Set the Bid Strategy

Section 04 - Lesson 10

Choose either automatic or manual bidding.

Microsoft has some of the top AI (artificial intelligence) and machine learning capability in the world. Although it may be good for some purposes, I don’t want “the machine” running my ads on Bing.

I prefer to set my bids, and have Bing use those bids, every time my ads get clicked. I monitor new campaigns every hour or so for the first day, and every 2-3 hours during the first week. After that, I know exactly how much I need to bid, to maintain top spot above the search results.

Other Bing options include having the machine adjust your bids in real time, to get as many clicks as possible, a static cost per customer acquisition, and maximum conversions for the budget. Unless you have massive funds, these options may not be in your best interest.

For example, let's say you have automated bidding activated. A new advertiser comes into the space. They bid insanely high trying to bump you out of top spot. The machine automatically compensates and makes its own high bids to compete. An hour later your daily budget is blown. That’s why I don’t recommend using it.

An interesting feature is what Bing calls CPA (cost per acquisition). It’s basically a 30 day average of what it takes to acquire a new customer. The machine will adjust bids in real time to get you to this average. If you want to test it out, try it on a couple of keywords, or individual ad group, before applying it to a whole campaign.

One of the most important numbers is your DPVV (dollar per visitor value). It’s basically your total monthly sales, divided by your website’s total number of unique monthly visitors. So if you get $12,000 in sales after 10,000 unique visitors, your DPVV average is $1.20. If you run at a 20% profit margin, that backs out to $2,400 net income for you.

If you have to bid higher than the DPVV, you’re either going to lose money, or eat away at your profit margin. Usually it's just a matter of switching to a less expensive WADS, or finding longer tail keywords to bid on.

Expressed another way, just log into the WADS using one browser window, and the affiliate network in another. Look at your ad spend versus commissions earned on any given offer, and make your decisions based on that data.

Your work is going to fill a large part of your life, and the only way to be truly satisfied is to do what you believe is great work. And the only way to do great work is to love what you do.

Steve Jobs

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