What Is Bid Optimization?


Real-life Superhero, Phoenix Jones, was arrested Sunday morning for allegedly assaulting a group of 4 with pepper spray.
Phoenix has since been released on bail and he has released a 14-minute video of the actual events showing that Jones was actually trying to break up a fight.  Seattle Police Spokesman, Mark Jamieson, maintains that “there was no fight”.
Phoenix is scheduled to appear in court on Thursday, October 13th.
A  misunderstood and elusive nemesis of many business owners and internet marketers is Pay-Per-Click advertising.  Following specific systems and employing superhero sidekick services can help you become a well-regarded hero in your own particular niche.
In this article we take closer look into the nightlife of Phoenix Jones to discover how to inject our online advertising efforts with super-human powers, truly maximizing their effectiveness.
Let’s start at the very beginning…
 

A Very Good Place To Start

Pay-Per-Click marketing is a bid based, auction type of paid advertising.  Each advertiser on a particular network sets their own maximum amount, or bid, that they are willing to pay for a specific ad location based upon the keywords for which they are trying to rank.
The advertising network, such as Google or Facebook, automatically plays out the auction each time a visitor triggers the ad spot.  In search engine results ad spots, the automatic auction takes place when a user searches for the keyword that the advertiser has bid upon.
In addition to bid amounts, advertisers have the option to customize their keywords by setting certain parameters designed to target specific searchers.  Specifications that can be outlined include the searcher’s geographic location, day and time of search, and many others.
Each time someone searches for your particular keyword, the combination of your predetermined bid amount and the outlined targeting specifications are automatically considered by the network and a winner is determined.
When there are multiple ad spots available there can be more than one winner.  Generally the highest bidder gets the #1 position.  While typically influenced by the amount of the bid, the winners’ positions on the page may also be affected by other factors such as the quality of the ad and how relevant the ad is to the linked content.
Advertisers then are expected to pay the network for every click that their ad receives.
 

World’s Finest Team-Up

It is very possible that the main thing that has put Phoenix Jones in trouble recently has been the possibility that he was ‘saving’ those who did not wish to be saved.  Some of those who were hit with Phoenix’s pepper spray stated that they were simply “dancing and frolicking” and not fighting as Phoenix suspected.

What if there was a sure-fire way to know that you would never get mixed up in trying to tell the difference?

Enter your online sidekick!
Bid optimization is a type of system that helps minimize costs by finding the most effective keywords in your campaign and focusing on them exclusively.
This is no small task.  Bid optimization programs utilize software solutions that employ a number of different algorithms designed to know which keywords are effective and which aren’t.  This helps to keep costs-per-click low by focusing efforts on the right keywords that have already proven to convert ad viewers into visitors, and ultimately, into loyal customers.
Properly taking advantage of bid optimization ensures that you are becoming a hero to the right people and focusing exclusively on those that are actively searching for your help.
 

Weapons At The Ready

Like Phoenix Jones’ tazer-nightstick, pepper spray, and net-gun there are just as many tools, resources, and weapons available to you as a business owner and marketer.
Free services, like Google’s Conversion Optimizer, are able to maximize your reach and effectiveness by adjusting your campaign’s focus based on its extremely detailed findings.

For example:

Google’s bid optimizer is capable of realizing that some of your non-converting clicks may be coming from specific geographical locations.  Let’s say that visitors from Canada are actively clicking on your advertisement but never ever end up purchasing anything.  That would make perfect sense if, for the sake of this example we assume that, you are unable to ship to Canada.  Google’s Conversion Optimizer is able to identify this pattern and redirect your advertising efforts into targeting users located in the United States.

 
Truly an advertiser’s indispensable sidekick, bid optimization, helps to lower costs by eliminating the need to spend unnecessary funds on keywords that give only impressions and no clicks.  This is especially important for those with smaller advertising budgets.
 

Best Superhero Practices For Any PPC Network

Now, obviously Google’s Conversion Optimizer can not be utilized on other advertising networks or platforms.
Here is a short list of Superhero practices proven to make the most out of any PPC advertising campaign on any network…

1) Determine your cost-per-click by analyzing your target cost-per-acquisition

Before embarking on any PPC advertising adventure it is extremely important to determine the maximum cost-per-click you’re willing to pay for your target keyword or phrase.
One of the best ways to design a new PPC campaign is to first determine your cost-per-acquisition, or how much you will have to spend in advertising before achieving a single sale.
Allow me to walk you through the short process…
Let’s say that the average sale of your product is $100 and your profit margin is 20%.  That will ultimately leave $20 of profit for each product you sell. Let’s also assume that your site’s conversion rate is 1%.  Therefore, for every 100 visitors you receive from your PPC ad, you can realistically expect to make 1 sale.  Based on this example, if you have $20 to spread over 100 visitors, you have $0.20 to spend per click.
Using this simple formula makes it easy to set a cost-per-click based on real numbers that can later be tracked, adjusted, and tweaked to maximize your campaign’s potential.

2) Utilize demographic bidding

If you know that a particular group will respond better to your ads than other demographics, take advantage of some of the optional parameters and specifications to ensure that your ads show more frequently to those that are likely to respond in a positive way.

3) Don’t adjust your bids too frequently

Be careful to not adjust your bids too frequently.  It takes a while to be able to actually see the effects of new bid amounts.  By frequently changing bid amounts, it can quickly become very difficult to track and analyze your results especially if you make multiple changes all at once.
Attributing successes and failures to the appropriate changes is key in optimizing your PPC campaigns over time.  The insight provided by not adjusting your bids too often will help you realize what adjustments can be made to support your click-per-acquisition goals.
 

Save Your Money.  Save The World.

Phoenix Jones certainly is not the first Superhero to eventually be seen as the bad guy.
In a popular film about a certain caped crusader, a pivotal character is quoted as saying, “You either die a hero or you live long enough to see yourself become the villain”.
On the internet this is absolutely avoidable.  By utilizing bid optimization services or implementing simple manually maintained practices you can become and remain the hero that your industry needs and deserves.
 
Inside the Internet Business Academy we are teaching students to build legitimate super-powered businesses online and showing them how to get the right kind of traffic for cheap and very commonly, free!

Check it all out here…

http://jimyaghi.com/ylacademy

~Zak

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