Manage bids for individual keywords. Enabling Rate Management

Google AdWords. The Definitive Guide by Gedds Brad

Automatic bid optimization: cost per conversion as the main success criterion

For the search network, Google has an AdWords economy feature that allows you to pay just a cent more to get a position one place higher than a competitor's ad (see "How Quality Score Determines Actual CPC" in Chapter 7). In the context display Google networks applies other rules called automatic bid optimization.

Google tries to estimate how likely it is that the content of a GCM page will nudge a user into a conversion action. If the chances are low, Google may reduce the cost per click. If, according to Google, the page that the user went to is more likely to convert, the CPC increases (up to the maximum you set).

Note. In some cases, Google discounts CPC for the Display Network, but for Display Network and Search Network ads, you should charge different bids based on the return on ad spend or the funds needed to meet your marketing goals. For some ad groups, you'll bid higher than the Search Network, and for others, you'll bid lower. Don't set the same bids for Display Network and Search Network. If you're having a hard time choosing your starting Display Network bid, the rule of thumb is that it should be 75% of your Search Network bid. For example, if you're willing to pay $1 per click on the Search Network, set the Display Network to $0.75.

The automatic bid optimization feature creates conditions under which the value of the conversion rate decreases and the cost per conversion comes to the fore.

Let's say you sell digital cameras and your maximum bid per click is $1. The first site your ad appears on is a digital camera review site and is considered reputable. Your ad appears next to an article that deals with the exact digital cameras you sell. Sites of this type correspond to the second half of the shopping cycle, and traffic from them is more likely to turn into conversions than from other display sites. This means that you will pay more per click than when switching from a less authoritative site. Suppose your ad was placed on Johnny's blog, exactly where he tells how he used such a digital camera during a trip to the island of Aruba. The site does not have a pronounced commercial focus; therefore, it is less likely that it will provide you with a conversion. But that doesn't mean you shouldn't advertise on Johnny's blog. The data in the table. 9.1 show how effective your ad is on the two sites mentioned.

Tab. 9.1. Comparison of two sites

In this scenario, Johnny's blog gets you half as many conversions as the review site (5% versus 10%). On the other hand, you pay much less per click (0.25 vs. $1), which means Johnny's blog has a better conversion rate ($5 vs. $10). You make more money from a visitor to Johnny's blog than from a visitor to a review site.

Each site has its own circle of users, and the traffic from them is also different. So don't be surprised if there are major discrepancies in CPCs and conversion rates.

Keep in mind, however, that when you're evaluating the success of your Display Network ads, the focus should be on CPAs, with conversion rates and CPCs secondary.

Once your ads start showing up on the Display Network, research the sites Google has placed them on to determine which ones are giving you decent returns and which ones aren't. After a while, once you have enough data to make informed decisions, ask AdWords for reports to customize your Display Network campaigns based on your success criteria.

From the book Rich Mom vs. Rich Dad author Doronina Oksana

Chapter 13 The Price of Success Respecting Yourself Without learning to respect yourself, and therefore your desires, it is difficult to respect other people. Can a person who, under the pressure of others, refuses even his small desires, count on achieving major success? Today

From book 1C: Accounting 8.2. A clear tutorial for beginners author Gladkiy Alexey Anatolievich

Automatic registration of documents for accounting of cash The program "1C Accounting 8" implements the possibility of automatic generation of a journal of registration of cash documents. This report contains information about all primary cash documents

From The Intel book [How Robert Noyce, Gordon Moore and Andy Grove created the most powerful company in the world] by Michael Malone

Automatic registration of bank documents All documents that have been created and saved in the configuration can be seen in the corresponding list interfaces. For example, payment orders are displayed in the list of payment orders window, payment requests - in the window

From the book Guide to Success in Life and Money Affairs author Shah-Ch Ark.

From the book Envy and other perpetual motion machines of advertising author Ivanov Alexey Nikolaevich

Chapter 11 "Work, work, work!" was the motto of Joshua Reynolds. "Always at work," said Voltaire. Walter Scott made it his rule: "Never mess around!" Favorite saying

From the book Key Account Management. Effective collaboration, strategic partnerships and sales growth author Shiffman Stefan

From the book Profitable Barbershop. Tips for owners and managers author Beleshko Dmitry Sergeevich

26. Fourth Criterion As we have noted, there are four criteria for the 50% category. We have discussed the first three. The last criterion is the correct time schedule needed to achieve the goal. What do I mean by "time schedule"? How long will it take from then

From the Google AdWords book. Comprehensive guide author Gedds Brad

6. We increase the conversion. Turning Interested Customers into Real Customers In this chapter, we will be working with the “conversion” parameter, which measures how many potential customers are converted into actual customers – how many of those who called or walked by,

From the Kanban book and just-in-time at Toyota. Management starts at the workplace author Team of authors

From the book Goals and Solutions author Kiyosaki Robert Toru

Basic: Users who converted The easiest way to remarket is to create two lists: those who converted; non-converters. Cookie duration for non-converters on most sites is

From the book Capitalist Manifesto the author Birman Igor

Intermediate: Exited and Nonconverters In this case, you start with the same structure as in the base version. However, we need to add one more cookie: Abandoned Cart Shoppers. It will only be placed in the shopping cart or on pages in the middle of a multi-page

From the author's book

From the author's book

Cost Per Conversion Optimizer The CPA Optimizer is not a standalone bidding option, but additional parameter when using any pay-per-click method. When it using Google will change bids based on the likelihood of a conversion.

