When you set more than one bid adjustment in your campaign, those adjustments are typically multiplied together to determine how much your bid will increase or decrease. However, multiple mobile and location bid adjustments behave differently. Multiple mobile bid adjustments If you set a mobile bid adjustment at the campaign-level and also at the ad group-level, the ad group mobile bid adjustment will be used to determine the resulting bid adjustment. However, if the campaign-level mobile bid adjustment is -100%, then the ad group-level mobile bid adjustment won't be used. Multiple location bid adjustments 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. Multiple Display Network content bid adjustments For Display campaigns, you can set a 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. Learn more about Display Network bidding 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 mobile device, at a certain time of day, or from a specific location.
In this article, you’ll learn about the different types of bid adjustments and their requirements, how multiple adjustments interact, and what options are available for different types of campaigns. If you’re looking for instructions on how to set bid adjustments, read how to add or remove a bid adjustment. How bid adjustments work 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 set a bid adjustment of +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 In another example, let’s say you have a US$1 bid and would like to decrease it. To adjust it to US$0.80, select -20% (not +80%, which would cause your bid to increase to US$1.80). Your actual cost-per-click (actual CPC) is the final amount you're charged for a click. You're often charged less -- sometimes much less -- than your maximum cost-per-click (max. CPC) bid, which is the most you'll typically be charged for a click.
How this works We combine the components of Quality Score (expected clickthrough rate, ad relevance, and landing page experience), the max. CPC bid, and the expected impact of extensions and other ad formats to determine Ad Rank. When estimating the expected impact of extensions and ad formats, we consider such factors as the relevance, expected clickthrough rates, and the prominence of the extensions or formats on the search results page. Each advertiser’s Ad Rank is then used to determine where the ad appears and what types of extensions and other ad formats will show with the ad (or whether the ad or ad format will appear at all). For ads on the Search Network, the minimum Ad Rank required for ads above search results is generally greater than the minimum Ad Rank required for ads beside search results. As a result, the actual CPC when you appear above search results could be higher than the actual CPC if you appear beside search results, even if no other advertisers are immediately below you. Although you may pay more per click, top ads usually have higher clickthrough rates and may allow you to show certain ad extensions and other features available only in top ad positions. As always, you’re never charged more than your max. CPC. bid. Examples If the advertiser immediately below you bids US$2.00, and if that advertiser's ad is the same quality as yours (and has equal-performing extensions and ad formats), you'd typically need to bid a penny more than US$2.00 to rank higher than that advertiser and still maintain your position and ad formats. With AdWords, that's the most you'll pay (about US$2.01), whether your bid is US$3.00, US$5.00, or more. If the advertiser immediately below you bids US$2.00 and has a higher quality ad than you, you'll pay about a penny more than what's required to match that advertiser's higher Ad Rank (and still maintain your position and ad formats), but never more than your max. CPC bid (unless you’re setting bid adjustments or using Enhanced CPC). For certain ads on the Display Network, your actual CPC will be different than described. Learn more about the Display Network ad auction. The max. CPV bid you set helps determine your ad's chances of winning the auction and appearing to viewers. For TrueView in-display ads running on YouTube search results, it can also affect your ad’s position among other ads on the search results page.
A higher max. CPV will increase your ad's chances of appearing, and increase your ad's chances of appearing in a higher position compared to other ads, if applicable. Cost-per-thousand viewable impressions bidding Many advertisers hope viewers will click their ad -- but that's not always the main goal. Maybe you just want a lot of people to see your ad. In that case, bidding by cost-per-thousand viewable impressions (vCPM) is a good way to go. With vCPM bidding, you bid for your ad based on how often it appears in a viewable position on the Google Display Network. You set the max amount you want to pay for viewable ads, whether they're clicked or not. Why use vCPM bidding Some people prefer vCPM bidding because they want to be able to set a maximum amount they'll pay for each time their ad can be seen, or each viewable impression, instead of for each click. vCPM bidding is unavailable for the "Search Network only" campaign types. How vCPM and CPC bids compete Ads with different bid types can compete for the same Display Network placements. To keep things fair, when CPC and vCPM ads compete for the same Display Network placement, the two types of ads are compared apples-to-apples on how much they're effectively willing to pay for the impression. With a vCPM ad, the max viewable CPM bid represents how much the advertiser is willing to pay for each 1,000 viewable impressions; with a CPC ad, Google estimates how many clicks the ad might receive in 1,000 impressions to get the comparison. How to use vCPM bidding With vCPM bidding, you set the highest amount you want to pay for each 1,000 viewable ad impressions. We call this the maximum vCPM bid, or just "max viewable