What is it?
The Reduce Bids 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.
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%.