Challenges of Bid Management Tools

Were you thinking that if this is the best solution then it's trouble-free? I wish that were the case. Unfortunately, because bid management systems (with or without an ROI optimization feature) make it delightfully easier to micromanage paid listings, there's more data to watch.

Management of Bid Management Tools Required

It seems counter-intuitive. You're choosing a bid management tool to eliminate your time updating bids manually. Tools that maximize listings based on your ROI targets should alleviate your stress of achieving profitable sales too, right? These tools do help. Nevertheless, there are plenty of details that demand your watchful eye. Writing from personal experience, avoid a few future surprises by being aware of the potential problems listed in the following sections.

Inaccuracy of Search Engine Data

Does your bid management tool report search engine data in real-time? Ask them, and routinely compare their report to those from search engines. You might need to wait a few days before you report the number of clicks, sales, and associated click fees to your boss, or clients , because you'll miss updated data.

Nonremoval of Nonperforming Listings

What happens if your listings have already been demoted to the lowest possible bids on PFP search engines and they're still losing money? What if you're paying a low, fixed click fee for Trusted Feed listings that don't convert? Bid software won't remove listings for you, nor will all ROI bid management firms. Ask how this is handled and how you're alerted. Don't assume your listings can't drain your pocketbook if they're in the lowest -paying spot.

Hiccups Caused by Search Engine Changes

Bid management software owners frequently have to download newer versions, or experience usability problems for several hours with their current version, when search engines make changes to their ad-serving technology.

Clients of ROI bid management firms aren't free from problems either; their listings may be temporarily stuck in unprofitable positions .

For marketers who spend thousands of dollars per day and must adjust their bids constantly, these setbacks can be costly.

Are your bids or CPA targets outdated ? Your bids or CPA targets could have mysteriously reverted to your previous numbers , or a system default number. Potential technological glitches coupled with human error mandate that marketers routinely review the various components of their campaigns to catch recent or longstanding errors.

Can't Yet Track All Online Marketing Efforts

If you are a do-it-yourself search engine marketer, a bid management tool is my first choice for a search engine ROI tracking solution. This technology could easily be applied to tracking other marketing campaigns, including email, banner ads, and content sponsorships. Unfortunately, it's not yet a complete online marketing ROI tracking solution.

A few of the solutions mentioned in this book have the capability to track other online marketing efforts. But at this time, no other solution can effectively manage PFP and Trusted Feed as well as the bid management tools do; more specifically , they can't do it as well as the firms that optimize campaigns based on ROI goals.

It's disappointing that there isn't an extension within most bid management tools to track other Internet marketing efforts. A few firms are venturing into this space: GO TOAST, Send Traffic, and Sure Hits, to name a few. Other bid management tool vendors will likely soon offer a general conversion tracking tool as an integrated part of their bid management software or service. Or, it could be sold as a stand-alone item. If you're already using a bid management tool, inquire about this option and delivery timeline from your vendor.

Costs Can Be Difficult to Estimate

Bid management is a more difficult pricing model to evaluate as compared to other ROI solutions because there are so many options within this category.

Software purchase prices are easy to determine; at a few hundred dollars this option is very affordable, even for budding entrepreneurs. A few software vendors ‚ such as PPC Management (PPC Pro) and BidRank ‚ offer an ROI tracking feature. These software products don't update bids based on ROI performance, but at least advertisers can see their campaign profitability at a granular level, and then use the software to manually improve their results as often as possible.

Confusion enters the scene when it comes to bid management firms' costs. These Application Service Providers might charge a percentage of the total keyword media cost, a flat monthly fee, a per-click rate, a per-keyword rate, or any combination of these. These prices can seem expensive to new advertisers. Theoretically, the firms that optimize paid listings for maximum profitability by using CPA targets, such as Did-it.com or GO TOAST, should easily cover their own service fees in the higher profits they'll provide. Collect costs from multiple vendors to determine which appears to be the most cost-effective for your business. And if you represent a company with a lot of paid listing traffic potential or an agency that works with multiple clients, remember to negotiate!