Last year, I wrote a post called Bid Management: Is It Even Still a Thing? In that post, I talked about all the bid management tools PPC managers have at their disposal, from Adwords Scripts to automated bidding in the engines to bid management software. I wondered, with all the tools available to us, whether manual bidding had become a thing of the past. Do people even focus on bid management, or do they let tools do the work?
A quick Google search for “bid management” indicates that it is still very much a thing:
3 PPC ads, plus an organic listing and an irrelevant Wikipedia definition, show above the fold. 2 of the ads are for agencies (including my local friends at Netvantage), and one is for a bid management platform. So clearly, people are searching for help with bid management.
There certainly is no shortage of bid management tools out there. Just last week, Google launched Adwords Smart Bidding, which uses “powerful machine learning” and device performance optimization, among other things.
So is automated bid management really better than manual bid management? My answer, as with many things PPC, is it depends.
When Automated Bidding Makes Sense:
• In large accounts, it’s nearly impossible to manually manage bids. It’s inefficient and leads to sub-optimal performance. Some type of automated bidding, whether through a paid tool, scripts, or engine optimization, is necessary. I like third party tools, since they’re more robust than the free tools, and include features like budget management that are harder to do with free tools.
• When you have high click or conversion volume. Even in smaller accounts, if you have a lot of conversions, using the “target CPA” rules in Adwords and Bing can really improve performance and make bid management easier. You’ll still need to monitor your bids, but you won’t need to actively manage them on a daily basis.
• When your goal is ad position or impressions. Using rules like “bid to position” makes manual bid management unnecessary, if these things are your goal. It’s rare that bidding to position makes sense – I always recommend against it – but in competitive situations on brand terms, for instance, it can be important.
When Manual Bidding Makes Sense:
• For small accounts with low budgets. If you have an account with a fairly small number of keywords, and a limited budget, you can often just set your bids and check them every couple of days. Your budget cap will keep you from overspending, and if you’re limited by budget, making tons of bid changes isn’t really necessary.
• When you have little competition. This is pretty darn rare these days, but there are some niche industries where there are few competitors advertising. If no one is bidding against you, bid management is simple.
• When automation fails. It’s rare, but I’ve had instances where bid management tools have failed, either by killing volume while trying to meet a CPA goal, or by creating a ton more work for me in reviewing reports from a script. Sometimes the bid or competitive situation is too complicated for a tool algorithm or script to understand, and requires a human touch.
What do you think? Do you prefer automated bid management for most of your accounts, or do you still like the control that manual bidding offers? When do you prefer one over the other? Share in the comments!