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You know how the story goes. You have a high-performing keyword with a good CPA and want to generate more traffic. So you increase the bid amount expecting better results, but all you’re left with is diminished returns.
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Conclusions:
Target CPA> 0.95
- When your current CPA is close to the target CPA, there’s a high risk that increasing your bid will cause the actual CPA to become higher than the target CPA. You’ve just turned a good keyword into a bad one.
Search Loss Impression Share <5%
- When your search loss rank is lower than 5% – increasing bids will not necessarily buy you more impressions, but this can increase CPA.
Average Position Is Higher Than 1.2
- When your average position is higher than 1.2, increasing the bids will not substantially improve your position nor will this improve the CTR. Most likely, it will only increase the CPA.
High Budget Utilization
- If your account is utilizing its full monthly budget, increasing bids for some keywords requires lowering bids for others. In this scenario, you should prioritize the keywords with the highest potential. Increase the bids for those keywords first, while decreasing bids of the remaining keywords.
Insignificant Data
- Having sufficient statistical data is critical for making informed decisions. For example, increasing your bid does not guarantee a significant increase in conversions. Rather, additional information regarding market trends, targeting, and essential metrics should be examined.
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