What is It?
This optimization was created using the Rule Engine to help you find expensive keywords and reduce their bids. The keywords suggested are ones with a higher CPA than a keyword would typically have in the campaign, or keywords without conversions but which have still undergone more clicks than normally required to get at least 1 conversion.
You can access the optimization from the Optimizations > For Bids tab, or directly from this link.
Why Use It?
With this tool, you can:
Identify keywords that are driving up your CPA compared to the typical performance in the campaign, helping you quickly spot areas where costs are getting out of control.
Save time on manual performance reviews by letting the optimization highlight keywords that require bid reductions based on performance data.
Reduce bids on keywords that are receiving significant traffic but failing to convert, preventing unnecessary spend on underperforming terms.
Maintain more consistent cost efficiency across your campaigns by automatically adjusting bids on keywords that are unusually expensive.
How to Use It?
The settings for the optimization suggestions take 4 things into consideration:
Bid Reduction Percentage. In the default settings, it's set to 10%.
Expensiveness factor that is to be considered for suggestions. For example, 1.5 times the typical cost.
Lowest allowed bid. In this case, it's set at 0.10.
Highest allowed bid. In this case, it's set at 10.
In other words, the settings define that if a keyword is 1.5 times as expensive as the typical keyword, and its bid ranges from 0.10 to 10, then reduce its bid by 10%.
Use Cases
1. Control Rising CPA from Overpriced Keywords
Problem: Some keywords in your campaigns may start generating conversions at a much higher CPA than the rest of the campaign. How can you identify these expensive keywords?
Solution: By using this optimization, you can define the ‘expensiveness factor’ (for example, 1.5 times the typical cost) and identify keywords that are unusually expensive compared to others in the campaign.
You can then reduce their bids by a predefined percentage to bring their cost efficiency closer to the campaign average.
2. Avoid Aggressive Bid Changes and Protect Campaign Performance
Problem: When lowering bids on expensive keywords, there is a risk of reducing bids too aggressively and limiting traffic or ad visibility. Can you set clear boundaries?
Solution: The Find Expensive Keywords optimization allows you to define a lowest allowed bid and a highest allowed bid. These limits act as guardrails when the tool recommends reducing bids. Even after applying the bid reduction percentage, the final bid will stay within the defined range.