How does Adference Bid Management calculate bids?
Adference performs complex bid calculations combining several factors to reach highly accurate answers to questions such as: How will conversion rates develop in the future, and how large are expected basket values? Adference Bid Management calculates those factors by using data from the past 365 days, which allows Adference to reliably make precise predictions unusually early. If not enough historical data is available, then our system expands its data basis by including information from the Google Ads account structure and from user behavior in the form of onsite data, all of which factor into bid calculations.
Which accounts does Adference Bid Management work best with?
Google Ads accounts with little historical data—for example, in the long tail—often do not offer enough information to calculate reliable bids. Luckily, that lack of data is our strength, because Adference exploits a learning effect. If keywords and products behave similarly, then each learns from the experience of the other. In that way, an individual keyword’s history fills up much faster and can be used as a robust basis for calculating conversion rates.
What changes does Adference make in my Google Ads account?
Adference sets maxCPCs to the exact amount that users need to maximize the return from campaigns or the number of conversions. To do that, Adference sets bidding in your Google Ads account to manual CPC for all campaigns optimized by Adference. Additionally, Adference sets device modifiers in Google Ads as long as they are not set to -100%.
How often does Adference update bids?
Adference changes bids once a day. Usually around 3 o’clock in the morning.
Do I have to set different targets for different devices?
No. Just set your target in the campaign or in the ad group. The tool draws on performance data in order to calculate exact bids for the three device types.
How does the tool deal with exceptionally high or exceptionally low values?
If enough data is available that lies within a known corridor, then the tool will consider an exceptional number of conversions or an exceptionally high basket value as an outlier in the data. The outlying values will not influence bid calculations.
I use bid adjustment tools other than Adference. How will the tool deal with them?
Naturally, any bid adjustments carried out by a different system will have an impact on subsequent calculations the Adference tool makes. It would be best if you discussed the use of other bid adjustments with Adference before activating them.
I would like to optimize an additional account. What do I need to do?
If you would like to optimize more than one account with Adference, simply let your account manager at Adference know. We will set up another Adference account for you using your 10 digit Google Ads Customer ID. The tool will allow you to swap between the two or more accounts.
How often do I need to readjust my optimization targets?
Technically, adjusting targets it not necessary. We recommend changing them, whenever your economic goals change. Also, if you observe drastic changes in campaign performance, adjusting your targets might be a good idea. If you are not sure whether changing your targets makes sense in your situation, don’t hesitate to contact your account manager at Adference.
How does the tool deal with seasonal fluctuations?
The algorithm behind the tool analyzes data from the past 365 days, with data from the past 7 days making up about 80% of the information used in calculating bids. Putting the focus on the recent past allows our tool to react to seasonal fluctuations around Christmas, Easter and other holidays quickly. For more information, read our blogpost on seasonal effects in AdWords.
Does Adference Bid Management automatically use a different plan for Black Friday?
No, because there are not any clear signs for our tool to anticipate Black Friday or other days with high sales volumes. Please contact your account manager at Adference to discuss options for days with unusual sales volumes. Additional information is available at our blogpost on seasonal effects in search engine advertising.
I would like to add keywords or products to an existing ad group. Which target should I set at the start of optimization, and is there anything else that I should consider?
Keywords and products without data are treated differently than keywords and products with extensive historical records. As such, every new element has the chance to prove itself. If a keyword or product is added to a group of high performers, then Adference Bid Management assumes that new keywords and products are as strong as other elements in the group and sets high initial bids. We recommend choosing an initial target that is similar to other bids in the ad group.
Does Adference pause low-performing products or keywords?
No. Adference Bid Management neither pauses nor excludes any keywords or products. However, bids for weaker keywords and products are usually extremely low so that they do not accrue additional costs.
I would like to start a new campaign. Can I optimize the new campaign with Adference immediately?
Depending on the traffic volume of your site and the amount of data to be collected, we recommend beginning the optimization of new campaigns with Adference about 1–4 weeks after activation. In most cases, we will have enough data by that point to make reliable calculations.
How quickly does Adference adjust bids?
Adference Bid Management changes bids at a maximum of 25% per day. If a user changes the target value for more than 25%, then the tool will skip the 25% limit the following day and allow larger changes.
Does Adference use a portfolio approach?
Yes. The portfolio approach is activated at the account level by default. It redefines the range for keyword bids and product bids. For instance, it allows high-performing keyword bids and product bids to lie above the set target if the campaign is performing better than the target requires.
What happens if a campaign’s performance misses its target by a considerable amount?
If a campaign is well beyond its target, then a mechanism is automatically triggered in Adference Bid Management that will attempt to achieve the optimization target as quickly as possible. To do that, it gives preferential treatment to keywords and products that contribute to reaching the goal. Bids for weak or shaky keywords and products will not be raised and could even be lowered. As soon as the campaign reaches its goal, the tool will revert to standard optimization.
How does Adference Bid Management deal with daily budget limits?
Campaigns in Google Ads regularly reach their daily budget limit for several reasons Adference Bid Management reacts to budget limitations by considering lower bids if doing so allows the advertiser to participate in more auctions over the course of a day, which helps to make the most of the budget. For more information on that feature, please access our blogpost on optimizing campaigns with limited Google AdWords budgets. The disadvantage of limited daily budgets is that fewer conversions can be bought than would be possible within the set target. We recommend working with open budgets to generate as many conversions as possible, as long as the campaign is on target.
Can I adjust maxCPCs myself?
Generally speaking, it is neither necessary nor helpful to adjust maxCPCs manually. In calculating bids, Adference considers the bid placed on the previous night, the actual cost per click, and the difference between the values. Accordingly, manually changing the maxCPCs would significantly affect the next day’s bid. For that reason, we generally advise against changing maxCPCs manually. We would be happy to advise you concerning possible exceptions to that general recommendation.
I've defined an individual ad group target, but now I would like to re-activate campaign targets for my ad groups.
Quickly changing your strategy at the campaign level will do the trick. If you change your campaign target from a CRR target into a CPA target, or vice versa, your ad groups will be ready to inherit your campaign target. All you need to do now is define your desired CPA or CRR target for your campaign.