Not using it simply means missing out on revenue
➡️ While managing PPC, we extensively use dynamic bid adjustments to maximize our coverage for TOS placement to take advantage of the uplift in conversion, ROI, & Ad revenue.
Lately, we documented recent changes to showcase this impact on a campaign.
And the slides show the WoW change
😎 Overall, the campaign generated $1.3k additional revenue in 2 weeks, at 10% lower ACOS
➡️ The Starting point
- On Apr 10, we looked back at the placement level performance on TOS with a dynamic bid – up & down we’d applied at 6%.
- We decided to increase it to 25%, as the calculation suggested it would still be good.
- Alongside, we also reduced bids on the lower-performing KWs, to push more on TOS and pull back from other placements, and marginally increased bids on high-performing ones.
- We wanted to keep it simple for demonstration.
➡️ A week later (WK 02)
- We saw a 114% increase in sales (+$911), with only a 25% increase in Ad spend (+$102)
- The CPC rather dropped, since we had reduced bids on low-performing KWs too, and the down option (up & down) helps reduce bids as well.
The overall ROAS increased from 2.18 to 3.66, the ACOS dropped by 18.5%,
And the spend distribution looked better & more strategic. Lesser on product pages and rest of search, and more on TOS.
➡️ Two Weeks later
The performance was still better, relatively lesser than the first week, which is expected since not all weeks are the same, but importantly, there is still improvement in performance.
ACOS is still down by 10%, & ROAS up at 2.8.
As a next step, we are ready to push higher on TOS to better spend distribution, being confident to see higher growth.
➡️ Important tips for using dynamic bids:
1. Make calculated increments, based on your current placement performance.
2. Ensure your keyword bids are also optimized. For example, if rest of the search has a high bid, consider reducing bid to push more on TOS by increasing %.
3. Works better on structured campaigns. The data is also more granular if the target pool size is less than 20 KWs. The performance is more controlled and stable.
4. Make regular adjustments on bids and placement. And keep adding as long as you’re seeing a positive impact.
We will be sharing more of these in the future as we experiment a lot. Like previously, we compared and found dynamic bid - up & down tends to be more impactful than fixed bids or dynamic bid-down only. Similarly, TOS adjustments provide more stable results than product pages.