Common Mistakes In Automated PPC Bidding

Automated PPC bidding can be very convenient for internet marketers. There are some people who find success in this type of SEO and marketing approach while others feel underwhelmed. If you find yourself in the latter group, you might be committing some mistakes in your strategy.

Here are possible mistakes you’re probably guilty of doing.

Wrong Bidding Strategy

This is a very issue to avoid but it is unfortunately a very common mistake. The strategy that you choose will determine the KPI that Google needs to hit. If you find yourself being outbid it is possible that your account is not fit for automated bidding.

Make sure you understand all automated bidding strategies by the number before automating your PPC bidding.

Too High Budget

Automated PPC bidding with very high budgets can lose out in automated bidding. Google (and all the other platforms) will always seek out to spend as much of your money. This is bad news if you’re looking for a respectable rate of return.

Also too high of a budget can lead to an inflated CPC which means a decrease in efficiency. Don’t worry about not spending too much because you can always adjust and scale back as your campaigns progress.

Too Low Budget

Having a low budget is also an issue when it comes to automated PPC bidding. First of all, this will lengthen the learning period. Low budgets also lead to inconsistent performance.

When CPA is not hitting the target, low budget is sometimes the reason why campaigns fail to provide efficient conversion.

NO CPC Caps

Google encourages the removal of CPC caps in automated bidding. While CPC is unnecessary if you have a budget and if goals are set properly, it can be a mistake to let robots get free reign. To set CPC caps, go to Tools>Portfolio Bid Strategy.

No Conversion Data

Successful automated bidding relies on consistent and significant data. If your account targets are low volume there is a big chance that you will get poor results.

AdWords suggests at least 15 conversions per month for your campaign. However, it is better to have a higher number since anything below a month-long threshold will lead to improper optimization.

No Patience

Automated PPC bidding is likely to fail because people don’t stick to a strategy long enough to find out what’s working and what’s not. When you flip to a new strategy the algorithm will need time to learn the nuances of your market.

This is why a slow roll-out is needed. Remember that you have goals to hit while your new bidding strategy needs to learn the market. Shifts in budget and bid KPIs will reset the process.

There will always be people who will prefer the tried and tested manual method. However, automated bidding is here to stay. The best advice for automated bidding is to go slowly and to be patient so that you have data you can use to analyze and formulate a better automated bidding strategy.

Do you prefer manual bidding to automated bidding? What is your experience with automated bidding? Tell us by leaving your comments below.

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