How can advertisers use conversion tracking to adjust their bidding strategy on Bing Ads?

Advertisers can use conversion tracking in Bing Ads to adjust their bidding strategy by gathering data on how well their ads are driving valuable actions, such as purchases, sign-ups, or other defined conversions. Here's how they can use this information to refine their bidding strategy:

Track Conversion Data: First, advertisers need to set up conversion tracking by adding a conversion tracking tag to their website or app. This will enable Bing Ads to monitor actions taken by users after interacting with an ad.

Analyze Conversion Performance: Once conversion data starts flowing in, advertisers can assess which keywords, ads, and targeting settings are leading to the most conversions. This helps identify the most valuable areas of their campaigns.

Use Smart Bidding Strategies: Bing Ads offers Smart Bidding options, such as Target CPA (Cost per Acquisition) or Target ROAS (Return on Ad Spend), that leverage conversion data to automatically adjust bids. Advertisers can use these strategies to optimize their bids for conversions.

Target CPA: This strategy automatically adjusts bids to help advertisers get as many conversions as possible at the target cost per acquisition. If conversion tracking shows that some ads are achieving conversions at a lower cost, the system may increase bids to capture more opportunities, while cutting back on higher-cost keywords that aren't delivering conversions.

Target ROAS: This strategy optimizes bids to achieve a desired return on ad spend. If certain campaigns are leading to higher revenue per click, Bing Ads may increase bids for those campaigns to capture more high-value clicks.

Adjust Manual Bidding Based on Performance: For advertisers using manual bidding, conversion data can inform adjustments to bids at the keyword or ad group level. For instance, if certain keywords are producing high conversion rates, advertisers might increase bids for those keywords to gain more visibility. Conversely, they may decrease bids for keywords with low conversion rates.

Bid Adjustments for Device, Location, and Time of Day: Conversion data can also be used to adjust bids based on device, location, and time of day. If conversions are more likely on mobile devices or in certain geographic locations, advertisers can increase bids for those segments to maximize return.

Refine Audience Targeting: With conversion tracking, advertisers can identify high-performing audience segments. They can then adjust bids or allocate more budget to these segments, while reducing spend on underperforming segments.

Create Custom Conversion Goals: Bing Ads allows advertisers to set up specific conversion goals (like purchases or form submissions). By tracking how these goals perform, advertisers can better align their bidding strategy to focus on achieving the most valuable actions.

By leveraging conversion tracking, advertisers can make more informed decisions, ensuring that their bids are focused on the most profitable aspects of their campaigns, optimizing for the highest return on investment (ROI).