Bid management refers to the strategy and management of bids in paid advertising campaigns, such as Google Ads. The goal is to maximize return on investment (ROI) by adjusting bids for different keywords, placements, and audiences in real time.
Effective bid management can be a complex process and requires ongoing analysis of performance data. For example, you might discover that certain keywords drive more conversions during certain hours of the day or days of the week. With this information, you can adjust your bids to increase during those periods and lower them when conversions are less likely.
Advertising platforms offer automated bid management tools that use machine learning algorithms to optimize your bids based on multiple factors in real time. For example, Google Ads has options like “Maximize clicks,” “Maximize conversions,” and “Target return on ad spend” (ROAS).
For example, if you run an online store that sells sportswear, you could use bid management to increase your bid on keywords like “buy sneakers” during the weekend, when people tend to shop more. This will help you get more visibility and potentially more sales during busy periods.
