Bid Management Mistakes Costing Your Marketing $$$

Common Bid Management Mistakes to Avoid

Effective bid management is the backbone of successful digital marketing campaigns. But, all too often, marketers stumble into easily avoidable traps, squandering budget and missing opportunities. Are you unknowingly sabotaging your campaigns with these common bid management blunders?

Ignoring Match Types

One of the most fundamental, yet frequently overlooked, aspects of bid management is understanding and correctly implementing keyword match types. Using broad match keywords exclusively is like casting a net into the Atlantic Ocean and hoping to catch a specific type of fish. You might catch something, but it’s likely to be a lot of seaweed and unwanted bycatch. Instead, focus on phrase match and exact match keywords to target specific search queries and improve the relevance of your ads. This precision directly impacts your Quality Score and ultimately reduces your cost per click (CPC).

I remember a client, a local bakery in Buckhead, Atlanta, who was running a Google Ads campaign targeting “bakery” as a broad match keyword. They were getting tons of clicks, but very few conversions. After auditing their search term report, we discovered they were showing up for searches like “bakery equipment,” “bakery supplies,” and even “bakery jobs.” By switching to phrase match (“Atlanta bakery”) and adding negative keywords, we drastically improved their conversion rate and reduced wasted spend. Don’t make the same mistake; take control of your targeting.

Prematurely Automating Bidding

The allure of automated bidding strategies is undeniable. Who wouldn’t want a machine learning algorithm to handle the complexities of bid management? However, jumping into automated bidding before you have sufficient conversion data is a recipe for disaster. Think of it like this: the algorithm needs fuel (data) to learn and optimize. Without it, it’s just guessing. Google Ads, for example, offers several automated bidding options, such as Target CPA (cost per acquisition) and Target ROAS (return on ad spend). But these strategies are most effective when you have a substantial history of conversions, typically 30-50 conversions per month, per campaign.

Before implementing automated bidding, focus on manual CPC bidding to gather data and establish a baseline. This allows you to understand your conversion rates, cost per acquisition, and other key metrics. Once you have enough data, you can then transition to automated bidding with confidence. Remember, automation is a tool, not a magic bullet. It requires careful planning and execution to be effective. Also, don’t set unrealistic targets. A Target CPA that is significantly lower than your historical CPA is unlikely to be achieved and could negatively impact your campaign performance.

Ignoring Search Term Reports

Your search term report is a goldmine of information about the actual search queries that are triggering your ads. Neglecting this report is like ignoring customer feedback – you’re missing out on valuable insights that can help you refine your targeting and improve your campaign performance. Regularly auditing your search term report allows you to identify irrelevant or low-performing search queries and add them as negative keywords. This prevents your ads from showing up for these queries, saving you money and improving the relevance of your traffic.

Imagine you’re running a campaign for a personal injury law firm near the intersection of Peachtree Road and Lenox Road in Atlanta. You might be targeting keywords like “car accident lawyer Atlanta.” However, your search term report reveals that you’re also showing up for searches like “car accident lawyer free consultation online.” If you don’t offer online consultations, you should add “online” as a negative keyword. Similarly, if you’re only serving clients in Fulton County, you might want to add negative keywords for surrounding counties like Cobb or DeKalb. Regularly reviewing and acting on your search term report is essential for effective bid management.

The Power of Negative Keywords

Speaking of negative keywords, let’s emphasize their importance. There are three types of negative keywords: broad, phrase, and exact match, each offering different levels of control. Negative broad match prevents your ad from showing if the search query contains all the words in your negative keyword, in any order. Negative phrase match prevents your ad from showing if the search query contains the exact phrase, in the same order. Negative exact match prevents your ad from showing only if the search query exactly matches your negative keyword.

For example, if you’re selling new cars and want to avoid showing up for searches related to used cars, you could add “used cars” as a negative phrase match keyword. I had a client last year who was running a campaign for a luxury apartment complex in Midtown Atlanta. They were getting a lot of clicks from people searching for short-term rentals, which they didn’t offer. By adding “short term rental” as a negative phrase match keyword, they were able to significantly reduce wasted spend and improve the quality of their leads. Don’t underestimate the power of negative keywords; they are your secret weapon against irrelevant traffic.

