It is well known advertisers are more inclined to run their Paid Search campaigns on Bing if they can be easily replicated from Google.
Google have made major updates to their targeting option through the Enhanced campaigns platform and are setting a new industry standard. As a result, Microsoft have had to match this to enable the smooth replication to continue.
Microsoft clearly refuse to fall further behind the front runners Google, by ensuring that the Bing Ads platform has been upgraded to match Google Enhanced Campaign.
We explore the Bing update and see what the new opportunities are for advertisers
Incremental bidding on Bing
Prior to the update, Bing managed bidding on an incremental basis which allowed advertisers to increase their bids to achieve a stronger position on specific keywords when the user’s demographics meet certain criteria e.g. age range, day of week.
The old way:
The image below show the old way of managing bids on Bing:
This approach was hugely effective and allowed more precise targeting than the now established Google AdWords Enhanced campaigns platform. On the Enhanced campaigns platform, advertisers are only able to set bid multipliers by region or city based at a campaign level, not at the more granular ad group level possible on Bing.
However, following Google’s introduction of Enhanced campaigns, Bing recognised the need to update the way in which incremental bids are calculated in order to complement Google’s Enhanced Campaigns. So Bing have mimicked AdWords Enhanced campaigns in order to allow advertisers to simply import their campaigns into Bing.
The new way:
The update will use percentage multipliers instead of adding multiple bid adjustments together as the approach did previously. Percentage bid adjustments will now be multiplied together rather than be summed. This is dependent on whether your targeting combination reaches users that fit into more than one criterion.
It is perhaps unsurprising to note that the potential maximum bids using the new methodology will likely always be higher than when calculated using the old method.
The new approach in practice:
We have been testing this feature with one client over the past weeks, and have found that:
- The maximum bids for multiple bid adjustments using the new method will generally be higher than those using the old method.
- Incremental bids are rounded down to the nearest penny.
- When you place an incremental bid for geographical location, day of the week, or time of day, you can use targeting to choose whether to display your ads only to target customers or to all customers. When you place an incremental bid for age or gender, your ads are displayed to all customers, but your incremental bid can increase the likelihood of your ad being displayed to the specified gender and age segments. In all cases, you pay the incremental bid only when one or more of the target criterion is met and your ad is clicked.
To sum up:
Microsoft have said that Bing Ads will continue to evolve the new incremental bidding approach with more advanced targeting options. So, we recommend keeping an eye out for more sophisticated bidding functionality coming from Bing Ads to help enhance the platform further. These could include negative bidding for less favourable audiences as well as device specific bidding adjustments. We believe that device specific options will prove valuable for advertisers who see lower conversion rates on either tablet or mobile as it will maximise their return on investment.
In the meantime, good luck with your testing of this update, if you have any questions please don’t hesitate to ask our team!