From the author's book

Main criterion– “savings” The goal of efforts to reduce labor costs is to reduce costs (cost). Therefore, when choosing from several options, you should always ask yourself: “Which one is more effective in terms of minimizing costs?” However, in practice you

From the author's book

"Why" as a Criterion of Potential strong influence on "how", and in two directions. Let's look at this using the example of money.1. By limiting your why, you limit your how. For example, if a person decides in advance,

From the author's book

§ III. Criterion October 1917, the granddaughter of the Decembrist: - What is there on the street? Revolution, young lady. - That's great, grandfather was also a revolutionary. And what do they want? - To not be rich. - Strange. My grandfather wanted there to be no poor. Fork Hume: "Or our actions

Therefore, it is important to be able to optimize your betting strategy in such a way as to maximize your winnings and not blow your entire bank in a short period of time. Let's try to figure out how to do it.

System selection. Most experienced players have their own system and play exclusively on it. A great variety of sports betting schemes and strategies have already been created, but it is worth noting that none of them is universal and will not be a 100% guarantee of your victory. Various kinds of "forks", "catch-ups" and other tricks of the players are just one of the components of forecast management.

Information analysis. Every self-respecting better is simply obliged to use as much as possible big amount sources of information for making your forecast. Only a competent selection and analysis of data will give you an advantage over the bookmaker, and, accordingly, the ability to minimize risks at a particular bet, writes the Internet portal stavki-na-sports.com.

Financial management. If you decide to treat sports betting not as entertainment, but as serious work, then you should definitely take care of the proper management of your funds. You should not play for your entire bank, it is better to allocate a certain amount for the game and divide it into several equal parts. So, you will be sure that temporary failures will not unsettle you and in the long run there will always be an opportunity to recoup.

Experience is the foundation. All successful bettors note that sports betting is never given in a hurry. It will take a lot of time and effort to understand all the nuances of sports forecasts, and only after that you can become financially successful.

Emotions are your main enemy. The process of selecting rates must always be approached judiciously. Otherwise, you run the risk of making a couple of rash forecasts to enter the courage and easily lower your entire bank.

Thus, the management of sports betting is the most important component of your success in this business. If you do not disdain it and listen to all our advice, do not hesitate - victory will not be long in coming.

Channel connection

To connect Yandex.Direct in your Roistat project, use.

You can connect several Yandex.Direct accounts, and each of them will have a separate channel.

After connecting the channel in the Bid Managementall advertising campaigns of the connected Yandex.Direct account will be displayed.

Initial setup of bid management

To enter the sectionRate Management select the appropriate item in the navigation panel on the left and in the menu that opens, click on the name of the desired advertising channel:

All you need to do for the initial setup is to specify the optimal amount per click that you are willing to spend ( Write-off price) and choose a strategy.

Bet selection

You must specify optimal amount per click, which you are willing to spend keywords in this campaign. To do this, open the tab Campaigns:



The value is indicated in the table in the field Write-off price and saved automatically after input.

After entering a value in the field Write-off price the corresponding CPC will also change in your Yandex.Direct account.

To view the Roistat hint with a table of recommended values ​​for the price to be charged and the corresponding amount of traffic, place the cursor in the amount entry field:


The table displays the following data:

Choosing a strategy

You need to choose an ad placement strategy. To do this, open the tabCampaigns.

In the table for the desired campaign in the columnStrategy in Yandex.Direct click the star button. In the menu that opens, select the appropriate type of strategy and save the selection using the buttonChoose a strategy :


After pressing the buttonChoose a strategy The campaign strategy will also change in your Yandex.Direct account.

Rate Management uses Yandex strategies, and at the same time the system tries to place your advertisement in the most advantageous position.

How it works:


With the transition from placement positions to traffic volume, Yandex left approximate ratios of traffic volume and display positions so that advertisers can navigate when setting bids:

Traffic volumePlacement position
100 1st special accommodation
85 2nd special accommodation
75 3rd special accommodation
65 4th special accommodation
10 1st place guaranteed impressions
5 Entry to Guaranteed Impressions

Highest available position (5*)

This strategy uses all available traffic coverage, which corresponds to attempts to place in the highest available position in blocks"special placement" and "guaranteed impressions".

Display in the "special placement" and "guarantee" blocks(4*)

This strategy depending on the set write-off price tries to fight for bids corresponding to traffic volume not exceeding 65. Which corresponds to the last position of the "special placement" block or the highest available position in the "guaranteed impressions" block.

