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Is anyone using a bid management tool? Report abuse

AdWordsPro Sarah
Google Employee
12/11/08
There was a very interesting post from one of our forum members Shanekkirk asking about people's use of bid management tools. While AdWords has a few features to help with bid management (content/search bidding, ad scheduling etc), we leave a lot of room for third party bid management. If people are using a tool, I would love to hear about your experience. For those of you who chose to go the manual route, what pushed your away from an automated tool? This is a decision many advertisers face- any advice you have would be much appreciated.

Thanks in advance,
AdWordsPro Sarah

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TJ 360Partners
Level 1
12/11/08
We use SearchRev at our agency but only have it implemented for some of our accounts.  Speaking from the perspective as an account manager, thumbs way up.  It simplifies bidding and improves performance slowly over time.  And saves a lot of time on bidding.  Wouldn't recommend using Google's internal bid management because Google is trying to maximize their own revenue, not my client's performance.  We've tried Google's maximizer tool and the results were not favorable. 

Trade off is the cost of bid management software.  Typical fees are on a % of ad spend so it cuts significantly into the bottom line of the agency.  But for most accounts, especially ones with high CPC, we trust bid management tools more than human management. 
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shaneekirk
Level 3
12/11/08
I love, love, love Google's interface!  It's great and gives plenty of options.  What I *don't* like is when you have a client that is across all of the 3 major search engines, and the other two are seriously lacking in features to help improve campaign performance.  There's pretty much nothing you can do to optimize the campaigns.

I like "playing" with Google manually, but where I run into trouble is when I want to do something "advanced."  For example, my sales on an account may be slow from 1-5pm.  I don't want to "pause" during that time, but I'd like to reduce my bids by 30%.  That's the kid of functionality and flexibility that I'm looking for in a tool.  Or, the converse, I know that a "hot" time of the day, or day of the week is xxx, I want to raise my bids during that time frame.

Keep the ideas coming.  I want to evaluate all of the options!!
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Lakatos
Top Contributor
Google Advertising Professional
12/11/08
Hi Shaneeekirk,
 
>> ... from 1-5pm.  I don't want to "pause" during that time, but I'd like to reduce my bids by 30%. <<
 
On your "Edit Campaig Settings" page you may want to click on the "Edit times and bids" blue link. On the next page you're advised to click on the "switch to advanced mode" link. You'll be taken to the 'Advanced Ad Scheduling" page which includes a bid multiplier you can use to bid more or less for your campaign during certain time periods. Please kindly find detailed explanation and description in the reference linked to below.
 
Cheers, 
 
Lakatos
References:
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TJ 360Partners
Level 1
12/11/08
Using Google's interface to bid % down or up is one way to bid, but not a recommended best practice.  For one, the current AdWords editor does not allow you to copy/paste day of week/time of day settings so when you have multiple campaigns, it's a huge pain to manually set this all up. 

Second, your bid optimization can easily become non-optimal if you incorrectly set the %s.  A better way to do this, if you are using bid optimization software, is to create two identical campaigns that are set to turn off/on on certain times of day or days of week.  And let the bid optimization software determine the best bids for the AM vs. PM.  Or weekend vs. weekday.  Or whichever breakdown on time of day/day of week that lets you optimize conversions.  If you're right that lunch is a bad time for conversion rate, but dinner hours are great, set different campaigns for each and let bid optimization software bid for you. 
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kydon
Level 2
12/16/08
I have tested most of the tools out there over the last few years except the latest one from Webtrends, and I have to admit that nothing really compares to an analyst working on the account. Of course this has its own limitations but the main problems I found with using those tools are:

Negatives
1)  Can't really understand the account, products
2)  They can't understand the quality score of Adwords
3)  They are expensive :(
4)  They can't adapt to seasonality and changes in the consumer behavior
5)  Most of the functions they offer you can find on Google Adwords interface
6)  The can only work on very niche products or with a big brand on the destination URL :)
7) They usually tend to push all the budget to brand without thinking about long tail or generic keywords.

On the other hand some positives

Positives
1) You can use one interface for all three networks (on some tools)
2) Easy to use for reporting
3) Works great when you target is clicks and not conversions
4) Helps when you pitch to a business
5) Will highlight any issues with your links/adcopy/keywords quickly

The problem with not using a tool nowadays is when you go for a pitch and you try to explain to the potential customer that you don't use a tool, but an experienced analyst. The customer will look at you in disbelief and go for a company thats uses the latest tool that has its own algorithm blah blah blah. I personally think a clever analyst with some common sense and an interest in the products is far better than any tool out there. Of course technology develops and I am sure a tool will come out that works better than a human! 


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