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	<title>Search Marketing&#187; Preferred Cost Bidding Blog Posts &#8211; Epiphany Solutions Digital Marketing Blog</title>
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		<title>Automatic Matching &#8211; I Can Hardly Contain My Enthusiasm</title>
		<link>http://www.epiphanysolutions.co.uk/blog/automatic-matching-i-can-hardly-contain-my-enthusiasm/</link>
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		<pubDate>Thu, 20 Mar 2008 14:09:37 +0000</pubDate>
		<dc:creator>Steve Baker</dc:creator>
				<category><![CDATA[Automatic Matching]]></category>
		<category><![CDATA[Budget Optimiser]]></category>
		<category><![CDATA[Campaign Optimiser]]></category>
		<category><![CDATA[Expanded Matching]]></category>
		<category><![CDATA[Google Adwords]]></category>
		<category><![CDATA[Optimised Ad-Serving]]></category>
		<category><![CDATA[Pay Per Action]]></category>
		<category><![CDATA[PPC Campaigns]]></category>
		<category><![CDATA[Preferred Cost Bidding]]></category>
		<category><![CDATA[Standard Delivery Method]]></category>

		<guid isPermaLink="false">http://www.adwordsprofessional.com/automatic-matching-i-can-hardly-contain-my-enthusiasm.html</guid>
		<description><![CDATA[Google are currently beta-testing a new service, called ˜Automatic Matching&#8217;. The premise is simple , if you aren&#8217;t spending your complete budget, then they will show your adverts on searches that you aren&#8217;t bidding on, if they think it will be successful. On the face of it, this may sound like a good idea, but [...]]]></description>
			<content:encoded><![CDATA[<p>Google are currently beta-testing a new service, called  ˜Automatic Matching&#8217;. The premise is simple , if you aren&#8217;t spending your  complete budget, then they will show your adverts on searches that you aren&#8217;t  bidding on, if they think it will be successful.  On the face of it, this may sound like a good idea, but  Google&#8217;s history with automated tools is, to put it mildly, poor.  Looking back at their innovations over the past 12 months,  there has been a steady stream of ˜improvements&#8217; that will allow you to manage  your campaign with less effort. And at the current time, I am using precisely  none of them.  Now, it is true that as a PPC account manager I should  probably be doing things by hand, but the simple fact is that whenever I have  used Google&#8217;s new tools, I&#8217;ve been disappointed. Here are a few examples&#8230;</p>
<h2>Expanded Matching</h2>
<p>When this first came out, it did so with little in the way  of warnings. The first I knew about it was when my clickthrough rate collapsed  on a few of my campaigns. Suddenly, where I had been bidding on leather beds on  broad match, now my advert was appearing on searches for upholstered beds.  In truth, I got lucky. Somebody who searched for upholstered  beds clicked on my advert. As a result, it appeared in the Search Query report.  If nobody clicks on your advert having searched for a term, then you don&#8217;t know  about it.  Even now, nearly a year later, if I search for upholstered  beds, there are two adverts for leather beds. I guess some people don&#8217;t run  search query reports very often&#8230;  This option was designed to fill in all the keywords that  are relevant to your campaign, but that you haven&#8217;t thought of. But the problem  is that you can&#8217;t have Broad Matching without Google throwing in Expanded  matches. Since Expanded Matching is totally unreliable, and you can never even  tell what searches fire your adverts, Broad Matching has become, for me at  least, unusable.</p>
<h2>Pay-Per-Action</h2>
<p>This sounds like a great idea. Basically, you tell Google how  much you&#8217;re willing to pay for somebody to perform an action, and Google  adjusts your bids accordingly.  So I tried it on my two biggest, and most consistent  accounts. Both of them had a very predictable cost per conversion, and I set  that as my objective. The result? Virtually no traffic. In two days, a campaign  that usually collected 250 clicks per day managed only 2 clicks (neither of  which converted).  But the point is that this is automated. It&#8217;s never likely  to work very well. Either it&#8217;ll bounce your bids all over the place depending  on the results from the previous day, or it won&#8217;t be sensitive to changes over  time, and your bids will always be in the wrong place.  It takes a human brain to work out whether the variation in  the conversion rate is just random, or part of a more significant trend.  Perhaps, with a lot of work, a computer could be programmed to draw reasonable  conclusions, but as a rule, the tools implemented by Google tend to be  relatively simple. I feel that my test could have been a lot worse , Google  could have spent far too much per click. Underbidding may cost me potential  sales, but at least I can&#8217;t make a loss!</p>
<h2>Site And Category Exclusion</h2>
