Module 2.2: Determine your bid and budget (PART 1)

Question 1

Name the three basic types of bidding strategy.

Answer 1

1. Cost-per-click (CPC)
2. Cost per thousand viewable impressions (vCPM)
3. Cost-per-acquisition (CPA)

Question 2

What bidding strategy should you use to if you want to generate traffic to your website?

Answer 2

Cost-per-click (CPC)

Question 3

What bidding strategy should you use if you want to increase brand awareness?

Answer 3

Cost per thousand viewable impressions (vCPM)

Question 4

What bidding strategy should you use if you want customers to take a direct action on your site

Answer 4

Cost-per-acquisition (CPA)

Note: make sure conversion tracking is enabled to make this more effective.

Question 5

What are the two types of Cost-per-click (CPC) strategy?

Answer 5

• Maximize Clicks is an automated bid strategy.

All you have to do is set a daily budget, and the AdWords system automatically manages your bids to bring you the most clicks possible within your budget.

• Manual CPC bidding lets you manage your maximum CPC bids yourself.

You can set different bids for each ad group in your campaign, or for individual keywords or placements.

Question 6

Why should you choose the Maximise Clicks (CPC) bidding strategy?

Answer 6

• You have an advertising budget you’d like to reach consistently.
• You don’t want to spend time monitoring and updating individual cost-per-click (CPC) bids, and you’re willing to let the AdWords system update CPC bids automatically.
• You’re mainly interested in increasing website traffic.
• You’re new to AdWords or don’t know exactly how much to bid for particular keywords or placements.

Question 7

Why should you choose the Manual CPC bidding strategy?

Answer 7

• You’d like to control maximum CPC bids for individual ad groups, keywords, or placements.
• You’re mainly interested in increasing website traffic, not necessarily brand awareness.
• You don’t need to reach a target budget every month.
• Your campaign targets the Search Network, the Display Network, or both.

Question 8

Why should you choose the manual vCPM bidding strategy?

Answer 8

• Your ads are designed to increase awareness, but not necessarily generate clicks or traffic.
• You prefer the traditional industry metrics of vCPM (cost-per-thousand viewable impressions) campaigns.
• You’re targeting particular placements, not just keywords.
• You’re mainly interested in increasing brand awareness. Image ads and other multimedia formats often serve that purpose best, and these ad formats run on the Display Network.
• Your message is in the ad itself, so you don’t need people to click through to your site. This may apply to events (such as a television premiere) or political advertising.

Question 9

What does your campaign require in order to be eligible for the Target CPA bidding strategy?

Answer 9

Your campaign must meet a few requirements in order to be eligible for Target CPA bidding:

• You have conversion tracking enabled.
• Your campaign targets the Search Network, the Display Network, or both.

Question 10

Why should you choose the Target CPA bidding strategy?

Answer 10

• Your campaign is direct-response oriented. For example, the campaign focuses on generating sign-ups or sales on an e-commerce website.
• Your campaign has a single well-defined conversion type, such as a completed purchase or sign-up.
• Your campaign has a relatively stable conversion rate, with no major changes (such as redefining the conversion event or moving the conversion tracking code) within the last 2 weeks.
• For best performance, your campaign should receive at least 50 conversions per month. AdWords relies on historical conversion data, so the longer conversion tracking has been running, the more data the system has, and the better job it can do optimising your return on investment (ROI).

Question 11

What does the Bid Simulator do?

Answer 11

The Bid Simulator runs “what-if” scenarios like, “How many more impressions would I have gotten if my bid had been $0.10 higher last week?”

Question 12

What does the Keyword Planner do?

Answer 12

The Keyword Planner shows you how often some keywords get searched, and gives you cost estimates at a glance.

Question 13

What does the First-page bid estimates do?

Answer 13

The First-page bid estimates helps you see how much you may need to bid to put your ad on the first page of Google search results.

Question 14

What is Enhanced cost-per-click (ECPC)?

Answer 14

• Enhanced cost-per-click (ECPC) is a bid strategy that automatically adjusts your manual bids for clicks that seem more likely to lead to a sale or conversion on your website.
• To use Enhanced CPC, you’ll need to have conversion tracking enabled.

Question 15

How does Enhanced cost-per-click (ECPC) work?