Showing in "special placement" and "guarantee" blocks at the lowest price (3*)

This strategy, depending on the set write-off price, tries to compete for bids corresponding to a traffic volume of 65 or 5. Which corresponds tothe last position in the "special placement" block or the last position in the "guaranteed impressions" block.

Display in the "guarantee" block (2*)

This strategy, depending on the set write-off price, tries to compete for bids corresponding to a traffic volume of less than 10. Which corresponds tothe highest available position in the block"guaranteed impressions".

Impression in the "guarantee" block at the lowest price (1*)

This strategy, depending on the set write-off price, tries to compete for bids corresponding to traffic volume 5. Which corresponds tolast position in block"guaranteed impressions".

Staking mechanism

Consider setting a bet using the 5-star strategy as an example.

    Roistat downloads information from Yandex.Direct about all possible traffic volumes, charged prices and rates for each phrase.

    If strategies are chosen that limit the placement (below 5 stars), then filtering by suitable positions occurs. In the case of 5 stars, all possible traffic volumes are taken.

    For the 5-star strategy, the write-off price from the settings is taken into account and a segment is taken from 70 to 100% of the set write-off price. From the obtained values, the best ratio of the volume of traffic to the written off price is calculated,that is, the lowest cost per unit of traffic.For example, if the write-off price is equal to 100 rubles, the optimal rate will be searched in the range from 70 to 100 rubles.If 80 traffic volume costs 80 rubles, and 90 traffic volume costs 100 rubles, the position of 80 coverage will be chosen, since it is more profitable.

    For the resulting position, we get the bid in Yandex.Direct. Prior to this, calculations took place taking into account the written off price, and not the rate. These values ​​may vary.

    A check is made whether the found rate satisfies the limitations in the experimental possibilities (described above).

    If it satisfies, then the bid found in step 4 is set. If not, then the bid is set = write-off price * factor from the experimental feature.

Bid Priority

The bid is taken according to the following priorities: Charged price of a word -> Charged price of a campaign.

Restrictions in setting the rate from the written off price

Due to the peculiarities of the auction in Yandex.Direct, in some cases the price charged may be higher than the set value. However, on average, the price written off will be equal to the price you specified.

In order to avoid write-offs of amounts that are much higher than the price written off in the Bid Management, there is a restriction that the bid in the Yandex.Direct auction cannot exceed certain value from the quoted price. The figure below shows how you can navigate: what is a rate (1) and what is a charged price (2) in the Yandex.Direct interface.



By default, there is the following restriction: the bid cannot exceed the price written off by more than 200%. You can change this value in experimental features:



Enabling Rate Management

Then you need to enableRate Managementby moving the switch next to the name of the desired campaign to the right (in the columnStatus):



From the moment of switching onRate ManagementBefore the first changes on the Yandex search pages, an average of one to two hours can pass. This is due to the fact that the Yandex.Direct system changes ads with a delay.

You can use Roistat's Bid Management and Yandex's Bid Adjustment tools at the same time. In the case of simultaneous use of instruments, the Yandex Bid Adjustment is applied to the rate set by the Roistat Rates Authority.

Example initial setup

For example, for a campaignBranded - Search - Moscow you are ready to spend 7 rubles.

According to Roistat calculations, this amount is enough to get 10 traffic volume, which corresponds to the 1st place of guaranteed impressions:


If this suits you, then enter the amount from 4 to 7 rubles.
Such a meaning Write-off price corresponds to the strategy2 stars. Click on the strategy selection button and check the description of this strategy in the drop-down menu:

We save the strategy and turn it on Rate Management.

Switching from Rmax to the write-off price

Now in the settings you set not the maximum bid, but the write-off price. Often at high rates, the price written off can be significantly lower than the rate. Previously, you set the maximum bid per click, now in the Roistat interface you manage exactly the target CPC. This allows you to place your ads in higher positions.

If the written-off price is not filled in, then the previous value of Rmax will be taken for it.

Additional features

Campaign management

When you enter the section, a tab opensCampaigns.

On this tab you can:

Manage bids for individual keywords

You can set a value Write-off price both for all campaign keywords (see p. ), and for each of them separately.

To set Write-off price for keywords individually, click on the title of the campaign. On the page that opens, in the keywords table, enter desired values in a column Write-off price . The value is stored immediately:


To cancel entering a new value, press the buttonin the same column.

View statistics for campaigns

Client management collects statistics on advertising campaigns from Yandex.Direct and Analysts Roistat and tabCampaignspresents it as an interactive table.

The table displays the following information:

    h meaningAverage rate by the campaign keyword from Yandex.Direct;

  • values ​​of 10 business indicatorsAnalysts Roistat: Visits, Expenses, CPC, Conversion to requests , Applications, CPL, Sales, CPO, Profit And ROI:


In addition, you can view more detailed campaign statistics for each day of the selected period. To do this, click on the arrowto the left of the campaign name:



Also when you click on the iconNext to the campaign name, the relevant brief statistics for keywords and ads will open:


The table that opens lists all the statuses of the keywords and ads in the campaign. For each of them is displayedcurrent amount And percentage of total clicks.

