If Ad Badger is consistently lowering the bid for a keyword that is considered a 'very strong converter,' it's essential to understand that the bidding algorithm is functioning as intended. The confusion often arises when a keyword is recognized as a strong performer, but the bidding strategy is based on RPC (revenue per click).
Here's a breakdown of the process:
If a keyword has a high number of orders, indicating strong performance, but the associated ACOS (Advertising Cost of Sale) is also high (e.g., 300%), Ad Badger may decrease the bids.
The optimization is aimed at maintaining a balance between strong conversion rates and cost-effectiveness. In situations where the RPC (revenue per click) is lower than desired, bid adjustments are made to align with the overall campaign goals.
A helpful suggestion for clients in this scenario is to consider increasing the campaign target ACOS. This adjustment can lead to a higher RPC_Based bid, allowing for a more effective balance between conversion performance and cost control.
If you have additional questions or require further clarification, please feel free to reach out. We're here to assist you in optimizing your campaigns.