))
Episode 26: Why Increase Your Google Ads Bids if You’re Already Profitable?
Manage episode 298208223 series 2914821
Content provided by Sam Baldwin. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Sam Baldwin or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://player.fm/legal.
"Why increase your bids if you're already profitable on your campaigns in Google ads?” I get asked this question a number of times. So in this episode, let's talk about Google Ads bid adjustments and how it affects profitability.
📅 Let us grow your Google Ads account for you. Book a free strategy session with Sam here: https://keycommerce.com/strategy-session/
🔴 Subscribe for more tips just like this: https://keycommerce.com/Subscribe
This is a really good question and it makes sense on the top level. However, if we want to dig deeper into this topic, you first need to understand how the Google Ads Auction works. By doing this, you can understand that increasing your bids when you're already profitable can actually lead to way more volume of profits.
Google Ads Auction works by setting a maximum CPC or if you have opted for automated Google Ads bidding strategies, google will set this for you. But everyone has to pay cost per click. It's called pay-per-click marketing. The cost that you're willing to pay isn’t used in relation to your quality score to work out your ad rank and basically, in simple terms, there's a lot to get into here.
It simply means that if you're willing to pay more per click, then you're going to get a high position in the auction and you're going to get a bigger volume of clicks. However, those clicks are going to be more expensive.
How does this relate to profitability? You have two metrics for this: average profit per conversion and the actual total volume of profits. There's a bit of a battle between these two metrics right now. When you're asking this question because you might be profitable on a product level, this means that your conversion is making you so much profit. But because your bids are so low, you're just not getting the volume of clicks to make a massive volume of profits because you know theoretically that you can increase your bids in your campaigns. And yes, your average cost per conversion is going to increase potentially just a little bit.
When you really think about it, it's quite a complicated question because, as mentioned, you need to understand how the Ad Auction works. Watch this video to learn more!
🎥 Watch the full video version of this episode here: https://www.youtube.com/watch?v=Y79wqeq9ryE
🔗 Here’s the video on Custom Columns in Google Ads that I recommend in this video: https://www.youtube.com/watch?v=-Yt_SKPrhxg&t=0s
🎬 Watch my most recent videos: https://www.youtube.com/channel/UCpv6LoMeHrG-NPDCRnBWFpA
My popular videos: 🎥 Google Merchant Center Account Suspended - https://www.youtube.com/watch?v=DVwExqRr42A 🎥 Fix Disapproved Products - Google Merchant Center - https://www.youtube.com/watch?v=D48epLH-fFI
✅ For tips and tricks on growing your Ecommerce store remotely make sure to subscribe: https://keycommerce.com/Subscribe
--------------------------------SOCIAL--------------------------------
📝 Key Commerce Blog - https://keycommerce.com/blog 👥 Facebook: @MrSamBaldwin 🐦 Twitter: @MrSamBaldwin 📸 Instagram: @MrSamBaldwin
#GoogleAdsBidAdjustments, #GoogleAdsBiddingStrategy, #MrSamBaldwin
28 episodes
Share