In this table, you can see, for example, the number of active words or stopped ads for a particular campaign. This is necessary if the number of ads is large and it is quite difficult to figure out which of them are stopped and which are not.

Statistics View Control

You can customize the followingviewing optionscampaign statistics:

    Select the period of time for which you want to view the values ​​of indicators:

To do this, click the appropriate button above the chart:period selection button (click to open calendar)Today , Yesterday , A week , Month , 3 months ;

    Select campaigns by status in Yandex.Direct Active /Stopped :

To do this, click the corresponding button in the upper right corner of the tab;

    Select campaigns by type Search / Context:

To do this, click the buttonAll , Search or Context above the table;

    Select campaigns by name:

To do this, enter the text in the search field:



Controlling Low CTR Ads

Index CTR(from English. click through rate– click rate)allows you to evaluate the effectiveness of key phrases. Thanks toCTR controlyou can automatically disable those keywords that are ineffective for your business.

To use this feature, go to the tabCTR control:


Step 1.First you need to configure the following settings:

  1. Lower CTR threshold– keywords with a CTR below the specified one will be tracked. The value is indicated in the field after the words: Track CTR less;
  2. Lower impression threshold- the number of impressions of key phrases required for triggering CTR control. The value is indicated in the field after the word after;
  3. – set this flag if you want ineffective phrases to be disabled automatically:


Settings are saved with a buttonSave settings .
Step 2After setting, you can turn onCTR controlby moving the switch of the same name to the right. A power-on system message should appear in the lower right cornerCTR control:


Step 3Follow the workCTR control.

A report on its work is displayed in the blockEvents in the form of a table:

The table contains the following information:

    date– date of activation of the key phrase;

    Phrase– keyword with a low CTR;

    In campaign– the name of the corresponding advertising campaign;

    CTR- the value of the CTR indicator at the time of triggering CTR control;

    Impressions– number of impressions at the time of triggering CTR control;

    clicks– the total number of clicks on the phrase at the time of triggering CTR control;

    Event– the current status of the phrase:

    • Disabled– the phrase was disabled because the flag was setDisable phrases with low CTR automatically ;
    • Empty field– the phrase got into the table, because meaningCTRand the number of impressions fell under the configured conditionsCTR control. But the phrase was not disabled, because. flagDisable phrases with low CTR automatically has NOT been installed.

With these statistics, you can find out which of your ads are performing poorly.

Automatic bid optimization

"Optimizer" quickly raises the maximum cost per click, which allows you to trade in a wider range for a given strategy. Hetracks campaigns that show during a given periodROI And Conversion to requests not below the established thresholds, and raises their rates. The frequency of this process depends on the activity of trading on a particular key phrase.

Bid management updates information on Yandex.Direct campaigns every 5-15 minutes. The frequency depends on the number of keywords in the campaign.

To configure, open the tabOptimizer setup and set the following conditions for changing rates:

  1. The value of the indicator in percent:ROI and/or Conversion to requests If campaign ROI is higher ;
  2. The period for which the indicator will be tracked. The value is indicated in the field after the words:for the last;
  3. Percentage you want to raise Write-off price . The value is indicated in the field after the words:increase the write-off price by .

To disable one of the conditions, set the value Write-off price equal to 0 .



Conditions for automatic bid optimization are saved using the buttonSave.

Automatic bid optimization is enabled/disabled on the tabCampaigns. To enable or disableOptimizerfor any campaign, move the switch in the column of the same name to the right or left, respectively:


If as a result of automatic optimizationROI or Conversion to requests drop so much that it becomesbelow the threshold, then Write-off price will return to the previous value, because the campaign will no longer fall under the optimization condition.

If a campaign meets both conditions, then only the larger one will work. If only one condition is met, and the second is not, the rule will work.

For example, you are settingOptimizerin the following way:

  • If ROI Campaigns > 10% in the last 10 days, increase Write-off price by 50%;

    If Conversions to requests Campaigns > 8% in the last 7 days, increase Write-off price by 30%.

In this case, if at some pointROIcampaign will be 11%, andConversion to requests – 9%, then the cost per click will be Write-off price +50%. If in the future ROI or Conversion to requests remain within the values ​​specified in the Optimizer settings, it will remain equal to Write-off price+50% . If these indicators are below the specified values, the value Write-off price will return to the original.

note thatOptimizerdoes not provideconditions when the rate can be automatically made lower than the original value. This is a conscious step, this is our strategy.

Firstly, it makes the mechanism reliable and safe.

Let's take a look at a situation where, for whatever reason, your CRM integration is broken or there are other data problems. In our case, the optimizer simply won't raise the bid again, and that's it. That is, there can be no damage in principle. In case you set the downgrade, there would be direct damage.
Secondly, this mechanism still leaves you the option to specify a lower default bid (i.e. initial value) and a higher growth rate for profitable campaigns. However, a low rate is rarely beneficial. If your ads are in dynamics with a low bid, then they will not be able to become profitable. In this case, the click, of course, will be cheap, but there will be no clicks themselves. And, accordingly, there will be no orders with a profit. As a result, the automatic rate cut strategy will obviously be unprofitable.

