Keeping your campaigns updated and optimised is a critical part of running a successful profit bidding strategy.
Your margins don’t stand still. Suppliers put prices up, couriers change rates, you run a sale. Every time one of those things happens, the ROAS bid you calculated is out of date.
Cost updates
When a cost changes, make sure you update your cost tracking straight away. Then recalculate your margins, send the new margins through your bid calculation, and push the new bids to Google Ads.
- Update your costsA new purchase price, a new courier rate, a higher returns rate.
- Recalculate your marginsFor every product the change affects.
- Recalculate your bidsFrom the new margins and your profit target.
- Push the changes to Google AdsSo you are bidding on the margin you have today.
If you skip this, you keep bidding on a margin that no longer exists. A £5 rise in the purchase price of a product that makes £10 per sale wipes out half your profit, and your bids keep spending as if nothing changed. Keeping costs up to date prevents wasted spend and protects your profit margin.
Price updates
When your prices change, recalculate your bids to maintain your margins. A price drop comes straight off your profit per sale, so the product needs a higher ROAS bid to hit the same profit target. A price rise does the opposite, and the product can afford to bid harder.
Running a sale? Recalculate your bids when the sale starts, and again when it ends. Otherwise you over-bid while prices are low, and under-bid once they go back up.
Bid changes and protection
Avoid large changes. Stick to 5% to 10% relative changes to your ROAS bids at any one time.
Google’s bidding needs time to learn. A big jump in a ROAS target can suddenly cut your traffic, or suddenly overspend. If your new calculated bid is a long way from your current bid, step towards it: move 5 to 10%, let it run for at least 7 days, then move again.
Example: moving from 3.00 to 3.60
GROW solution
- Cost updates. When you save new costs, by hand, by CSV or with bulk update, GROW recalculates the bids for every product affected and queues the change in UpKeep.
- Approve or automate. Approve bid changes in UpKeep yourself, or let them apply automatically after a delay you choose.
- Price updates. Turn on automatic bid updates when prices change in your product sync, and choose whether sale prices are used while a sale is running.
- Protection. Unusually large bid changes are held back for approval rather than pushed straight to Google Ads.
- Pushed for you. Approved changes go to Google Ads in batches: ad group bids for Shopping, and updated margin group labels for Performance Max.