Nov 12, 2008 113 reads by Navneet Kaushal

The session emphasized how large scale bid management is becoming more important than ever. How to ensure maximum ROI? How to bid on keywords that lead to maximum conversion? Some of the questions answered in this session.


  • Ken Jurina


  • Chris Knoch, Principal Search Consultant of Omniture
  • Jon Kelly, President of SureHits
  • Gerry Bavaro, Executive Chairman of

The session was initiated by Chris who emphasized on the economy of efforts. One has to acknowledge the resources available and establish key priorities as well as tactics.
It is imperative that you understand what you are working with. It has been often noticed that Internet Marketeers tend to overestimate the resources available as well as expectations because of large scale keyword campaigns. Therefore, it is significantly important to be aware of your resources. Determine the ability, expertise and head count of your team. What tools and resources do they have at hand?

As per your team strength and ability establish reasonable goals and targets. The popular concept that 'more keywords is better for your campaign' could not be more misguiding. One has to realize that keywords are not a badge of honor, their aim is solely to improve performance.

On automate bidding, Chris stated that most bid management systems simply look at the click at conversion rates of the keywords. One has to consider that most automated keywords would bid keywords downward and this could significantly vary from your priorities. It does not make sense to follow new optimization trends just others are doing it as well. Optimization trends are unique and every business has to acknowledge the same. Financial performances are the main criteria behind successful bid management.

How to manage the same?

  • Get hold of your relevant keywords and then apply labels on them with Excel.
  • Manage them through these classifications. Keywords tagged as 'high ROAS' should be focused on.
  • Segregate your data and apply the correct optimization on them.
  • Change the labels of the data as per requirements.
  • One must use a different technique for each classification. Set standard rules, such as position rule, performance rule, or portfolio rule.

When you have a large scale campaign, you have to understand that more keywords doesn't necessarily result in more success. Let's keep in mind that each of these keywords cost some money. The idea is to get maximum returns at the top. Keep in mind that power terms get a massive number of clicks, good conversion rates as well as good CPC's. So they should definitely feature on your lists.

Segment the keywords by testing which ones perform at the greatest ROI. Then test their efficiency, do they cost more than they get? You have to know how to efficiently pull the levers into the media buys and thereby, getting the maximum output.

Large campaigns are defined by the number of keywords. One should calculate the number of segments running and be aware of all the factors and figure in order to leverage them correctly.
Try to figure out why do specific keywords get higher click through rates. Remember that you are trying to buy audience and not just clicks. Trend noticing can help you significantly. It is imperative that you get hold of keywords that offer you high order value. Tracking and analytics are of utmost importance.

At a large scale, geographic segmentation is the easiest thing to follow. If you find out that certain geographical areas offer you a much higher ROI then take take your decisions accordingly. Realize the huge potential of geographic segmentation. Ironically, segmentation is possible within the segments as well. Overall message, it's data from high spend clicks that can enormously help you in bid management.

Jon Kelly, largely regarded as one of the sharpest minds in the entire industry, comes next. His SureHits organizes large PPC accounts and holds three criteria as significantly important:

  1. Calculate the Click value
  2. Reward the user's choices
  3. Keep a Watch on your campaign data

By calculating the click value one can figure out the profitability of the whole conversion. It is imperative that you keep in mind the market model whenever you start a campaign. Keep in mind that every market is significantly different.

The best way to manage your campaign is by tagging keywords. This is quite similar to a tag cloud on a blog. Tagging process has to be on the basis of the concept of the market model.

It is these tags that can correctly predict conversions of keywords. Let's take the example of the mortgage market. A city phrase in the same has a negative value, ie it generally has a lower conversion rate than ones which don't. However, in the same case, a State phrase has higher conversion rate. Then the word 'quote' get more favorable response than 'rates'.

It is imperative that you understand and reward the user choices. Searchers are willing to tell what they are looking for, all it takes is some research work to hear the same. Once you track that, your conversion rates would go up tremendously.

There is a lot of data at your disposal outside the search engines. Geo-Targeting is of utmost importance nowadays and following the same can take your conversion rates way up. Automation may be needed for processes, such as calculating keyword click value, day-parting, landing page testing and tuning, but human intervention is as important in order to analyze the results.

Large Scale Bid Management: PubCon Las Vegas 2008, Day 1, 5.0 out of 5 based on 1 rating
Navneet Kaushal

Navneet Kaushal

Navneet Kaushal is the founder and CEO of PageTraffic, an SEO Agency in India with offices in Chicago, Mumbai and London. A leading search strategist, Navneet helps clients maintain an edge in search engines and the online media. Navneet's expertise has established PageTraffic as one of the most awarded and successful search marketing agencies.
Navneet Kaushal
Navneet Kaushal
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