CPM." The higher your max viewable CPM, the greater the chance that your ad will appear. As always, the AdWords system will charge you only what is needed to place your ad above the next-highest ad, and only charge if the ad became viewable. How does AdWords know when ads are viewable? Tip Text ads using vCPM bids can have a special edge: when they win a placement, they're always given the entire ad space, rather than sharing the space with other text ads. That makes them more likely to be noticed. Your max viewable CPM bid may win different levels of impressions at different prices than previous max CPM bids. Because you don’t pay for impressions that were not viewable, you may want to increase your max viewable CPM bid to achieve the same level of spend and traffic volume. Learn more about the differences between CPM and vCPM bids You can set your max viewable CPM bid in a couple of ways. Let's say you sell flowers, and you've set up an ad group with keywords like roses, daisies, and tulips. Ad group bids: Set your max viewable CPM at the ad group level, and you'll have the same viewable CPM bid for all keywords and placements in that ad group. Let's say you choose an ad group viewable CPM of US$1.20. If your ad shows on a site that's associated with roses or tulips, or appears on a blog about flowers, the max viewable CPM is always US$1.20. This is the easiest way to manage your viewable CPM bids. Placement-level bids: You can set a viewable CPM bid for each placement if you like. If you know a site gets great results for you, you can bid more for placements on that site. Cost-per-view (CPV) bidding is the default way to set the amount you'll pay for your TrueView video ads (when created with AdWords). With CPV bidding, you'll pay for video views and other video interactions (such as clicks on the call-to-action overlays, cards, and companion banners), whichever comes first.
With traditional online text or image ads, customers on the web may see your ad, read its text, and click your URL to go directly to your site. This type of interaction doesn't take interactive content like video ads into account. With CPV and video ads reporting, you can evaluate how engaged viewers are with your content, where they choose to watch your videos, and when they drop off from watching your content. How it works To set a CPV bid, you enter the highest amount you want to pay per view while setting up your ad group in a video campaign. Your bid is called your maximum CPV bid, or simply "max. CPV." This bid applies to all ads in an ad group. Example If you think it's worth 25 cents to have someone watch your video, you can set US$0.25 as your max CPV bid. This means: For a TrueView in-stream video ad, you'll pay a maximum of US$0.25 when someone watches 30 seconds of your video (or the duration if it's shorter than 30 seconds) or engages with an interactive element, whichever comes first. Interactive elements include call-to-action overlays (CTAs), cards, companion banners, and links to your site or mobile app. For a TrueView in-display video ad, you'll pay a maximum of US$0.25 when someone clicks on a video ad thumbnail or title and begins watching your video. You can also set a lower bid for your in-display video ads than for your in-stream video ads. How to decide what max. CPV bid amount to set How do you know what max. CPV to set? You can base this amount on the traffic forecasting data we present as you select your targeting settings and max. CPV when building a new campaign (or managing your ad groups later). You can also base this on what you know about your business and the value of a view. What you're charged Your max. CPV bid is the most you'll be charged for a video view, but you won't always be charged this maximum amount. Wherever possible, we'll try to charge you only what's necessary for your ad to appear on the page. The final amount you actually pay for a view is called the actual CPV. Actual CPV is often less than max CPV because with the AdWords auction, you pay no more than what's needed to rank higher than the advertiser immediately below you. Two elements affect the actual CPV you pay: Quality Score and Ad Rank. Your Quality Score is a measure of how relevant your ad is to a customer, and includes multiple performance factors like view rates. Once your Quality Score is determined, it's multiplied by your max CPV bid to rank your ads among other advertisers. That's called Ad Rank. Once all ads have been ranked, the actual CPV for your ad is based on an equation that considers the ad rank of the bidder below you and your Quality Score. The highest ranked ad wins, and the cost for a video view of this ad (the Actual CPV) will be just above the CPV bid of the next ranking ad. Example Let's say your max. CPV is $5.00, and there are two other advertisers in the auction with you with the same Quality Score. One bids a max. CPV of $1.00, and another bids a max. CPV of $3.00. Since there are no other competitors bidding more than $5.00, you're the top bidder. However, we're not going to charge you $5.00 if your closest competition is only bidding $3.00. We'll charge you $3.01. $3.01 is your actual CPV. From Manual CPC bidding to a number of automated bid strategies, AdWords offers many different ways for you to set your bids. Each is designed to help you achieve a specific business goal. In some cases, your goals may change, and you’ll need to update your bid strategy to match.
Instructions Sign in to your AdWordsaccount. In the "Campaigns" tab, click the name of the campaign you want to edit. Click the Settings tab. Scroll down to the "Bid strategy" section. Click Edit then Change bid strategy. Select your new bid strategy. Click Save. Target CPA is an automated bid strategy that sets bids to help get as many conversions as possible at the target cost-per-acquisition (CPA) you set. Target CPA is available as either a standard strategy or as a portfolio strategy.
