"Rules based bidding is a disaster!" PPC Expert 1 "Are you nuts? Bid rules are essential!" PPC Expert 2 As with the question of Automated Bidding, it turns out both of these folks might be right depending on what they mean by "bid rules" -- a loaded term if ever there was one. Rules-based bidding earned a lousy reputation in the early days of PPC and for good reason. The types of rules varied wildly from the rudimentary to the complex but suffered conceptually on two different grounds: they were generally based on hunches rather than data, and they were often position-based. Rules often looked like:
- Bid $1 if the KW hasn't had an order and has spent less than X. Turn it off if it's spent more than X with no orders. Bid $2 if its had an order and its cost to sales ratio is good. Yadda yadda. or
- For this group of KW Bid to position 3 if it's less than $2; if its more than $2 for position 3 take position 6 no matter what it costs. For this group of KW... or, the pinnacle of rules based bidding: the open auction games:
- Bid to position 3, unless position 2 is within 5 cents then bid to position 2. If position 4 is within 2 cents (bid jamming) and we could save more than X% by dropping to position 4 then do that...and on and on.Very clever ways of playing the game badly.
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