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Optimizing bids requires major time and attention. We PPC’ers have come up with many strategies to make certain we are winning auctions. Ultimately, we all want to allocate our budgets wisely to generate the highest amount of conversions. We are constantly asking ourselves, how can we optimize bids to get the most out of our keywords? So let’s take a look at what it takes to make your keywords soar.
The Key To Keywords
Today we will look at the performance of two keywords over a 24-hour period. We will be strategically bidding to maximize conversions for a daily budget of $100.
| Stats for Keyword 1: | |||||
| Bid | Position | Clicks | Conversions | Cost | CPA |
| $1.00 | 5 | 5 | 3 | $5.00 | $1.60 |
| $2.00 | 4 | 7 | 4 | $14.00 | $3.50 |
| $3.00 | 3 | 10 | 7 | $30.00 | $4.29 |
| $4.00 | 2 | 12 | 8 | $48.00 | $6.00 |
| $5.00 | 1 | 18 | 14 | $90.00 | $6.40 |
| Stats for Keyword 2: | |||||
| Bid | Position | Clicks | Conversions | Cost | CPA |
| $1.00 | 5 | 10 | 2 | $10.00 | $5.00 |
| $2.00 | 4 | 20 | 4 | $40.00 | $10.00 |
| $3.00 | 3 | 30 | 7 | $90.00 | $12.86 |
| $4.00 | 2 | 35 | 9 | $140.00 | $15.56 |
| $5.00 | 1 | 40 | 12 | $200.00 | $16.67 |
According to the statistics of the above keywords, we can calculate a winning combination for our budget of $100.00:
- Keyword 1 with a bid allocation of $5.00, in position no.1 and a 78% conversion rate is yielding 14 conversions. Costing our budget $90.00.
- Keyword 2 with a bid allocation of $1.00, in position no. 5 and a 20% conversion rate is yielding 2 conversions. Costing our budget the remaining $10.00. Our $100 daily budget yields 16 total conversions with an average CPA of $6.25.
Winning Combination:
| Keyword 1 | |||||
| Bid | Position | Clicks | Conversions | Cost | CPA |
| $5.00 | 1 | 18 | 14 | $90.00 | $6.40 |
| Keyword 2: | |||||
| Bid | Position | Clicks | Conversions | Cost | CPA |
| $1.00 | 5 | 10 | 2 | $10.00 | $5.00 |
Make The Complex Simple
Keyword management is a complex and time-consuming process. As you know, there are many more variables to consider with AdWords auctions: positive, negative, positioning, performance according to the time of day/week/month, etc. The number of variables can feel endless for Google Ads campaign managers. Here at AdScale, we have created a platform to simplify this process to smartly allocate budgets for your bids. Let our AI automatically adjust bids to strategically boost the results of your keywords – giving you time to focus on a strategy, rather than tactics.
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