Do more With Optmyzr #1: Automate Tiered Bidding Management
“Stacked bidding” or “Tiered Bidding” is a strategy in which the same keyword is added in multiple match types to better control costs. The closer a query is to a keyword, the higher the chance that it could lead to a conversion, hence the more an advertiser is willing to spend.
Looks Simple, Where’s the Catch?
For this strategy to work, you need to keep the bids for each match type somewhat surrounding the same amount. For example, and as Frederick Vallaeys explained on this article from Search Engine Land, “if the exact match keyword’s max CPC is $1.00, the advertiser may want to bid 80 percent (or $0.80) for phrase match and 60 percent (or $0.60) for broad or modified broad match”.
The problems with tiered bidding usually result from when the bid is modified for one keyword, but not for its match type counterparts. This results in a confusing and very problematic issue, as the tiered bidding is no longer in place and you might end up with bids that you aren’t controlling, or which slip off your radar.
How to Successfully Manage Tiered Bids
At Optmyzr we’ve come up with a solution that puts together a custom recipe from our Rule Engine, its very own spreadsheet capability, an enhanced script, and automation, to create a hassle-free workflow for tiered bid management.
To get started, you’ll first need to use our Stacked Bids enhanced script, to define the ratio which you’d like to maintain between the different bids for the keywords in multiple match types. With this script, a spreadsheet will be generated with a list of keywords existing in multiple match types. By running this script regularly, you can find keywords in multiple match types with their current and expected bids.
After you’ve set this up, you can pull the same spreadsheet into the Rule Engine and create rules as shown below. These rules will let you set the bids for Phrase match and Broad match keywords to 80% and 60% of the Exact Match CPC respectively.
The output of this recipe will give you a list of suggestions of keywords added in multiple match types and the calculated new bids for them to maintain tiered bidding.
For example, you can find any Phrase match keyword which has its current bids higher than their Exact match type counterparts and set their bids to say 60% of the Exact Match keywords Max CPC (this will be automatically pulled in the spreadsheet).
With the Rule Engine’s automation capability, you can set this recipe to be run on a weekly basis and make sure your tiered bids are all set in place!
This custom solution was made using Optmyzr’s Rule Engine and Enhanced Scripts. If you need us to put this recipe in your account, please write to firstname.lastname@example.org and we’ll be more than happy to do so!