Process of setting the price of bids for paid search advertisements at different levels for different entities identified via better bidding to achieve maximum ROI on advertising.
What is bid optimization?
Bid optimization is the result of using better bidding in conjunction with a strategic choice of where advertising dollars are spent. Proper bid optimization allows organizations to get granular with how much they spend for each click (conversion or otherwise) in order to maximize advertising ROI.
What is better bidding?
Better bidding is treating each keyword, social media ad, or programmatic display/video bid as a single entity. By parsing them out, an organization can figure out which entities are the most important to their specific audience, which makes it clear where they should be focusing their efforts.
Best practices for bid optimization
- Track everything: This makes it easier for ad teams to see where the most biddable traffic is.
- Bid as low to maintain results: Regular testing helps ad teams figure out exactly how much they need to spend in order to produce results. When done properly, this results in better ROI.
- Stay diligent with bidding: Like anything else, bid values change over time. Keep track of what you’re bidding on so that you aren’t bidding for terms like “summer vacation” during the middle of winter.
- Use bid multipliers: Bid multipliers, like Skai’s, allow you to easily manage bids aimed at your most valuable audiences.
What are bid multipliers?
Bid multipliers are, put simply, software that helps you manage segmented ads targeting your most valuable audience (ex. Middle-aged men who use iOS on their mobile devices between 7-10PM). When implemented correctly, these can make bid optimization much more effective by allowing businesses to move their bids up or down based on certain conditions being met.