<p>Alright , I wasn&#8217;t totally honest earlier. I am using this  one for a few of my campaigns. The idea of this tool is that you may want to  include or exclude certain categories of websites when you advertise on the  Content Network.  So, for example, you may decide that you don&#8217;t want your  advert to appear on Forums, or on Video-sharing sites. And rather than input  them all manually, this allows you to filter out irrelevant websites en-masse.  This sounds great, but it raises two questions. The first  one is that if these sites aren&#8217;t relevant to your adverts, why are they  appearing there in the first place? This is Content Targeting. It&#8217;s targeted on  the relevance of the content to your website. If it&#8217;s relevant, why do you not  want to appear there. If (as is more likely), they aren&#8217;t relevant, why does  Google show your adverts there?  But the problem with the whole thing is that it&#8217;s just a  shortcut to avoid you doing some work. Ever since Google implemented its  Placement Report, you have been able to see which sites are working for you,  and which ones aren&#8217;t. Armed with this information, surely it&#8217;s not that  difficult to create a Placement Targeted campaign, and choose which websites  you DO want to appear on. It doesn&#8217;t take very long, and you can always  reactivate your other Content Network campaign occasionally, to make sure that  you aren&#8217;t missing valuable traffic.</p>
<h2>Budget Optimiser</h2>
<p>This one&#8217;s just a bad idea. The idea is that you decide your  daily budget, and Google adjusts your bids to get you as many clicks as  possible for your money.  That&#8217;s <strong>as many CLICKS  as possible for your money</strong>. Exactly why would you want to do that? If  you&#8217;re selling something, you want to maximise the value (or at the least, the  number) of sales for your money. If you are generating leads, you want as many  leads as possible for your money. So who would possibly want to maximise the  number of clicks that they get for their money?  I can&#8217;t think of many businesses that would find that  useful. The simple fact is that clicks are going to be worth different amounts,  depending on the conversion rate (and in some cases, conversion value). Google  can&#8217;t take that into account, so it could easily bid a lot on low-quality  keywords, simply because they are cheaper than the more competitive, more  relevant terms.</p>
<h2>Campaign Optimiser</h2>
<p>There&#8217;s that word again&#8230; Optimiser (optimizer if you&#8217;re  American). A quick look up on the Interweb tells me than optimization is  defined as: œThe  decision strategy of choosing the alternative that gives the best or optimal  overall value  The best value of what? Well, that&#8217;s up to you, really.  In most cases, it&#8217;ll be profit, Google doesn&#8217;t know what a conversion is worth  to you, But it doesn&#8217;t even take into account your conversion rates. Here are  the changes it will propose, along with Google&#8217;s definition&#8230;</p>
<ul>
<li><strong>Daily budget  adjustment</strong> Budget changes can affect your ad visibility and bring you more targeted  traffic.</li>
<li><strong>New keywords</strong> Proposals might include new targeted keywords that relate to your landing page.</li>
<li><strong>Deleted keywords</strong> If the Campaign Optimiser identifies poorly performing keywords, it may propose  removing them.</li>
<li><strong>Changed keyword  matching options</strong> The right matching option can help you reach customers more effectively.</li>
<li><strong>Keyword CPC bid  adjustments</strong> Your cost-per-click bid (in addition to your ad quality) affects your ad  position.</li>
<li><strong>Ad text edits</strong> The Campaign Optimiser may suggest changes to make your ad text more effective.</li>
<li><strong>Refined location  targeting</strong> We will suggest that you target only those regions that perform well for you</li>
</ul>
<p>So, it will tell you if your budget&#8217;s wrong, even though it  doesn&#8217;t know if your campaign&#8217;s profitable or not.  It will recommend new keywords , if you&#8217;ve ever used  Google&#8217;s keyword suggestion tool, you&#8217;ll know how well that works.  It&#8217;ll tell you which keywords aren&#8217;t working. Based on what?  Clickthrough rate? Cost per click? These are not things you want to be basing  your decisions on.  So Google knows which matching types are appropriate for  you? How? If it knows that there are keywords that you could pick up through  Phrase Match or Broad Match, then they should be added in on Exact Match. If it  doesn&#8217;t, then why would it recommend them?  Bid adjustments are just a bad idea, for all the reasons  discussed already.  Advert Text edits??? Google briefly trialled an Advert Text  writing tool. It was so bad, I lack the words to describe it here. I wish I&#8217;d  kept some of the adverts it suggested, but sadly they are no more&#8230;  Regional Targeting? It all comes back to what Google calls  optimisation. They want to maximise your clickthrough rate. Which is definitely  not your objective.</p>
<h2>Preferred Cost Bidding</h2>
