Did you know there is a secret EASY way to optimize conversion within your PPC campaigns? It’s a little trick called “Create Rule For Campaigns” and it should be your best friend. Here is a quick case study of how OrlandoVacation.com improved PPC conversion rate. They were able to decrease cost per conversion by 35%, increase conversion rate by 11% and decrease bounce rate by 4% all by applying a few simple rules to their PPC campaigns.
1. Set all of your bids to your average cost per click over the last 30 days is for your ad groups. Make all keywords within that Ad group the average cost per click. I know it is scary since maybe you are working with a company that sets your bids for you or maybe you have done a lot of work manually optimizing your bids. If you already feel your bids are optimized, great! Save your campaign setting so you can go back to them if this awesome conversion trick doesn’t work out for you.
For example, for Orlando Vacations Orlando Home Rental Campaign, the average cost per click is $1.24, though all the keywords within that campaign have bids between $0.12 and $8.21. Use the average!
2. After you set all your ad groups to their average CPC, go into your keywords and make sure all of your keywords are set at your adgroup max CPC bid. This might seem simple, but since we are going to be optimizing bids on the keyword level, not the adgroup level, we need to make sure our keywords are all the average adgroup cost per click to start.
3. Now, select all of your keywords in all of your adgroups and click the “Automate” button. Then, choose “Change max CPC bids when…” Now were getting to the fun part!
Some good default automated rules include:
-Increase bid 1% for keywords with a bounce rate less than 20% over the last 7 days at 7 AM daily.
-Decrease bids 1% for keywords with a bounce rate over 50% over the last 7 days at 8 AM daily.
-Increase bid to op of page bid if conversion rate is geater than 50% for the last 30 days daily at 9 AM.
-Increase bid to first page bid is keyword conversion rate is greater than 20% for the last 30 days at 10 AM daily.
-Decrease bid 1% if conversion rate is less than 20% for the past 30 days at 11 AM Daily
-Pause keywords with a bounce rate greater than 80% for the past 90 days at 12 PM daily.
Obviously, the exact numbers you choose will depend on your current and expected performance. This is something we at FutureNow can help you set up using your Google Analytics data. You need to take a lot of care to automate your rules correctly. For instance, if you are not tracking conversions properly, this set up will not work. The system will also need some tweeking for campaigns with on page form fills etc. The list of rules provided is a great place to start.
The reason automated rules are so effective is that they focus your spend on high performing keywords and divert money away from keywprds that are not performing. When you have over 1,000 keywords in your account, it is impossible to adjust the bids manually properly on a daily basis and an SEO company can change thousands for their automated bidding strategies.
Week 1: Your keyword is is in a low bid position and is generally showing up in the 8th or 9th position, no one is clicking on it, so it has a low bounce rate and the bid for the keyword increases a couple cents everyday until it starts getting a few clicks.
Week 2: The few clicks the keyword does get perform extremely well. the keyword gets 14 clicks in week 2 and shows a conversion rate of 60%.
Week 3: Since the conversion rate for the keyword is so high, Adwords bumps the keyword up to a top of the page bid. It starts getting a lot more clicks, maybe 35 clicks in week 3. Since there is so much more traffic and it is at the top of the page, the conversion rate goes down to 19%. Now, daily, your bid will go down 1% moving it out of the top of page position into a first page position. The bid will continue to decrease until the conversion rate is back above 20%, where is should pretty much stay the same.
Week 4: Your keyword should be close to an ideal position, whether a high performer with a high bid or a low performer which therefore paused or pushed far down the bid scale as to be rarely seen by shoppers.