When to Increase Bids in PPC: A Quick Beginner’s Guide
1 – Target Cost Per Acquisition (CPA)
PPC advertising has the advantage of being able to give the user an exact number for when you want them to click your ad. This is great because our ultimate goal is to turn clicks into conversions. With PPC advertising, we have another tool in our arsenal to help us reach that goal.
The only problem with this is that it works best for big businesses. It’s near impossible to set a target CPA for smaller, less-established businesses.
Keep in mind that you will be able to use your past experience to estimate how much your target CPA should be.
2 – Target Return On Ad Spend (ROAS)
The best way to think about ROAS is to consider it the absolute center of all your PPC bids. When you have a model that is accruing results, you can then begin to raise the bids to see if you can increase the ROAS column.
This is the best way to increase bids because you will always be able to reach your target ROAS. It is much easier to do this than it is to be able to target a specific CPA.
3 – Maximize Clicks
While this can be a solid strategy, it’s often overlooked. The average click is worth more than the average conversion. Increasing your bids will result in more clicks and, in turn, more conversions.
But, when you are first starting out, your primary focus should be on converting clicks into sales. If you can get a high conversion rate from the clicks, you will be able to get a good conversion rate on your conversions.
4 – Test Your Bid Bins
Test as many bid bins as possible when you first start out. You will have no idea what the correct bid should be. Start at the lowest amount and work your way up.
If you have time, you should also consider running a separate test on the auto-bid feature. If your ad has the keyword in it, the ad will get more exposure than normal, and the auto-bid works around that by increasing your bid. If you have bids set at $1 and the auto-bid is set at $2, it will not raise the bid unless the ad doesn’t have the keyword.
When you are first starting out, focus more on the CPA strategy until your campaign is fully established. Once you know what you need to spend to get a good number of conversions, you can then decide what type of bid strategy you should use.
When you are using your bid strategy, make sure that each bid is made with a certain type of objective in mind. Take note of what you are doing and why you are doing it. When you have a few months of data, you can look back at your campaign and pick a strategy that worked the best for you.
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