We have released a new book "Content Marketing in in social networks: How to get into the head of subscribers and fall in love with your brand.

Many advertisers are sure that after the launch of advertising campaigns, advertising specialists do nothing there - they just sit, count the number of clicks and spend their money, spitting on everything else and never returning to these campaigns. Ah, if only.Optimization of Yandex.Direct advertising campaignsshould be done regularly, only then advertising will be effective and generate income.

Today I want to tell you what happens to an advertising campaign after you hit the magic start button.

backing track

It would seem that the campaign has been launched, there are impressions, clicks too, but the conversion is a little lame, or in general there are a lot of impressions and few clicks. The first thing that comes to mind is to check the requests for which ads are shown. To do this, go to Yandex.Metrica and go to the "Direct - Summary" report:

and select the appropriate groupings that interest us:

In this case, this is a slice by campaign, ad, key phrase from Yandex.Direct, and the search phrase for which the ad was shown:

For example, in our campaign we have the query "makeup school". Having built the necessary report, we see that our ad was shown not only for the query “makeup school”, but also “why can’t makeup go to school”. In this case, the words "why", "impossible" need add as to a phrase or the whole campaign in general.

Why is this needed? Wordstat statistics are constantly updated, users are constantly generating new requests that are not in the system and that you could not even think about. Therefore, you do not need to think that, having canceled everything once and for all, you will no longer have to return to this.

Assessing the positions of your ads

If it seems to you that you are not getting traffic, you need to look at where exactly your ads are shown - in special placement or in guarantee. To do this, you can go to the standard reports in Yandex.Direct and check the boxes that you need, remembering to click in front of the "Position" slice. As a filter - "Type of site" - "Search".

Why is this needed? You can estimate how often you lose on . Perhaps only a slight increase is needed to minimize impressions in the guarantee. After all, whatever one may say, special placement attracts the attention of users more and, as a result, receives more clicks. But it all depends on your budget and capabilities.

Estimating the effectiveness of phrases

It's no secret that often some phrases bring long-awaited orders, and some just drain the budget. If there are no non-target impressions for them, in general everything is fine, but there is no effect, then you can:

  • try to rewrite the ad and evaluate the effect;
  • lower the bid for these requests;
  • reluctantly refuse these requests.

If the phrase is effective enough and brings a conversion, you need to find out if it is possible to get more clicks on it. To do this, see if it often falls under the guarantee and if it can be fixed somehow. Perhaps only a small rate hike is missing, which then pays off with a vengeance.

Exclusion of sites in YAN

Why is this needed? Often, ads are shown on sites that are completely unrelated to your ad. As a result, idle impressions lower the notorious CTR, and ineffective clicks waste the budget.

To understand which sites you do not need, use the following reports:

  1. Report in Yandex.Direct. Here you can evaluate costs by type of site and its effectiveness in terms of impressions, clicks, and costs.

What is useful? You can download the report, sort the sites according to the criteria you need, select those that should be excluded, and add them to "" in the campaign settings.

  1. Report in Yandex.Metrica. In the menu "Reports" - "Standard" there is a report "Direct - sites", which can also be segmented as you need. This is how the report looks like:

What is useful? In Metrica, you can segment the report according to the goals you need, and, therefore, evaluate the effectiveness of the site no longer in terms of costs, but in terms of its effectiveness.

Additional Adjustments

Among other things, you can quickly quick analysis in Yandex.Metrica and set upbid adjustments in Yandex.Direct.

  1. Adjustment for sex and age. To adjust this adjustment, you can use the Age and Gender reports:

Here you can evaluate who comes to your site by age and gender, evaluate who makes more conversions and set up bid adjustments by gender and age. For example, I see that my target audience is women from 18 to 34 years old. Then I go to the settings of my advertising campaign and raise the bid based on these data:

  1. Mobile adjustments. To configure it, you need to go to the "Devices" report:
  • Adjustment for visitors to the site. To configure it, you must have conditions configured. To do this, you can choose from existing retargeting conditions or click on the "Setting conditions" link:
  • And add a new condition:

    As seen, Yandex.Direct campaign optimizationrequires an appreciation of what you are doing and a clear understanding of why you are doing it. Therefore, if in doubt, you should contact the experts, and everything will definitely be fine.

    Gennady Petrovich sells samovars, the cost of a samovar is 1000 rubles, and he sells them for 2000, therefore, he has 1000 rubles of profit from each samovar.

    Gennady Petrovich understands that he can spend part of the profit from 1000 rubles to attract a client. He comes to the Yandex Direct auction, where the auctioneer sits in the center, and the same samovar dealers as our Gennady Petrovich sit in the hall, let's call them participants in the auction. Meanwhile, visitors are standing in the corridor wishing to purchase a samovar, and one by one they enter the auction hall to receive offers from the participants.

