In March, we carefully explained the way our Mobile Modifier handles automatic bid adjustments for mobile devices. Since then, a lot has happened: Google updated their mobile-strategy to give advertisers more control over device-specific bidding in Google AdWords. Advertisers now have a way to set separate bids for desktop, tablet and mobile. We are happy to announce that we updated our device modifier to include the new options in automated bidding!
The Google Update
Instead of a joint base bid for desktop and tablet that is adjustable for mobile, Google AdWords now lets you pick one source of traffic to place your base bid and adjust the other two according to your needs. In fact, advertisers are able to tie their base bid to any one of the three devices, letting advertisers decide which channel is the most important one for their businesses.
To local businesses, smartphone traffic might be more valuable than accesses to the site from other devices. As Google explains, nearly one third of all mobile searches are related to location. These advertisers are now able to set a base bid for smartphones and adjust it -20%, for instance, for desktop and tablet. The range for adjustments to the base bid is now from -100% to +900%.
Setting the right bid adjustments
Choosing the right adjustment for each bid across all device types is not an easy task. The wider range increases complexity and leaves even more room for guesswork and mistakes. In our bid management system, this is where the new Adference device modifier gets to work: it looks at historic conversion data from desktop, tablet and mobile traffic to determine the expected basket values and conversion rates for each keyword by device. In addition, the device modifier factors in the gap between the highest amount of money that advertisers are willing to pay (maxCPC) and the costs that they’ll actually pay per click (avgCPC), as the difference between the two values tends to vary greatly between devices. The modifier then automatically calculates the best bids for each device and sets the adjustment value necessary to reach the desired CPA or ROI target. For example, if main traffic is on smartphones, the Adference Bid Management sets an adjustment of +30% for tablet and -20% for full screen computers to reach the desired optimization goal.
Your advantage: the Adference modifier looks at what differentiates mobile bids from desktop bids from tablet bids – namely, their conversion rates, their basket values and the gap between maxCPC and avgCPC. It turns to large data bases and complex algorithms to arrive at reliable predictions for each of the three device types. Based on these calculations, the Adference Bid Management obtains the right bids.