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Posted on October 8, 2008

Advertisers: Opportunity Knocks

chris
Advertisers: Opportunity Knocks
chris
Posted on October 8, 2008

Decrease Bids to Improve ROAS

Your Adwords CPC prices are set by auction.  What if the economy were slowing?  If 2 of 15 advertisers were to withdraw from your ad space, or slow their ads, then why shouldn’t the results of that be felt in your actual average CPC?  Maybe it can be.  When is the last time you tried DECREASING your Adwords bids?   

Bargain Hunting? Decrease your CPC Bids!

This is not a trivial point.  In our experience, ROAS almost always increases when we decrease bids / ad positions.  If you haven’t tried it lately, you should.

This doesn’t work for all accounts (certainly not for any account which is starved for traffic or disengaged!!!).  Advertisers with accounts in bargain hunting mode (accounts which are spending their daily budgets and displaying ads for a fraction of their potential impressions), can generally improve performance substantially by decreasing bids.

Marginal Advertisers – Below the Fold

If you are a marginal advertiser (struggling to make the economics of Adwords work for you) above the fold, try dropping to the bottom of the first page of the paid search results – a lower CPC will almost certainly improve your economic performance.

Run Bargain & Free Offers Below the Fold

If you are an Advertiser offering bargain basement prices or something free, then try decreasing your bids and dropping below the fold, because shoppers searching for a bargain don’t mind scrolling!

Step, Two, Three, Four

Just imagine if everyone in your ad space were to attempt to advertise below the fold and decresase bids in-step, together!  The bids in your ad space might go into free fall, especially for local advertisers.  If you like this idea, then just send the competitors in your ad space a link to this webpage!!  Maybe they’ll get the hint.

Good Luck.