Before you can set up a Target CPA bid strategy, your campaign will typically need to meet the following requirements:
Using historical information about your campaign, Target CPA bidding automatically finds an optimal CPC bid for your ad each time it's eligible to appear. AdWords sets these bids to achieve an average CPA equal to your target across all ad groups and campaigns using this strategy. Some conversions may cost more than your target and some may cost less, but altogether AdWords will try to keep your cost per conversion equal to the target CPA you set. These changes in CPA take place because your actual CPA depends on factors outside Google's control, like changes to your website or ads or increased competition in ad auctions. Additionally, your actual conversion rate can be lower or higher than the predicted conversion rate. For example, if you choose a target CPA of $10, AdWords will automatically set your CPC bids to try to get you as many conversions at $10 on average. To help improve your performance in ad auctions, this strategy adjusts bids using real-time details like device, browser, location, and time of day. It also automatically adjusts bids based on whether or not someone is on one of your remarketing lists. Keep in mind Because “target CPA” optimizes your bids based on real-time data, your existing bid adjustments are not used. There is one exception: You can still set mobile bid adjustments of -100%. Note that you don’t need to remove bid adjustments—they just won’t be used. Enhanced cost-per-click (ECPC) is a bidding feature that raises your bid for clicks that seem more likely to lead to a sale or conversion on your website. That helps you get more value from your ad budget.
Imagine that your job is to stand outside a barber shop and bring in new customers. If a businessman with shaggy hair comes walking by, you give him a big wave and a hello. If a bald man walks by, not so much. ECPC does a similar job for your AdWords ads. It's a bidding feature that looks for ad auctions that are more likely to lead to sales for you, and then raises your max CPC bid up to 30% (after applying any bid adjustments you've set) to compete harder for those clicks. ECPC factors in real-time details such as device, browser, location, and time of day to adjust your bids during each ad auction. ECPC double-checks itself by leaving part of your traffic alone to work with your regular max CPC bids. Then it compares the two sets of results and adjusts accordingly. So when you choose ECPC, you should see conversion results that are better than, or at least the same as, the results you get without it. ECPC for text ads is available on the Search Network and the Display Network, except in campaigns that promote mobile app downloads. For Shopping ads, ECPC works only on Google Search. Tip: Save time managing your bids with a flexible ECPC bid strategy You’ll be able to apply ECPC bid optimization more strategically to entire campaigns or specific ad groups of your choice. Learn about flexible bid strategies Enhanced CPC How to turn on ECPC Note: Your campaign must have conversion tracking turned on for ECPC to work. If it’s not turned on, opting into ECPC will have no impact on your bids. Sign in to your AdWords account.
Your Ad Rank helps determine your ad's position among other ads on search results pages in the Search Network. If you run your ads on the Display Network, Ad Rank plays the same key role there. As Ad Rank is a score that's based on your max. CPC bid and the quality of your ad compared to other advertisers' ads, raising your max. CPC will probably increase your ad's chances of appearing.
Max. CPC bidding options You can apply your max. CPC bid several ways. Let's say you have a bakery, and you've set up a "breakfast" ad group with keywords like donuts, crullers, and apple fritters. Here's how you might set your bids: If you want all the keywords in an ad group to have the same bid: Set an ad group default bid. If you choose a US$1 CPC, then that's your max. CPC when someone searches for donuts, crullers, or apple fritters -- any of your keywords. The same bid applies to placements if you're running your ad on the Display Network. This is the easiest way to manage your CPCs. If you want the keywords in an ad group to have different bids: Set keyword bids. For instance, if you know that people who search for apple fritters tend to buy more than people searching for donuts, then you might bid US$1.25 for each click on apple fritters and US$1 for each click on donuts. If you want your Display Network targeting methods to have different bids: You can set a max. CPC for placements, topics, or other targeting methods. For instance, you can try to help your ad show on a donut recipes website by setting a custom bid for that particular placement on the Display Network tab. How do you know what CPC to set? You can figure this out based on what you know about your business and the value of a sale. For example, if you sell US$5,000 diamond rings, one new customer is probably worth more than if you sell US$0.99 packs of gum.
Once you've set max. CPC amounts that you're comfortable with, see how many clicks your ads begin to accrue, and whether those clicks lead to business results on your website. Also, remember that Internet traffic is always changing, so it's important to re-evaluate your CPC bids regularly. Using Google tools to help you decide CPC bids 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?" Keyword Planner shows you how often some keywords get searched, and gives you cost estimates at a glance. 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. |
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