We’ve all had the painful experience of logging into an AdWords account and seeing those 3 bright orange words jump out at us: “Limited By Budget.” It’s as if Google is telling us we’re doing something wrong, or that there’s an error in our campaigns.
With the recently released Enhanced Campaigns in Google AdWords, advertisers will be able to automatically increase or decrease bids based on device, geography and time of day or time of week, and based on the business’ goals. Automatically adjusted bids can be multiplied from negative 100% to 300%.
For example, a business knows that their mobile paid search traffic has a higher conversion rate, but not in New York City, and is more likely to perform during office hours of 9am to 5pm. In this case, the advertiser can bid a higher percentage for mobile devices, less in New York City, and more during 9am to 5pm by adjusting cost-per-click (CPC) bids within the same campaign based on device, location and time. These stacked bid adjustments will be multiplied together to reach the final bid adjustment percentage. So, if the advertiser chooses to bid 120% for mobile devices, -50% in New York City and 260% during 9am to 5pm, when all criteria has been met, the final bid adjustment would be (1.2 x .5 x 2.6) 1.56% of the original CPC bid.
By automatically adjusting CPC bids, advertisers will be able to allot more time to identify points of optimization rather than creating numerous campaigns to find targeted users.