How Much is a Click Worth to Your Business?

We turn your unique business situation into a math problem, then we solve it. We have distilled keyword bid evaluation down to a science.

For setting keyword level bids, we use our own proprietary bid management software called BetterBid co-developed with Frederick Vallaeys, a lead engineer on the team that created the AdWords quality score algorithm.

Here's a formula we use inside BetterBid to decide how much a click from a particular keyword is worth

Desired Cost Per Conversion

This is the desired cost per action (phone call, lead, signup, etc) before quality is taken into consideration.

Click Conversion Rate

This is the rate at which clicks convert into the desired action: a lead, a phone call, a signup, or a sale.

Conversion Quality Factor

This is where we apply quality data gathered by SPARC to zero in on the best quality keywords for your business.

Keyword Bid Value

This is how much we'll pay for a click from a particular keyword. It can be much higher or lower than it would have been without taking quality into consideration.

Bid Adjustments: Now we repeat this formula up to 26 more times to calculate bid adjustments in the following areas:

Geographic

This is typically very important. We nearly always see big differences in performance between regions. Clients with physical locations often get better performance in their local market. We can also target specific areas with higher or lower income.

Available geographic bid adjustments include: Region, Nielsen DMA Region, Congressional District, State, County, Municipality, City, Postal Code, City Region, Borough, Neighborhood, University, District

Device

Depending on the desired outcome (calls, web forms, online sales, etc.), mobile devices could be the best or worst performer and need to be adjusted according to performance. For example, with call-generation campaigns, we frequently increase the bid adjustments on mobile devices to generate more calls.

It used to be that mobile device call quality was lower than desktop call quality, but that began to change in 2015. Today, the data shows us that mobile call quality actually exceeds the quality of desktop callers for almost all call-focused clients. When you also take into account the naturally higher call conversion rate of mobile phones, in almost all cases our calculations dictate a strong positive bid adjustment for mobile devices.

Available device type bid adjustments include: Desktop, Mobile, & Tablet

Demographic

Some businesses have very specific demographic focus, such as a women’s clothing store or a product for retirees. For these business, being able to target and/or exclude certain demographic groups is a core part of their campaign strategy.

For most businesses, there are often meaningful differences in performance between men & women, younger & older, and even between specific age/gender combos. Parental Status & Household Income are also useful. Even Known vs Unknown (signed into Google or not) can sometimes reveal major differences. We exploit these performance differences with demographic bid adjustments.

Available demographic bid adjustments include: Age, Gender (male vs. female), Age & Gender combined, Parental Status, Household Income, Known vs Unknown

Time & Day

There is a noticeable difference in the quality and conversion rate of traffic on a daily, weekly and monthly basis. The specifics often reveal patterns that can be used to optimize ad spend, for example by bidding more during office hours or during peak periods of the day. Even specific days of the week can perform differently and need to be bid on accordingly.

Available time of day/day of week bid adjustments include: Time of Day, Day of Week, Day of Month, Time of Year

Adwords RLSA

This feature uses a list of previous site visitors or even customers that have completed specific actions, such as making a purchase, visiting key pages, or abandoning a shopping cart. By tracking behavior, we can bid more to reach searchers who are more likely to convert in the future.

Here are some particular examples from client accounts.

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Scientific Keyword Evaluation – Our Formula to Success

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