Introducing Bid Recommendations in Bing Ads | #ppc #sem #advertising

Purchasing a house and getting clicks share a same best practice: “Location, Location, Location”.  For real estate, it means identical homes can increase or decrease in value due to location; for online advertising, it means identical ads can increase or decrease in clicks due to location.  A recent search engine marketing study shows that 85% of clicks happen in the mainline location and 13% in the sidebar location.  More importantly, almost 60% of clicks are collected by ads shown at the top of the mainline location.

 

We have seen similar results from internal studies.

 

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To get your ads into a better location and, hopefully, collect more clicks, you need to focus on two tasks:

1) Keep improving your keywords’ Quality Score.  The best practices are available on the following posts:

2) Bid competitively.  A good way to assess bidding competition is referencing the newly released Bid Recommendation function.  Following is an overview of this new function and its best practices

    •  Suggestions from Bid Recommendation – If sufficient data is available, Bid Recommendation provides bid suggestions for three different locations on the first page of search result. 

Name of the Output

Targeted Location

Best Position Bid

The top of the mainline location

Mainline Bid

The bottom of the Mainline location

First Page Bid

The bottom of the sidebar location

 

    • How are the recommendations being generated?
      • For existing keywords registered in your campaigns, the recommendations are based upon an on-going marketplace analysis for the past 7 days and your keyword performance record.
      • For new keywords you are adding to your campaigns, the recommendations are based upon an on-going marketplace analysis for the past 7 day
  • How to access Bid Recommendation

For adding new keywords:

Web UI users: the bid recommendations are provided as you add each new keyword. In addition to the “Custom bid” and “Ag group bid” you’ve seen in the past, there are now new options, letting you select one of the position bids l just listed

API users: Bid Recommendations are provided via GetEstimatedBidByKeywords service at http://msdn.microsoft.com/en-US/library/gg986836.aspx

 

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For managing existing keywords:

Web UI & Bing Ads Editor users: click the Estimation button on the keywords tab of the Campaigns page

API user:  Bid Recommendations are provided via GetEstimatedBidByKeywordIds service at: http://msdn.microsoft.com/en-US/library/gg712218.aspx

 

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  • Best Practice of adopting Bid Recommendations
    • The recommendations are based upon historical data. You need to also consider future marketplace dynamics that might impact your bids
    •  Recommendations for the new keywords are based upon the general marketplace competition only. Check their recommendations again after having activated them for a week.  You will receive more specific bidding guide reflecting observed strength for those keywords.
    • If bid recommendations are not available, a good starting bid is $0.30 which could get you into mainline location or top of sidebar location.

As houses built in good locations have a higher return in investment, ads shown in good locations have a higher click through rate (CTR) and a lower cost to serve.  Leveraging Quality Score to optimize your campaign performance and adjusting their bids accordingly via Bid Recommendation will get you the best seat in the house!

 

Ping Jen

Product Manager of Yahoo! Bing Network

 

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