<p>Haven&#8217;t tried this one, but it worries me a bit. The idea is  that you decide how much you want to pay per click, and Google adjusts your  bids accordingly. Sounds OK, but one of the few backups that you&#8217;ve got if  things go wrong is your maximum bid , you can&#8217;t pay more per click than this  under any circumstances. I&#8217;m sure that Google are going to be careful, but how well  would this tool work?  If you want to pay &pound;0.20 per click, but yesterday, a &pound;0.30  bid generated clicks for &pound;0.19 each, will Google adjust your bids to &pound;0.31?  This won&#8217;t increase your cost per click by &pound;0.01, as a rule. Either your advert  will stay in the same place, and your cost per click won&#8217;t change, or your  advert will move up a spot, and your cost per click could jump sharply.  Extending this example, if you need to pay &pound;0.19 per click  to appear fourth, and &pound;0.31 to appear third, then this change would increase  your cost per click from &pound;0.19 to &pound;0.31. Which one does Google go for if it&#8217;s  in charge?  The point is that you can&#8217;t choose an actual cost per click  , it&#8217;ll be one of a set of possible values, based on your Quality Score, and  the Quality Scores and bids of your competitors&#8230;</p>
<h2>Optimised Ad-Serving</h2>
<p>Of all the stupid ideas I&#8217;ve heard in this business, none  can compete with Optimised Ad-Serving. Here&#8217;s how Google explain it:</p>
<blockquote><p><em>œOptimize (default):</em> The system will favor ads with a combination of a high  clickthrough rate (CTR) and Quality Score. These ads will enter the ad auction  more often.</p></blockquote>
<p>So, you&#8217;re running more than one advert for this to make any  difference. Why would you be doing that? To find out whether the new advert is  better or worse than the old one? So how useful is it is your new advert gets  shown 1% of the time, and the old advert gets shown 99% of the time. You&#8217;ll  never get decent results.  I can only guess that Google want to limit your risk by  showing the established advert more often. And it would be useful if you could  do this, but a more useful tool would be to allow you to select the relative  frequencies that different adverts show. That way, you could show your old  advert 75% of the time, and the new one 25% of the time, if you wanted to.  A number of times, I&#8217;ve done assessments of campaigns for  potential clients, and they&#8217;ve been testing multiple adverts, but with  Optimised Ad-Serving. The result was that they could never optimise their  adverts, as one got all the traffic.</p>
<h2>Standard Delivery Method</h2>
<p>Of all the stupid ideas I&#8217;ve heard in this business, none  can compete with the ˜Standard Delivery Method&#8217;. Except possibly the Optimised  Ad-Serving. Here&#8217;s how Google explain it:  <em>œStandard delivery</em> distributes your budget throughout the day to avoid reaching your  budget early on. Your ads will show periodically throughout the day.  So, if you&#8217;ve got &pound;100 to spend per day, and you&#8217;re paying  &pound;1 per click, but your budget runs out by 10am, Google thinks your advert  should appear and disappear randomly throughout the day.  WHY???????? Wouldn&#8217;t it make more sense to cut your bids to  &pound;0.20, and get 500 clicks per day instead of 100 clicks per day, for the same  money?  If you only want your advert to run at certain times of day,  select those hours for it to run. But randomly appearing? Is there any benefit  at all in this?</p>
<h2>Keyword Suggestion Tool</h2>
<p>Since Broad Matching doesn&#8217;t work, it&#8217;s not surprising that  Keyword Suggestion doesn&#8217;t work very well either. I decided to try it out this  morning, on a website that sells conservatory furniture. That&#8217;s all they sell,  and their entire website is dedicated to this one thing.  Google&#8217;s suggestions? bedroom furniture, leather furniture,  lighting fixtures, outdoor lighting, art prints, chandeliers, art education,  school furniture, furniture rental, furniture shipping&#8230;  Need I go on? None of the keywords were even slightly  relevant , no mention of conservatories, cane, or anything else remotely  useful.  Maybe I have already added everything vaguely relevant, but  I doubt it, somehow.  The tool may have some value , perhaps if you run it, it may  give you a new idea for a keyword. But it&#8217;s pretty clear that you wouldn&#8217;t want  to use Google&#8217;s suggestions in general.</p>
<h2>Conclusions</h2>
<p>So, back to the new tool, then. Automated Matching. Google  clearly can&#8217;t look at my site, and figure out what it&#8217;s about , you can see  that from the Keyword Suggestion tool. It&#8217;s not very good at working out other,  similar keywords , you can see that from Broad Matching results. It can&#8217;t  measure the success or failure of a keyword, since it doesn&#8217;t use the  conversion information. It can&#8217;t determine what you can afford to pay for a  click, since it doesn&#8217;t know anything about your business. And yet, despite all  of that, Google is willing to spend any remaining budget on keywords, without  even telling you what they are.  I believe that one person can keep an account well-managed  in about 10 minutes per day, plus an hour every now and then to do a bit more  analysis.  Is it really a sound business-decision to give Google control  of your money? Automated Matching? I think I&#8217;ll pass&#8230;</p>


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