

Answer 9

standard: even distribution of imps throughout the day
So G limits your spend, and you’ll miss out on potential opportunities.

accelerated: best way to get true volume & project how much more imps there are available for your KWs
e. g. if you spend your budget by 10am, you know there is a lot more imp volume to be had

Question 10

Does it cost more or less to bid on your own branded KW?

Answer 10

RE: Less, in my experience, a lot less. So really important to cover this off, and even to a branded campaign if traffic volume merits it.

Question 11

How can we check that a cost/conv figures is acceptable?

Answer 11

We need to know our enquiry-sale conversion rate first, i.e. the CPA (cost per acquisition). This figure needs to be factored in to our cost of sale to ensure we can be profitable.

From Jan 2018 to Feb 2020, it was 18%.

Then we can work out how many enquiries it takes to convert to a sale:
100% divided 18% - the 100% representing a deal/ sale completion i.e. an acquisition.
100/18 = 5.55
5.55 x £29 = £161

Effectively 20% enq-sale conversion, means 1 in 5 enq = a sales. So the cost of 5 enquiries = CPA.