EID 04 – Increase clicks by pushing bids on low ad ranked keywords

EID 04 – Increase clicks by pushing bids on low ad ranked keywords

Hypothesis

If this experiment is successful, I predict:

  • Clicks to the website from adwords will increase by 25%

Experiment Design

  1. Filter keywords which are not garnering impressions due to low ad rank and where CPC < First Page Bid
  2. Add columns (Est Addition Clicks/Week [+50% Bid]) and (Est Additional Cost/Week [+50% Bid]) and sort descending based on Est Addition Clicks/Week [+50% Bid]
  3. Do the maths as indicated above, and see if it makes sense to bid higher and if yes, then by how much

 

Resource Estimation and Probability

Marketing Design Engineering Probability
0.25 Day 0 Day 0 Days High


Results

Metrics Before After
Clicks/Week 50 250
Est. Addition Clicks/Week (+50% Bid) 200 0
Est. Additional Cost/Week (+50% Bid) $125 0
Click Conversion Rate 6% 8%
Conversions/Week 3 20
CPC (50% increase in bid doesn’t translate to an equal increase in CPC) $0.5 $0.6
Cost/Week $25 $150
Cost/Conversion $8.3 $7.5

Learnings

  • We spent $125 extra and got 17 extra conversions
    • Increasing conversions by 600%
    • Reducing Cost/Conversion by 11%

Action Items

  • Try to repeat this exercise once in a while, maybe once in two months. It’s not a guaranteed way of getting better results however worth a try..

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