Company Director, Dr Sam Chen, ever published this post at Webcertain Blog, and below is the post details.
Managing bids in PPC search campaigns involves a great variety of factors and issues, which makes it rather complicated.
This blog post aims to address this problem, and summarises a five-point framework that can be used as a basis for making bidding judgements and decisions, based on my experience of working on campaigns in multiple search engines, including Google, Baidu, Bing, Haosou, Naver and Daum.
The framework consists of five factors: spending, target, keyword, position and quality score.
PPC stands for “pay per click”. This means that whenever a user clicks on your ad, you need to pay.
Our clients will all have a PPC budget for a certain period, for example 3, 6 or 12 months. The budget can be further broken down month by month.
Ideally, for each month, the client would want the campaign to be kept running every day, and for the whole month’s spending to be no more than - but as close as possible to - the monthly budget.
In this eventuality, we would evenly allot a portion of the monthly budget to each day, and manage campaigns based on the daily budget. As long as each day’s spending follows the daily budget, monthly spending can easily be controlled within the monthly budget.
Sounds simple, right? However, the reality is that web traffic moves up and down on a daily basis. Correspondingly, spending also fluctuates every day. In addition, daily spending is allowed to be a certain percentage over the daily budget (e.g. 20% in Google AdWords). Such a situation means that it is important to check campaign spending every day.
When you’re optimising bids in a campaign, you must always keep the overall budget in mind. If your campaign is over-spending, although you will want to bid highly for well-performing keywords, you may need to lower your bids in other areas of the campaign so that you do not exceed the budget. If your campaign is under-spending, you should look for opportunities to raise your bids so that you get more traffic and maximise your budget.
When you have campaigns running in multiple countries, it’s likely you’ll have a budget per country – but if a client gives you a permission to move budgets between countries, it is worth taking an overall view of your campaigns, and being prepared to move budgets between markets to maximise performance globally.
What is the purpose of your PPC campaign? What do you want to achieve? What is your target? Your target is a very important factor in campaign optimisation, and directly influences how you should bid on keywords.
Understanding your target, or goal, allows you to identify which keywords are performing well and which keywords are performing poorly. The same keyword can be classified as high-performing based on one target, but low-performing based on another.
For example, in the table below, if achieving a high click-through rate (CTR) is your target, KW1 is a low-performing keyword and KW2 is a high-performing keyword; but if achieving a high conversion rate is your target, KW1 is good and KW2 is poor.