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.