• nabeel

    Impressive! Let me ask one point here. When you calculate “Est. add. conversions (+50% bid)”, you take the same conversion rate as it was before the bid changes? I believe bid modifiers do impact ad position and thus conversion rate too, specially for the eCommerce model. Does Adwords take the linear conversion rate or it is also adjusted to applying bid-modifier?

  • Ben Vigneron

    Yes, I apply the same conversion rates when bidding up based on Hal Varian’s findings about conversion rates not varying much with position, see http://adwords.blogspot.com/2009/08/conversion-rates-dont-vary-much-with-ad.html. In all reality though, you might want to be a little bit more conservative and assume conversion rates might decrease by a couple of % especially in non-exact match.

  • Albert Wassink

    I reckon that steps of +50% bids are extremely great and are of no help for most relatively mature accounts. I believe that experimenting with such extreme changes will not be informative and can only hurt the overall performance of your account.. I believe that if you have 12 weeks of history you are better of by changing with more modest steps based on your history. I guess that if you bid +50%, you are likely to pay two times the old price of a conversion and get two times more clicks. Overall spending can increase 4 times, which would not make companies/ managers very happy. I don’t want to start about bidding +300%. What is your opinion? Do you concurr with me?

  • Ben Vigneron

    Agreed, +50% is a huge step, and mostly directional. In practice, you might want to use those data points provided by Google in order to estimate smaller bid increments such as -40/30/20/10% and +10/20/30/40%, but that is definitely more advanced and would require a couple of additional steps including regression analysis.