    The essence of the auction is that the auctioneer, before launching each buyer into the hall of participants, accepts papers from all participants, on which it is written how much they are willing to pay to show the visitor their samovar.

    Gennady Petrovich writes 1000 rubles on a piece of paper and hands it over to the auctioneer. The auctioneer, after accepting the papers from all participants, selects only 3 participants with the highest bid and invites them to show their samovars to the visitor. In this list, Gennady Petrovich takes the 1st place, since he offered the highest price - 1000 rubles. The participants below offered 100 rubles, 90 and 80 rubles respectively.


    Gennady Petrovich - 1000 rubles

    2nd participant - 100 rubles

    3rd participant - 90 rubles

    4th participant - 80 rubles


    Then one visitor enters the hall and our Gennady Petrovich is the first to come up to him to show his samovar. The visitor does not like the samovar and does not buy it, but Gennady Petrovich gives the auctioneer 84 rubles for showing his samovar. Then the 2nd and 3rd participants show their samovars to the visitor, but the visitor also does not buy anything and leaves the hall, and the 2nd and 3rd participants pay 81 and 80 rubles, respectively.

    Let's digress from samovars to the mechanism for calculating payment for showing a samovar


    On the 1st place you get 100% of the possible clicks
    On the 2nd 85% of clicks
    On the 3rd 75% of clicks


    Therefore, for 75% of clicks, everyone should pay the same, since all 3 places receive them. For the difference in clicks between 3rd and 2nd places (85% - 75% = 10%), the price of clicks should be more expensive. In the same way, the price will be more expensive for the difference between 1st and 2nd place (100% - 85 = 15%). Based on these principles, the calculation of the cost of clicks is based.

    Consider the formula for calculating the maximum Yandex Direct bid for the 1st place, but with knowledge of the theory.


    1st participant cost = 4th bid * 0.75 + 3rd bid * (0.85 - 0.75) + 2nd bid * (1 - 0.85)


    That is, the one who pays for the first place, pays for 75% of clicks at the rate of the 4th participant, then pays extra for 10% of clicks, which gives 2nd place, but already more expensive and still pays extra for 15% of clicks, which gives the first place, the last most expensive.

    Accordingly, the rates of the 2nd and 3rd participants are calculated as:


    2nd participant cost per impression = (4th bid * 0.75 + 3rd bid * (0.85 - 0.75)) / 0.85

    3rd party impression cost = 4th party bid


    These are truncated formulas in which only the essence is left, in fact, everything is more complicated, you can “play around” with the auction in the online calculator, which was made by Andrey Belousov.

    Let's just say that in order to set Yandex Direct bids, you do not need to understand the calculations and the auction mechanism, just read on. But if you are a meticulous person and want to figure everything out on your own, then good material is presented in the official documentation.

    Let's get back to the samovars, let us recall that Gennady Petrovich put up a bid of 1,000 rubles and paid 84 rubles for the show. The participant in 2nd place paid 81 rubles for a bet of 100 rubles and the participant in third place paid 80 rubles for a bet of 90 rubles. Let's write the data to the table.

    Participant Bid Cost per impression
    Gennady Petrovich 1000 84
    2nd participant 100 81
    3rd participant 90 80
    4th participant 80 -

    How were the calculations made?


    Cost per impression of the 1st participant = Bid ​​of the 4th * 0.75 + Bid of the 3rd * 0.1 + Bid of the 2nd * 0.15 = 80 * 0.75 + 90 * 0.1 + 100 * 0, 15 = 84 rubles

    2nd participant cost = (4th bid * 0.75 + 3rd bid * 0.1) / 0.85 = (80 * 0.75 + 90 * 0.1) / 0.85 = 81 ruble

    The cost of displaying the 3rd participant = Rate of the 4th participant = 80 rubles


    Well, we figured out the calculations, now a new task, after the first auction, Gennady Petrovich estimates that if he pays 84 rubles for each show of his samovar to a visitor, then at least 1 out of 12 visitors should buy a samovar from him otherwise he will go into the red.


    Expenses = 84 rubles * 12 impressions = 1008
    1008 > 1000 profit from the sale of one samovar


    Gennady Petrovich realizes that he needs to understand how many visitors will be converted into buyers, he assumes that it will be 1 out of 12, that is, ~ 8%, and calculates the optimal rate using the formula:


    Bid = Profit per sale * Percentage of conversion from impressions to sales

    Rate \u003d 1000 rubles * 0.08 \u003d 80 rubles


    That is, what is 80 rubles? This is the profit that Gennady Petrovich receives from each show of a samovar to a visitor, provided that 1 out of 12 visitors buys a samovar. We are now, as it were, considering profit not at the level of sales, but at the level of impressions - realize it.

    Further, for 20 visitors, Gennady Petrovich assigned a rate of 80 rubles and received only 12 impressions of the samovar, since his rate did not always fall into the top three of the highest rates of all participants. Out of 12 impressions, Gennady Petrovich received 1 sale, but at the same time he paid 500 rubles for the impressions. We repeat once again that Gennady Petrovich paid for each show not 80 rubles, but less, let's look at the example of one auction.

