No More Minimum CPCs – What Does that Mean for Your Campaigns?

Last month Google announced further changes to the way Quality Score is calculated. There were several improvements announced but it was the abolition of minimum CPC bids that raised most eyebrows. 

For those of us who have managed campaigns as the Ad-Words system has evolved over the last few years, these types of changes are something we are used to now. I would even go as far to say they introduce a little bit of excitement round the office as we await the first live results of any such changes. Our day to day jobs are so intrinsically bound to the mystery that is Quality Score, that even the smallest alterations can affect campaign performance.

Predicting What will Happen

Each time Google announce such changes the SEM blog sites invariably go wild with predictions and warnings of what will, and won’t happen. These can often be well wide of the mark because in reality there is no sure way of predicting exactly what will happen to every campaign. 

PPC Guru rule number one in campaign management: never assume anything! There are just too many variables to ever predict accurately what Google’s changes will bring. There are though, certain occurrences that happen almost every time the QS “improves”:

1. Google make more money.
2. You can’t get a straight answer from Google reps.
3. Affiliates will be rubbing their hands.
4. Something totally unexpected happens.
5. Opportunities for your campaigns will arise.
6. PPC pros complain about Google making more money.

Forgive my cynicism but it’s too much of a coincidence that tumbling share prices are met with two QS improvements in one year. That though, is another Blog.

 

What About My Campaigns

 

So regardless of whatever changes happen, there is still the fact that you have a responsibility to deliver ROI for your campaigns. So my first piece of advice is to be ready to counter any threats that could impact your ability to do this. Through closer monitoring you can react quickly to the changes you see, not only allowing you to limit any potential damage, but also capitalise on opportunities.

 

PPC Guru rule number two in campaign management: The early bird catches the worm! The fact is if you can get your head around changes in the landscape before your competitors then you will be the one who can benefit the most. This is true for new tools, Google products, QS the lot.

 

Here’s what I’ll be making sure my team are checking for:

 

• Brand Terms - One thing for sure – there are going to be a hell of a lot more active keywords floating around. An easy way for competitors to get a quick win on you is by bidding on your brand terms. During the initial spell I will be checking brand terms three times a day minimum – hound the trademark team for removal of any infringements and maybe consider contacting other advertisers directly. Non proliferation agreements can often be an easy way to clear your brand marketplace.
• Brand Terms ii) - Some advertisers leave their brand Max CPCs much higher than the actual CPCs. If you are guilty of this and there is a deluge of bidders on your terms then you can be left with massively inflated spend.
• Keywords Reactivating - Review any inactive keywords in your account, if you have a lot then their reappearance could seriously impact your budget. Check their CPCs and delete any non relevant terms – they are probably inactive because of poor QS in the first place so they are unlikely to add any value to your campaign.
• Campaign Daily Budgets - Allow enough room for a moderate uplift in spend but double check that it’s not set so high, that if your spend does rocket you aren’t left rueing it. 
• Trial New Keywords - … But don’t forget the basics. There are potentially a lot more markets you can have your ads showing on. But a poor QS will still make it harder for you to drive an effective level of ROI. Keep your ads relevant to your landing pages and keywords, as well as setting your bids based on conversion not potential impressions.
• Careful on Weekends - Most of the negative effects incurred by my campaigns during QS changes have occurred on weekends. Opportunist affiliates and rogue competitors know this is when they are most able to get away with testing the limits of a new search environment.

As for when we’ll see the changes – that’s the best bit. Another of Google’s annoying habits is just to throw these changes out there and see how the market reacts. They then come direct to the advertisers for feedback on how it works – it’s our job to keep a tight watch on campaigns so that that feedback is good when they do!

Tags: adwords, campaign management, Google, minimum bids, quality score