How do you balance between bidding aggressively to gain visibility and bidding c

Started by x51bg, Jun 24, 2024, 03:42 AM

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x51bg

How do you balance between bidding aggressively to gain visibility and bidding conservatively to control costs?

SeoGuru

Balancing aggressive bidding for visibility and conservative bidding to control costs is a bit of an art-meets-science move—it really comes down to your goals, margin tolerance, and how mature your campaigns are.

Here's a practical framework to help you strike that balance:

🎯 1. Align Bidding to Campaign Objectives
Different goals = different levels of aggressiveness:

Brand Awareness / Launch Campaigns → Bid more aggressively (Max Clicks or Target Impression Share)

Performance / ROI-Driven Campaigns → Bid conservatively (Target CPA or Target ROAS)

👉 Tip: You can be aggressive and still ROI-conscious—just define acceptable thresholds.

💰 2. Know Your Numbers
Before you set a bid strategy, you need:

Break-even CPA / ROAS (based on margins, LTV)

Customer lifetime value (LTV) – can justify higher initial spend

Conversion rates by funnel stage – helps adjust bids based on where the keyword or audience sits

👉 Tip: Build a bid ceiling based on margin, then layer in performance to adjust dynamically.

🧠 3. Let Smart Bidding Do the Heavy Lifting (With Guardrails)
Use automated bidding with constraints:

Target CPA: Keeps costs in check while seeking volume

Target ROAS: Maximizes value with efficiency

Portfolio Bids: Group campaigns by performance tiers to balance risk vs. reward

👉 Tip: Use shared budgets and portfolio strategies to shift budget between aggressive and conservative campaigns automatically.

🔍 4. Segment Campaigns Strategically
Break out campaigns by:

Keyword intent (e.g., high vs. low)

Audience type (e.g., warm vs. cold)

Device or geo (performance may vary by mobile/desktop or region)

Then:

Bid more aggressively on high-intent or high-LTV segments

Pull back on lower-intent or test groups until they prove performance

📊 5. Monitor Marginal Cost of Conversions
Look at incremental CPA or ROAS as you scale:

Ask: "Is paying more actually getting me more value?"

Diminishing returns often creep in—higher bids can mean worse cost efficiency

👉 Tip: Use budget simulators or tools like SA360 to test "what if" bidding scenarios.

🔄 6. Implement Dynamic Rules or Automation
Set automated rules like:

Pause or lower bids if CPA > threshold

Increase bids when conversion rate improves or ROAS spikes

Boost bids for high-performing hours/days (dayparting)

⚖️ Real-World Balance Example
Let's say you're running an e-commerce store:


Campaign Type   Strategy
Branded Search   Conservative (Manual / Target CPA)
Non-Brand High Intent   Aggressive (Target ROAS, custom audiences)
Prospecting (Display/Social)   Controlled aggression (Max Conversions with cap)
Remarketing   Aggressive (highest ROI, known audience)
🚨 Final Thought:
Think of bidding like investing:

Core investments (high ROAS, proven campaigns) → conservative, protect returns

Growth investments (new markets, new keywords) → aggressive but monitored closely

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