How do you test different bid adjustments to find optimal bidding strategies for keywords?

Testing different bid adjustments to find optimal bidding strategies for keywords is a crucial step in optimizing your Bing Ads campaigns and achieving the best possible performance. By experimenting with various bid strategies, you can determine which adjustments yield the most cost-effective and profitable results for each keyword or ad group. Here's how you can systematically test bid adjustments to find the optimal bidding strategy:

1. Define Clear Objectives
Before starting your tests, define your objectives. What are you trying to achieve with bid adjustments? Common goals include:

Maximizing conversions (e.g., purchases, sign-ups)

Minimizing cost per conversion (CPA)

Maximizing return on ad spend (ROAS)

Increasing impression share for specific keywords or products

Improving click-through rate (CTR)

Clearly outline your goals, as this will help you measure success and guide your testing process.

2. Set Up A/B Testing
A/B testing (also known as split testing) is a powerful method for testing bid adjustments. You can test two or more different bid strategies or settings against each other to see which performs better.

Test Different Bidding Strategies: Compare different automated and manual bidding strategies. Some options include:

Manual CPC with specific bid adjustments for certain keywords

Target CPA (Cost Per Acquisition) bidding, where bids are automatically adjusted to try to reach a target CPA

Target ROAS (Return on Ad Spend) bidding, where bids are adjusted to maximize ROAS

Maximize Conversions, which automatically adjusts bids to get the most conversions within your budget

Test Bid Modifiers: For keywords that perform differently on different devices, locations, or times of day, test bid modifiers to see if adjusting bids based on these factors increases performance.

Example: You can create two campaigns or ad groups with the same keywords but different bidding strategies (e.g., Manual CPC vs. Target CPA) and monitor which one leads to better performance.

3. Implement Incremental Bid Adjustments
To avoid drastic changes that could negatively impact your campaign, implement incremental bid adjustments. Small, gradual increases or decreases allow you to test performance while minimizing risk.

Test Percentage Changes: Instead of making large bid changes, try testing with incremental percentage increases or decreases (e.g., +10% or -10% bid adjustments).

Start Small: For keywords with a low or medium amount of traffic, test with smaller adjustments first. Once you see what works, you can scale up.

Example: Test a +10% increase in bid for keywords that are performing well and a -10% decrease for underperforming keywords. Then monitor the results to see if performance improves.

4. Segment Your Testing by Keyword Type
Test bid adjustments separately for different types of keywords (e.g., broad match, phrase match, exact match) to see how they respond to different bid strategies.

Broad Match Keywords: These keywords tend to bring in more traffic but can be less targeted. Testing different bid strategies here (e.g., Maximize Conversions vs. Manual CPC) can help you determine which works best for your broad match keywords.

Exact Match Keywords: Exact match keywords typically have higher intent and can convert better. You might want to focus on Target CPA or Target ROAS for these keywords.

Long-Tail Keywords: These tend to be less competitive, and bid adjustments here may be more focused on reducing CPC and maximizing ROI.

Example: Create separate tests for broad match, exact match, and long-tail keywords to see if bid adjustments have different impacts on each.

5. Test Device-Based Bid Adjustments
Device targeting can significantly affect performance, especially if your keywords perform differently on mobile vs. desktop.

Test Bid Modifiers for Devices: Increase bids on devices that perform better (e.g., mobile or desktop) and lower bids for devices that don't perform as well.

Monitor Device Performance: Compare how CPC, CTR, conversion rate, and ROAS differ across devices, and use bid adjustments to optimize performance.

Example: You might find that mobile users convert more frequently, so you can increase bids by 20% for mobile devices while lowering bids for desktop if it's underperforming.

6. Monitor Time-of-Day and Day-of-Week Performance
Time-based bid adjustments allow you to optimize your bids depending on when traffic is more likely to convert.

Test Day-Parting: Use bid adjustments based on the time of day or day of the week to optimize for periods when your target audience is most likely to convert.

Historical Data: Analyze historical performance to identify high-traffic times or peak days that drive better results.

Example: If your data shows that conversions are higher on weekends or during certain hours, increase your bids for those timeframes.

7. Utilize Geographic Bid Adjustments
If your campaigns target multiple locations, you can test geographic bid adjustments to see if certain regions perform better.

Test Regional Bidding: Increase bids for regions where your ads are more likely to perform well based on historical data or market conditions.

Monitor Regional Variations: Analyze CPC, conversion rates, and impression share across different regions to determine if specific locations justify higher bids.

Example: If you're running a campaign for a product that is more popular in urban areas, you could increase your bid by 20% for those locations.

8. Test Audience-Based Adjustments
If your campaigns have audience targeting (e.g., remarketing or in-market audiences), consider testing bid adjustments for different audience segments.

Adjust for High-Intent Audiences: Increase bids for remarketing lists or high-intent audiences that are more likely to convert.

Test Audience-Specific Bidding: Different audiences may require different bid strategies, such as increasing bids for an audience that is more likely to purchase or lowering bids for less-engaged users.

Example: Increase bids by 30% for people who have previously visited your website or abandoned their shopping cart.

9. Track Key Metrics
Throughout your testing, track key metrics to assess the effectiveness of each bid adjustment strategy:

CTR (Click-Through Rate): Indicates how well your ads are resonating with users.

CPC (Cost Per Click): Shows the efficiency of your bidding strategy.

Conversion Rate: Measures how well the keyword is converting into desired actions (e.g., purchases, form submissions).

CPA (Cost Per Acquisition): Helps you understand the cost of acquiring a customer with each bid strategy.

ROAS (Return on Ad Spend): Evaluates the return relative to your ad spend.

Analyze these metrics regularly to identify which bid adjustments are producing the most favorable results for each goal.

10. Adjust Based on Results
Once you've collected enough data from your tests, analyze the results and make adjustments accordingly. Focus on the strategies that yield the best performance in line with your goals.

Scale Winning Strategies: If a certain bid adjustment strategy is significantly outperforming others, consider scaling it up across the campaign or applying it to other keywords.

Pause Underperforming Strategies: If a certain bid strategy is not meeting expectations, pause it and consider re-testing with different bid modifications or a new approach.

Example: If Target CPA bidding leads to a significant reduction in cost per conversion while maintaining a healthy ROAS, you can apply it across all your keywords, scaling the bids as necessary.

Conclusion
Testing different bid adjustments involves systematically trying out multiple strategies, tracking performance data, and analyzing the impact of each change. Whether you're testing different bid strategies, adjusting for devices, location, or time of day, it's important to follow a structured testing approach to identify the optimal bidding strategy for each keyword. By continuously monitoring, analyzing, and adjusting, you can ensure that your Bing Ads campaigns are performing at their best, driving more conversions, and maximizing your ROI.