Answer 15

• ECPC looks for ad auctions that are more likely to lead to sales, and then raises your max CPC bid up to 30% (after applying any bid adjustments you’ve set) to compete harder for those clicks.
• If a click seems less likely to convert, AdWords will lower your bid by as much as 100%.

Question 16

What is the difference between Enhanced cost-per-click (ECPC) and Target CPA bidding?

Answer 16

ECPC

• Works with all your campaign settings and max CPC bids
• Can raise bids by up to 30 percent
• Works with third-party bidding systems, even if they’re automating your bids

Target CPA bidding

• Is based on a target CPA you set
• Has full freedom to set your CPC bid for each auction to increase the chance of a conversion
• Can be used with third-party bidding systems, but the same campaign cannot use Target CPA and another bidding solution simultaneously

Question 17

What are the similarities between Enhanced cost-per-click (ECPC) and Target CPA bidding?

Answer 17

Both ECPC and Target CPA bidding

• Use conversion tracking or Google Analytics data from your account
• Predict a conversion rate for each auction
• Adjust your bids to help you win the most promising clicks

Question 18

What are bid adjustments?

Answer 18

Bid adjustments allow you to show your ads more or less frequently based on where, when, and how people search.

For example, sometimes a click is worth more to you if it comes from a smartphone, at a certain time of day, or from a specific location.

Question 19

How do bid adjustments work

Answer 19

Bid adjustments are set by percentages.

Say you’ve got a campaign that performs well on mobile devices with a max CPC bid of US$1. To show your ad to more customers on mobile devices, you increase your bid by 20% for searches on mobile devices, resulting in a final bid amount of US$1.20. Here’s the math:

Starting bid: $1
Mobile adjustment: $1 + ($1 x 20%) = $1.20
Resulting bid for searches on mobile devices: $1.20

Question 20

What are the different types of bid adjustment?

Answer 20

• Device (Campaigns, Ad groups. -90% to +900%)
• Location (Campaigns. -90% to +900%)
• Ad scheduling (Campaigns. -90% to +900%)
• Top content (advanced) (Ad groups. 0% to +500%)
• Targeting methods (advanced) (Ad groups. -90% to +900%)
• Remarketing lists for search ads (advanced) (Campaigns, Ad groups. -90% to +900%)
• Interactions (Campaigns that were created within the new AdWords experience. -90% to +900%)

Question 21

How do bid adjustments work alongside automated bidding strategies (Maximize Clicks, Target CPA, Target ROAS etc.)?

Answer 21

• If your campaign is using an automated bid strategy other than Maximize Clicks, it’s not possible to set ad scheduling bid adjustments.
• For Target CPA, device bid adjustments change your CPA target, rather than your bid.
• For Target ROAS, the only device bid adjustment that can be used is -100%.

Question 22

What happens if you set up multiple bid adjustments in your campaign?

Answer 22

Adjustments are typically multiplied together to determine how much your bid will increase or decrease. However, multiple device and location bid adjustments behave differently.

Keep in mind that combined bid adjustments cannot exceed a 900% bid increase. For example, a $1 bid with a device increase of 900% combined with a location increase of 900% will result in a bid of only $10. The lowest possible bid adjustment when combining multiple bid adjustments is -90%.

Question 23

What happens if you set up multiple device bid adjustments in your campaign?

Answer 23

If you set a device bid adjustment at the campaign level and an adjustment for the same device at the ad group level, the ad group device bid adjustment will be used to determine the resulting bid adjustment.

However, if the campaign-level device bid adjustment is a 100% decrease, then the ad group level device bid adjustment won’t be used.

Question 24

What happens if you set up multiple location bid adjustments in your campaign?

Answer 24

Multiple adjustments that apply to the same location won’t be combined.

If you set an adjustment of +50% for France, and +100% for Paris, only the adjustment for Paris, the most specific location, will be used for traffic from users in Paris.

Question 25

What happens if you set up Multiple Display Network content bid adjustments in your campaign?

Answer 25

For Display campaigns, you can set bid adjustments at the ad group level on a specific targeting method in the Display tab, as well as on Top content in the Settings tab.

This means that when your ad is eligible to appear on a specific placement that also qualifies as top content, AdWords could use two bid adjustments. One bid adjustment could be based on a specific targeting method, such as topic, and the second could be set for top content.