    Participant Bid Place Cost per impression
    1st 100 1 48
    Gennady Petrovich 80 2 42
    3rd 60 3 41
    4th 40 - -

    Total profit amounted to 1000 profit from the sale of the samovar - 500 expenses for shows = 500 rubles

    Gennady Petrovich guessed right from impressions to sales conversions and received the maximum possible profit. This is a property of the Yandex Direct auction, it is profitable for you to buy any impression if it costs less than your profit from the impression. If Gennady Petrovich made a mistake and calculated the rate with a conversion of 16%, and not 8%, then the rate would be 160 rubles.


    Rate \u003d 1000 rubles * 0.16 \u003d 160 rubles


    That is, Gennady Petrovich would buy clicks for 160 rubles, when the profit per click is 80 rubles, which is why the accuracy of calculations is so important.

    That's it, that's the whole auction. For simplicity, the example used a lot of assumptions, but does not change the essence.

    This whole story boils down to a simple optimal bid formula:


    Bid = Profit per sale * Conversion


    Why was everything simple before, you only had to set any bet and calculate the profit? - Previously, the competition was lower. For example, remember the example above, when Gennady Petrovich placed a bid of 1000 rubles and paid 84 rubles for the show - this was the case before. But over time, the competition “warms up”, there are players who increase the conversion of their landing page, reduce prices, expand the range, therefore, they convert not 1 out of 12 impressions, but 1 out of 3, then the rate will be calculated as


    1000 rubles profit from the samovar * 0.3 = 300 rubles


    In this case, efficient players force out the rest, and people like Gennady Petrovich are faced with the choice of either leaving the market or being efficient and calculating bets correctly.

    What nuances are present in the calculation of the optimal rate?

    • Conversion rates vary based on seasonality, day of the week, ad competition, weather, economic conditions, and an infinite number of other factors;
    • Lack of data, for example, if there was one click and one conversion (sale) for a keyword, then it is not a fact that now there will be a conversion with every click, we will return to this below;
    • The conversion varies depending on the price of the product. If your price is below the market average, then the conversion will be higher, and if it is higher, then vice versa. The problem immediately arises that our profit varies depending on prices, therefore we need to look for the optimum between the number of sales and the price;
    • How all this data is regularly collected and updated rate;
    • If your site is in the TOP3, then you are not always profitable impressions on contextual advertising;
    • Any deviation in the rate calculation will eat into your profit;

    Yandex Direct optimization tools

    How to automate the bid calculation process? The market offers the following solutions:

    Bidders - present in the services elama.ru, directmanager.ru, etc.

    Consider the first, bidders - they do not make sense in the current Yandex Direct auction device. In fact, inside the bidder you specify the maximum bid, which you could just as well indicate inside the Yandex Direct interface and nothing will change! Why are they used? - From misunderstanding of the auction mechanism.

    Rule assignment services - K50 rules, self-written scripts, rules in Adwords

    Let's consider a way to manage campaigns through the assignment of rules, this already makes more sense. For example, we have a rule that disables words with more than 100 clicks and no conversions. But in good semantic cores the tail of low-frequency queries stretches very far and if you wait until each keyword gets 100 clicks, you can go bankrupt! That is, roughly speaking, the rules optimize about 20% of the possible potential. And more complex systems of the rules are difficult to use and too cumbersome to manage.

    Conversion Optimizers - K50, Origami, Alytics and more

    The next ones, conversion optimizers, are the most advanced solutions, but expensive, for example K50 costs 50 tr/month, and Origami 10 tr/month. If we estimate that they can increase efficiency by 10% on average, then it turns out that it is rational to use K50 from 500 tr., and Origami from 100 tr.

    We tried to implement all 3 optimizers, Origami and Alytics have rather limited functionality, they failed to implement. Disclaimer, my conclusions about optimizers are NOT based on custom research! We took each optimizer and tried to implement for 1-2 projects in a couple of weeks (based on the click history), and if there was little sense from this, then we left.

    K50 is the best optimizer, best support, but in order to use its potential by 100%, you need a fairly high competence, since there are a lot of settings inside the interface.

    There are also Adlens and MarinSoftware, their cost starts from 200 tr per month, it is rational to use them with a budget of 1 million, but I think we will omit them in the article.

    Let's draw your attention to the internal optimization tools of Adwords and Yandex Direct, they work no worse than external ones and are easy to set up, but have limitations.

    • Firstly, the campaign must have at least 30 conversions per month and they must be evenly distributed across keywords, which is not always the case.
    • Secondly, you cannot import third-party data into Yandex Direct, for example, calls, offline sales, pending sales.
    • Still others require that one campaign contains keywords from approximately the same product category.

    In a real situation, it is quite difficult to adapt to such requirements.

    How to set the maximum bid in Yandex Direct?

