The rule for reducing bids for words with a high CPA/CPO

This rule can be configured for search and network campaigns, for Yandex.Direct and Google Ads.

Before configuration, make sure that the data at the keyword level is imported in full to the K50 statistics: that is, not only indicators from the ad system are available (clicks, expenses, average display position) but also indicators of the analytical system (for example, sessions and goal achievement).

If this data isn't available, make sure that the ad campaigns are marked up correctly and UTMs have all the necessary parameters for data matching. Learn more about retagging in Google Ads Learn more about retagging in Yandex.Direct

You need to answer two questions before creating an event:

  1. How often should the event be executed? The rule frequency should logically correlate with the period for which the rule will take statistics. To learn more, see this article

  2. At what level is it necessary to manage bids? These can be keywords, ad groups, or campaigns

How to think through the logic of events to reduce bids?

Let's review a specific example of an account in Yandex.Direct when such a rule will be effective and justified:

Let's say a client has the following indicators for a week:

  • Number of clicks = 1000

  • Expense = RUB 45,000.

  • Conversion rate = 1%

  • Number of achieved goals = 100

  • The client's target CPA is RUB 350.

It appears that the CPA was exceeded by almost 30% by the end of the week. In this case, we already have enough reasons to reduce the bids.

So, we'll reduce the bids once a week by 15% for the words for which the goals were achieved during 2 weeks and which had the CPA higher than RUB 400. AND for the words for which the expense was higher than RUB 500 and there were no goal achievements.

We indicated RUB 500 as the expense on phrases because if a word results in the conversion on the 401st ruble spent, it won't stop being effective, and it's advisable to create a buffer expense for words without conversions that should be slightly higher than the target CPA.

There must be more than one goal achieved for the phrase because the first goal may have been accomplished by accident.

If you have few words for which the CPA is exceeded and the expense for each keyword is small, but you have a lot of keywords, you might want to focus on the statistics of an ad group or campaign and carefully reduce bids for the entire group or for the entire campaign to optimize indicators.

In this article, we'll cover the configuration of two events:

  1. An event for lowering bids based on keyword statistics. For accounts with a lot of statistics on keywords

  2. An event for lowering bids based on campaign statistics. For accounts with a small amount of data at the keyword level.

Event 1. Based on keyword statistics

Let's create the first event based on keyword statistics. For accounts with a lot of statistics on keywords.

Go to the Events tab to create a new event.

Enter the name and then set the execution frequency (once a week).

Select the campaigns this event will be applied to:

  • The entire account (click Add all and then Remove allto roll back all changes).

  • Certain campaigns with poor performance (randomly click on different campaigns and then Remove allto roll back all changes).

  • A group of campaigns marked with a tag in the statistics table (click on the tag that I created in advance under the list of campaigns: Top → Add all)

Let's create a rule in the event. Click Add a rule in the section above.

The rule will have two groups of conditions (conditions at the phrase level) combined by the OR operator.

Create two groups of rules, each with two conditions.

CPA of the phrase in 2 weeks > 400 goals (transactions) on the phrase in 2 weeks > 1

OR

Goals for the phrase in 2 weeks = 0 Expense for the phrase in 2 weeks is greater than RUB 500.

We indicated RUB 500 as the expense on phrases because if a word results in the conversion on the 401st ruble spent, it won't stop being effective, and it's advisable to create a buffer expense for words without conversions that should be slightly higher than the target CPA.

If the event is configured for all campaigns of the account, but you need to reduce bids on phrases only in campaigns with a high CPA, add the following to each group of conditions: campaign CPA is greater than RUB 400.

Next, let's set up the action Change bid on search (you can also add an action for YAN if you have such campaigns), select Current rate * 0.85, and set max and min bids.

Now, we need to go back to the event. Scroll up in the Rule and click Go back to event

Before starting an event, we always recommend performing Preview. This will help double check the selected settings and make sure that everything is correct. After the preview, the report on the event will be sent to Notifications and reports. After you view the report, you need to activate the event, after which it'll start running on schedule.