Why Does Ad Badger Reduce Bids to Minimum Bid?

A bid may reach the minimum bid threshold in two key scenarios:

    1.    High ACoS Performance Adjustment

    •    If a keyword has orders but is consistently exceeding the target ACoS, Ad Badger will lower the bid to bring performance in line with the goal.

    •    The system will continue adjusting to reach the target ACoS efficiently.

    2.    High Clicks, No Conversions

    •    If a keyword is accumulating a lot of clicks but no orders, Ad Badger will gradually reduce the bid to minimum to prevent wasted ad spend.

    •    This helps cut losses on underperforming keywords.

What Happens Once a Keyword Reaches Minimum Bid?

Once a keyword is at the minimum bid, Ad Badger evaluates its impact on campaign performance:

Scenario 1: The Keyword Hits Target ACoS at Minimum Bid

    •    If the keyword performs well at the minimum bid and helps achieve target ACoS, it will continue running at that level.

    •    This is the ideal outcome.

Scenario 2: The Keyword Loses Clicks and Becomes Suppressed

    •    If the keyword continues to perform poorly even at minimum bid, Ad Badger will begin to suppress it for a period of time.

    •    The length of suppression depends on overall campaign performance:

    •    If the campaign is performing better than target ACoS, Ad Badger enters a more aggressive testing mode, meaning it may attempt to increase bids on some suppressed keywords.

    •    If the campaign is over target ACoS, Ad Badger remains conservative, keeping underperforming keywords suppressed longer.


How Can You Influence Whether a Keyword Reaches or Stays at Minimum Bid?

If you want to adjust how Ad Badger handles minimum bids, you have several options:

1. Adjust Minimum Bid Settings

    •    You can increase the minimum bid on a per-keyword or per-campaign basis.

    •    This prevents Ad Badger from lowering bids too far while still maintaining automation.

2. Make One-Time Bid Adjustments

    •    You can manually select multiple keywords at minimum bid and apply a percentage-based bid increase.

    •    Ad Badger will then adjust from this new bid level while maintaining automation.

3. Monitor Campaign ACoS Trends

    •    Since Ad Badger adjusts bidding strategy based on overall campaign performance, improving the campaign’s ACoS may allow more flexibility in bid adjustments.

    •    For example, if your campaign is below target ACoS, Ad Badger may allow suppressed keywords to re-enter bidding with slightly higher bids.