4 Bid Modifiers You Should Be Using in Your PPC Campaigns

Collin Young June 9th, 2016
paid search bid modifiers

In the second post of our ongoing paid search series, The frank Agency paid search team shares some insights into bid modifiers and how we use them to increase the effectiveness of our clients’ paid search campaigns. To learn more about other paid search methods we use to generate results for our clients, check out the first post of the series – and stayed tuned for more four posts with even more insightful information!

“Yes, I love technology
But not as much as PPC
But I still love technology
Always and forever.”

So maybe those aren’t the famous words that Kip sang to LaFawnduh at their wedding in Napoleon Dynamite. These lyrics, however, ring more true to us at The frank Agency.

In the second post of our ongoing paid search series, we want to “get nerdy” for a little bit and talk about PPC bid modifiers, Napoleon Dynamite, and of course, technology.

Using Data to Drive Conversions

We increasingly have more data available – and we continue to find new ways to use this data in regards to paid search optimization. This data not only tells us who our target customers are (age, sex, location, etc.), but can also help us identify when those customers are most likely to convert. We can even take it a step further and identity whether our target customers convert better on desktop computers, mobile devices (smartphones) or tablets.

At first glance we might look at this and say, “Yeah, that’s great – but how can that benefit my paid search campaign?” Well, buckle up, because we’re about to explore four data-driven modifications that we use here at The frank Agency to change the way your paid search campaigns perform for the better.

Concepts are always easier to understand with examples, so I’ve illustrated each type of modifier with a real-life example – and for the sake of consistency (and to go along with this great Napoleon Dynamite theme I’ve started) let’s say that I am the owner of an online Napoleon Dynamite merchandise store who is running paid search ads to promote his products.

Geo Bid Modifiers

When looking at my sales, I notice that out of the 50 states I run my PPC ads in, I sell an overwhelming amount of merchandise in Idaho and Washington with a great cost per sale – but my sales are low in Georgia and South Carolina with a very high cost per sale. With this information, I know that (for some reason) people in Idaho and Washington like Napoleon Dynamite a lot more than people in Georgia and South Carolina.

Based on this information, I have decided that I am going to introduce some geo bid modifiers to my campaigns. I am going to increase my bids 30% in Idaho and Washington, while decreasing my bids by 15% in Georgia and South Carolina. With these changes in place, I can spend more money where I know I can generate more sales, and less money where there is less interest in Napoleon Dynamite merchandise.

Day/Time Bid Modifiers

Looking at the same sales sheet, I can tell that my cost per sale is at its best between 8pm-10pm – but is very high from 7am-11am. I know that it is smart to spend less money during my worst-performing time, so I decrease my bid by 10% during the 7am-11am time period. At the same time, I know that I want to spend more money during my top-performing time period, so I decide to increase my bid by 15% during the 8pm-10pm time period.

Let’s take this another step further. On top of seeing what times of day perform best, I also know that Fridays have a much better cost per sale than any other day. Based on that information, I am going to increase my bids by 5% on Friday. With these modifications in place, I now know that I am spending my money efficiently at the peak performance times of day and days of the week.

Device Bid Modifiers

Since this is 2016, I know that most people are now making a lot purchases – such as purchases of Napoleon Dynamite memorabilia – using their mobile devices. Looking at my sales, I can see that my mobile cost per sale is half of what my desktop cost per sale is. This is something I definitely want to take advantage of. Currently we can make mobile bid modifications, but in the near future (we expect in the second half of 2016), we will be able to modify bids by each device type (desktop, mobile and tablet.) Once this rolls out, I am going to decrease my desktop bids by 50% and increase my mobile bids by 25% to take advantage of the best-performing traffic. Let’s get these people their Napoleon Dynamite commemorative Chap-Stick!

Demographic Bid Modifiers (Not live yet)

After reviewing all the sales that I made last year, I saw that roughly 90% of my sales came from males ages 18-35. In the future, I will be able to modify my bids so I spend more money on that specific demographic, and reduce my bids on demographics of people that aren’t Napoleon Dynamite fans.

Modify Your Marketing Plan Today!

By examining the data and making changes to these different bid modifiers, we can craft the best possible strategy to make any paid search campaign more profitable. If you are looking for a paid search agency to help increase your conversions, contact The frank Agency today. We have the tools and the expertise to make all your wildest business dreams come true.

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