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PPC Bid Strategy Increases Conversions by 159%
One Hanapin client provides glass repair and replacement for homes, automobiles, and businesses. They serve multiple locations across the United States and offer 24/7 emergency glass services. PPC is a major driver for their complex business.
Here at Hanapin, we strive to test new features on behalf of clients. We strategically use our Google representatives to recommend tests for specific clients to improve campaign performance.
Although our client’s remarketing campaigns were performing well, the Hanapin team hypothesized that by using a different bidding strategy, it would be possible to decrease the cost per lead while increasing overall conversions.
Testing Max Conversion Bid Strategy
In the past, our team has seen mixed success with bid strategies depending on campaign type, but felt it could work well for this client’s remarketing campaigns. To test this theory, our team set up an experiment for some of the remarketing campaigns.
We tested the max conversion bid strategy first on 3 out of 5 remarketing campaigns. Each remarketing campaign focused on a different location. We tested this bidding strategy on 3 campaigns instead of just 1 because success on 1 campaign does not indicate success for all.
During the test, costs were mostly down. We also saw significant campaign improvement. One of the test campaigns had a reduced cost per click of 76% and a conversion rate increase of 392%.
The other campaigns without this bid strategy remained flat during the same time period.
The results seemed too good to be true, but were clear. The test was successful.
Applying the Strategy to All Campaigns
After a successful test, we rolled out the max conversion bid strategy to all 5 remarketing campaigns. Ultimately, cost rose 4% total, when compared to the previous period. However, we paid for placements that actually converted instead of those that did not. The cost per lead came down 60%, and conversions came up by 159%.
Max conversion bidding is not a silver bullet. We have not seen the same success with this strategy on search campaigns. However, we have applied max conversion bidding to several remarketing campaigns since this client’s, and all have improved. Our theory is since this bid strategy is designed to place ads where they are more likely to convert, it may remove lower-converting placements, such as mobile app placement (which Google forces for campaigns), which tend to also drive up costs. We at Hanapin recommend testing different bidding strategies on your business’s campaigns to see what works best.
The impact of this new bid strategy stretches beyond a lead increase, however. Our client has reported a revenue increase to back up the quality of the leads obtained through this campaign. By changing the bid strategy, not only did we increase quantity, but we increased quality in leads as well.
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