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  • Interaction between wild seasonality swings and automated bidding strategies

     Teddy updated 1 year, 10 months ago 2 Members · 2 Posts
  • Teddy

    January 11, 2021 at 7:02 pm

    Say your business peaks during the summer and remains very flat the rest of the year.

    You launch a campaign during the off season anyway, and eventually get a decent conversion volume. You then switch to an automated bidding strategy to try and get a bit more conversions for a little less money.

    After slowly adjusting your target CPA bidding over a period of several months, the peak season comes. During the peak season, your CPA is going to be a lot lower naturally, even lower than anything that your target CPA managed to get to in the off season.

    Do you suddenly adjust this target CPA downwards in one go to account for the lower acquisition cost during the peak season and keep pressuring down, only to wildly adjust them upwards when the off season comes, or do you simply create a new campaign and set a fresh target CPA for that one?

    Smart Bidding apparently handles seasonality, but if I specified a CPA that is just out of whack suddenly, I wonder how dependable the tool actually is.

    How do you guys handle it?

  • Haminthepaint

    January 11, 2021 at 7:02 pm

    You can do manual seasonality adjustments with automated bid strategies by telling Google the anticipated difference in conversion rate over a given date range.

    To do this go to Tools & Settings -> Bid Strategies -> Advanced Controls -> Seasonality Adjustments. From there hit the blue plus sign. From there its pretty straight forward

    Note, the conversion rate adjustment you enter will be the percentage difference of your conversion rate (which is a percentage itself). So if you have a 2% conversion rate and you’re expecting double the conversion rate over a given time period, you enter 100%, **not** 4% (as in your expected conversion rate) or 2% (as in your incremental conversion rate increase)

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