Lack of Geo-Targeting and Dayparting

Effective bid management isn’t just about keywords; it’s also about targeting the right audience at the right time and in the right location. Neglecting geo-targeting and dayparting is like leaving money on the table. Geo-targeting allows you to restrict your ads to specific geographic areas, ensuring that you’re only showing your ads to potential customers who are within your service area. Dayparting allows you to schedule your ads to run during specific times of the day or days of the week, based on when your target audience is most likely to be online and receptive to your message.

Let’s say you’re running a campaign for a 24-hour emergency plumbing service in Atlanta. You’d want to geo-target your ads to the Atlanta metropolitan area and daypart them to run 24/7. On the other hand, if you’re running a campaign for a lunch special at a restaurant in the downtown business district, you’d want to geo-target your ads to that specific area and daypart them to run during lunchtime hours. We ran into this exact issue at my previous firm; we were managing a campaign for a law firm that specialized in workers’ compensation claims under O.C.G.A. Section 34-9-1. We noticed that a significant portion of their leads were coming in during the late evening hours, even though their office was closed. By dayparting their ads to run only during business hours, we were able to improve their lead quality and reduce wasted spend. It’s all about being strategic and data-driven.

Not Testing Ad Copy and Landing Pages

Your ad copy and landing pages are the first impression you make on potential customers. If they’re not compelling and relevant, you’re likely to lose them before they even have a chance to learn more about your business. Failing to A/B test different ad copy variations and landing pages is a major bid management mistake. Testing allows you to identify what resonates with your target audience and optimize your campaigns for maximum performance. A/B testing involves creating two or more versions of an ad or landing page and then tracking which version performs better in terms of click-through rate (CTR), conversion rate, and other key metrics.

For example, you could test different headlines, descriptions, or calls to action in your ad copy. On your landing pages, you could test different layouts, images, or offers. I recommend using the “Ad variations” feature in Google Ads to easily create and test different ad copy variations. For landing page testing, tools like VWO or Optimizely can be invaluable. Here’s what nobody tells you: testing is an ongoing process, not a one-time event. You should constantly be testing new ideas and iterating on your best-performing ads and landing pages to stay ahead of the competition.

A IAB report highlights the importance of continuous testing in digital advertising, noting that companies that prioritize testing and optimization see significantly higher returns on their ad spend.

If you are looking to improve your campaign performance, consider ways to double clicks and cut waste with smart ad copy.

Case Study: Revitalizing a Struggling E-Commerce Campaign

We recently worked with a fictional e-commerce client, “Atlanta Art Supplies,” selling art materials online. Their Google Ads campaign was struggling; they were spending $5,000 per month but seeing minimal sales. After conducting a thorough audit, we identified several of the mistakes outlined above. First, they were using primarily broad match keywords, resulting in irrelevant traffic. Second, they were relying solely on automated bidding without sufficient conversion data. Third, they were neglecting their search term report and not adding negative keywords. Finally, they weren’t testing their ad copy or landing pages.

Over a three-month period, we implemented the following changes. First, we switched to phrase and exact match keywords, focusing on specific product categories and brands. Second, we paused the automated bidding and switched to manual CPC bidding to gather data. Third, we diligently reviewed the search term report and added hundreds of negative keywords. Finally, we created multiple ad copy variations and landing pages and began A/B testing. After three months, the results were dramatic. Their conversion rate increased by 250%, their cost per acquisition decreased by 60%, and their overall sales increased by 180%. By avoiding these common bid management mistakes, we were able to turn their struggling campaign into a profitable one.

Effective bid management requires constant vigilance and a willingness to adapt to changing market conditions. Don’t fall into these common traps; instead, embrace a data-driven approach and continuously optimize your campaigns for maximum performance.

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Don’t let these common bid management errors drain your marketing budget. Take decisive action today: audit your campaigns, implement these corrections, and unlock the true potential of your advertising efforts. Which single mistake will you fix first?