How do you use historical keyword performance data to inform future bid adjustments?

Using historical keyword performance data is essential for informing future bid adjustments in Bing Ads or any other advertising platform. By analyzing past performance, you can identify trends, patterns, and opportunities that allow you to optimize bids and improve the effectiveness of your campaigns. Here's a step-by-step process on how to leverage historical keyword performance data for bid adjustments:

1. Analyze Keyword Performance Metrics
Start by reviewing the key performance metrics associated with each keyword in your campaign. These metrics typically include:

Impressions: The number of times your ads were shown for a keyword.

Clicks: The number of times users clicked on your ad after seeing it.

Click-Through Rate (CTR): The percentage of people who clicked on your ad after seeing it. High CTR generally indicates that the keyword is relevant.

Cost-Per-Click (CPC): The average amount you're paying for each click.

Conversion Rate: The percentage of clicks that lead to conversions (sales, sign-ups, etc.).

Cost-Per-Conversion (CPA): The cost to acquire a single conversion for that keyword.

Return on Ad Spend (ROAS): The revenue generated per dollar spent on ads for that keyword.

Quality Score (if available): A metric from Bing Ads that considers factors like CTR, ad relevance, and landing page experience.

By analyzing these metrics over time, you can identify which keywords are driving high-quality traffic and conversions, and which ones are not performing as expected.

2. Identify High-Performing Keywords
Look for Consistent Converters: Keywords that consistently lead to high conversion rates and low CPA are valuable. These keywords likely represent your best-performing search terms and should be targeted more aggressively in future campaigns.

Monitor ROAS and Cost Efficiency: If certain keywords provide a high ROAS (revenue per ad spend) or drive cost-effective conversions, you should consider increasing bids to maximize exposure and traffic for those keywords.

Evaluate Historical Trends: Analyze how performance has evolved over time. If a keyword has shown consistent improvement in CTR, conversion rate, or ROAS, it may indicate a keyword that is becoming more valuable and warrants a higher bid to scale further.

3. Identify Underperforming Keywords
High CPC with Low Conversions: Keywords with high CPC but low conversions should be closely examined. These might indicate that the keyword is too competitive or irrelevant to your audience. Consider lowering the bid or pausing the keyword entirely if it's costing too much without delivering returns.

Low Conversion Rate: Keywords with a low conversion rate may need a bid reduction or a re-evaluation of their targeting settings. This could mean adjusting your ad copy, landing pages, or overall targeting strategy for those keywords.

Negative Keywords: Some underperforming keywords may generate high traffic but no conversions. These keywords can be added to your negative keyword list to prevent further wasted spend.

4. Use Bid Adjustments Based on Performance
Based on the historical performance data of keywords, you can implement targeted bid adjustments:

Increase Bids on High-Performing Keywords: If a keyword has a high conversion rate, low CPA, and/or high ROAS, consider increasing the bid for that keyword to gain more traffic. You may want to raise bids by 10%-20% for those keywords to secure more impressions and clicks.

Decrease Bids on Underperforming Keywords: If a keyword is consistently underperforming (low conversion rate or high CPA), consider lowering the bid to reduce waste. For example, lowering the bid for non-converting keywords may help reduce cost without affecting overall performance.

Use Bid Modifiers for Specific Time/Device Segments: Historical data can reveal trends in specific segments. For example, if certain keywords perform better on mobile devices or during specific hours of the day, you can apply device-based bid modifiers or time-of-day bid adjustments to optimize performance.

Implement Seasonal Adjustments: If you notice that some keywords perform better during certain seasons or events (e.g., holidays, sales), you can increase bids ahead of time during those periods based on historical trends.

5. Segment Data by Match Type
Broad Match vs. Exact Match: Keywords with different match types (broad, phrase, exact) will often have different performance profiles. For instance, exact match keywords generally provide more qualified traffic, while broad match keywords may attract irrelevant clicks. Review historical performance for each match type and adjust bids accordingly.

Long-Tail Keywords: Long-tail keywords often have a lower CPC and can result in higher conversion rates due to their specificity. If historical data shows good performance for these types of keywords, increasing their bids could help capture more targeted traffic.

6. Consider Competitor Performance Data (If Available)
Benchmarking: Some third-party platforms or tools can help you compare your keyword performance against industry benchmarks or competitor data. If your keyword performance is significantly below industry standards, it may indicate the need for bid adjustments or optimizations.

Adjust for Competition: If a keyword becomes more competitive over time, historical data can help you anticipate when to increase bids to maintain your ad position.

7. Leverage Historical Data for Predictive Analytics
Trend Analysis: Using past performance data, you can predict future trends and adjust your bids proactively. For example, if a certain keyword has shown a consistent upward trend in performance, it might be worth increasing the bid in anticipation of continued success.

Forecast Future Traffic & Conversions: Many advanced third-party bid management platforms use machine learning and predictive analytics to forecast future performance based on historical keyword data. These forecasts can inform bid adjustments by estimating how keywords will perform in the coming days or weeks.

8. A/B Testing for Bid Adjustments
Test Bid Variations: Use A/B testing (split testing) to experiment with different bid strategies for high-performing keywords. By testing different bid amounts or bid strategies (e.g., manual vs. automated), you can find the optimal bid for maximizing performance.

Experiment with New Keywords: Based on historical keyword performance, you can identify opportunities to introduce new keywords and test them in your campaign. Historical data will guide your decision to bid higher on newly identified high-potential keywords.

9. Monitor External Factors
External factors, such as changes in market trends, consumer behavior, or seasonality, can influence keyword performance. It's important to continuously monitor external factors and adjust bids accordingly. Historical performance data can act as a baseline to gauge the impact of such changes.

10. Set Up Automated Bid Strategies (If Available)
Many third-party platforms and even Bing Ads' native automated bidding tools can use historical performance data to automatically adjust bids in real-time. For example, Bing Ads' Maximize Conversions or Target CPA bidding strategies can automatically adjust bids based on historical conversion data.

Conclusion
By analyzing historical keyword performance data, you can make informed decisions about bid adjustments in Bing Ads to maximize your campaigns' efficiency and ROI. Historical data helps you identify high-performing keywords to bid more aggressively on, while flagging underperforming ones that may require bid reductions or removal from your campaigns. This data-driven approach allows for continuous optimization, ensuring that your campaigns remain competitive and cost-effective over time.