    Consider the simplest mechanisms that can be repeated in Excel and adopted for self-optimization Yandex Direct.

    Recall the formula


    Bid = Average check * Margin share in average check * Conversion


    Let's try to calculate bids for the Lego category and for a keyword within that category. For example, we know that the average click-to-sale conversion rate for the Lego toy category is 2% and the average check is 3,600 rubles. In the same category, there is the keyword "buy lego duplo", the average check of which is 9,000 rubles, and the conversion is 4%. Let's try to calculate these two cases using our formula, assuming that our margin on the average ticket is 30%:


    0.02 * 3600 * 0.3 = 21.5 rubles

    0.04 * 9000 * 0.3 = 108 rubles


    Recall that in the formula, percentages are converted into shares, for example, 30% \u003d 0.3 or 2% \u003d 0.02

    That's it, we calculated the bids for the category and for the keyword, but there is a problem: the keyword has only 10 clicks, which is very little, let's calculate its error in Excel using the formula:


    √(1 - Conversion) / (Conversion * Number of clicks)


    Counting in Excel

    ROOT((1-0.02)/(0.02*10)) = 221%


    That is, the conversion with 10 clicks may differ from the real one by 2 times, and any error eats up your profit. Consider how the error changes depending on the number of clicks.

    We need some kind of mechanism that will fill in the missing data part of the keyword with data from the category. This mechanism is called pulling and its formula is:


    Word conversion = Number of conversions per word + k-pulling / Number of clicks per word + (k-pulling / Category conversion)


    k-pulling - controls the influence of the predicted value on the final conversion, we will take the default unit. This value needs to be selected separately for each case by enumerating and reducing the error on two periods, but now it will complicate your understanding, so just use - 1.

    Let's take a look at how pulling works with an example - intuitively understand how it works!

    Let's use pulling for our Lego case


    (10 * 0,04) + 1 / 10 + (1 / 0,02) = 1,4 / 60 = 0,023


    In other words, we took a category conversion of 2% and added 0.3% to it, this is how the impact of 10 keyword clicks is estimated - at 0.3%, if there were 80 clicks, then we would have added not 0.3% and 1.2%, let's calculate:


    (80 * 0,04) + 1 / 80 + (1 / 0,02) = 4,2 / 130 = 0,032


    That is, the more clicks a keyword receives, the less dependent it is on category conversion.

    Okay, we figured out the conversion, but what to do with the average check? We use a similar pulling formula.


    (Average Word Check * Number of Word Transactions + 1 * Average Category Check) / (Number of Word Transactions + 1)


    Let's see how it works

    An example with Lego at 80 clicks.


    (9000 * (80 * 0.02) + 0.5 * 3600) / (80 * 0.02) + 0.5 = 16,200 / 2.1 = 7,700 rubles


    As you can see, the average check also began to smooth out with the growth of transactions. Now we need to somehow apply all our new knowledge in practice using Excel formulas.

    Note that we use data from particular to general, that is, first we use data by keyword, if there is not enough, then we take data by category, if there is not enough data by category, then we take the average data for the site.

    Calculate Estimated Conversion

    We start the construction with what is always known - the average conversion of the site and the average conversion by category, so it will be more convenient to build the construction in excel.

    =(URL conversions + 1) / (URL clicks + (1/ Average conversion site))

    Add a scenario when there is no data on the URL using the IFNA(value; value if there is no data) function

    IFNA((URL Conversions + 1) / (URL Clicks + (1/ Average Site Conversion)); Average Site Conversion)

    And add data by keyword

    IFNA((Keyword Conversion + 1) / (Keyword Clicks + (1/ IFNA((URL Conversions + 1) / (URL Clicks + (1/ Average Site Conversion)); Average Site Conversion))) ; IFNA((URL conversions + 1) / (URL clicks + (1/ Average site conversion)); Average site conversion)))

    As a result, we have

    That's it, the gray wolf is not so scary, the average check is considered similar

    IFNA((Average URL Check * Number of URL Transactions + 0.5 * Average Website Check) / (Number of URL Transactions + 0.5); Average Website Check)

    And we will calculate the optimal rate in Yandex Direct


    Predictive Conversion * Predicted Average Ticket * Margin Percentage of Average Ticket


    An example of calculations can be found at the link in Google SpreadSheets

    In order not to load the article with five-story formulas, the topic is covered in more detail in another article.

    As you noticed, the accuracy of calculations directly affects the profit, so it should be as high as possible. In order to reduce the error of the conversion forecast, you need to collect as much data as possible.

    • conversion is affected by time, as in December they buy better than in January.
    • the level of your price for the product affects the conversion, because if your price is lower than the average market price, then the probability of selling is higher
    • pizza sells better in bad weather
    • why not use organic search traffic for keyword conversion prediction to increase accuracy

    As you can see, the task becomes non-trivial and requires many calculations and data; in Excel, all this is too expensive to calculate. K50 solves this issue, but does not use all the data, we write custom solutions in Python at our agency, next time we will write an article on how we use machine learning in conversion forecasting.