The document discusses various methods for adjusting Google AdWords bids based on different factors like device type, location, time of day, and more. It explains how to calculate bid adjustments between desktop/tablet and mobile using either RPC-based or ROI-based methods. Additionally, it provides tips for adjusting bids based on location, day of week, time of day, and warns about making bids too convoluted with multiple adjustments. The overall goal is to help navigate setting optimal bids on Google ads.

1. Navigating the Maze of Google Bid Adjustment
Dr Wing Yee Lee | Senior Manager, Business Analytics
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2. Show of Hands
1. Enhanced
Campaigns
2. Mobile
3. Google
Recommended Bid
Adjustment
4. Location
5. Time of Day
www.papyrusonline.com
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3. Before and After
Before:
3 different bids
After:
1 bid
n multiplier
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80p
50p
20p
3
× (1+
-75%
=
80p
20p
)

4. The Things People Say To you…
You should raise your location bid adjustment on
the keywords with high conversion rates.
Increase bids when the user is within a certain
radius of the store.
www.grist.org
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5. You should raise your location bid adjustment on
the keywords with high conversion rates.
Location
Avg. Position
Conversion Rate
A
1.2
34.37%
B
1.2
34.21%
C
1.3
31.22%
D
1.2
28.74%
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6. Regional Conversion Rate and Avg. Position
40%
Conversion Rate
35%
30%
25%
20%
15%
10%
5%
0%
1
1.5
2
2.5
Avg. Position
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3
3.5

7. Increase bids when the user is within a
certain radius of the store.
Do you have evidence to
support this may work?
Can you track?
How to decide on
the radius?
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8. Google Recommended Bid Adjustment
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9. Computer/Tablet ROI vs. Mobile ROI
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10. Bid Adjustment Calculation Method: RPC-based
Desktop /
Tablet
Mobile
Ratio
£20
£2
£10
£1
?
2:1
2:1
RPC
Bid (Max CPC)
Mobile Bid Adjustment = ?
RPC
Bid (Max CPC)
Average CPC
ROI
Desktop /
Tablet
£20
£2
£1.8
£11.11
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Answer = -50%
Mobile
£10
£1
2:1
2:1
£0.50
£20
10
Ratio
3.6:1
0.6:1

11. Bid Adjustment Calculation Method: ROI-based
ROI Ratio = 0.6:1
Assuming the same bidCPC ratio on mobile
Answer = -10%
Mobile Bid Adjustment = ?
RPC
Bid (Max CPC)
Average CPC
ROI
Desktop /
Tablet
£20
£2
£1.8
Mobile
Ratio
£10
£1.8
£0.9
2:1
1.11:1
2:1
£11.11
£11.11
1:1
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12. Beware of CPC Fluctuations
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13. RPC-based vs. ROI-based
Method
RPC-based
Benefits
More stable
Drawbacks
Does not account for Bid-toCPC ratio between devices
ROI-based
Closer to
optimal
Regular re-calculations
required to take into account of
CPC fluctuations
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14. Use Weighted Ratios
Desktop/Tablet
Mobile
Bid
Adj.
RPC
Clicks
Revenue
RPC
Clicks
Revenue
Keyword A
£1
100
£100
£1
100
£100
0%
Keyword B
£10
10
£100
£1
10
£10
-90%
Total
£1.82
110
£200
£1
110
£110
-45%
Example credit to Kohki Yamaguchi
BidAdjustm ent
RPC Kw1Mobile
RPC Kw1DesktopTablet
ClicksKw1
ClicksKw1
ClicksKw1 ClicksKw 2 ...
Mobile Bid Adjustment = ?
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RPC Kw 2 Mobile
RPC Kw 2 DesktopTablet
14
Answer = -8%
...

15. Day of Week Bid Adjustment
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16. Time Bid Adjustment
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17. Time of Day Bid Adjustment
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18. A Convoluted Bid

Say you want to make brownies…
Source: makemelaugh.com
400g caster sugar
225g butter, melted
60g cocoa powder
1 tsp vanilla extract
4 eggs
225g plain flour
½ tsp baking powder
½ tsp salt
60g walnut halves
450g
40g
5
Source: Pinterest – Stefanie Angus
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19. A Convoluted Bid
80p
×(1+
=
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-75% )×(1+ -20% )×(1+ +50% )
20p
19
=
16p
=
24p

20. How to Navigate the Maze of Google Bid Adjustment

Taking advice with a pinch of salt
(including mine!)

Applying a few mathematical tools

Being aware of making convoluted bids
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