| The Bidding Level will allow you to control the increment or decrement of your bid changes between your current MaxCPC and the New Bid.
Please note that the software aims to get to your target position incrementally, rather than immediately. This is a cost saving measure and will save you money in the long run.
With the “Aggressive”, “Normal” or “Conservative” Bidding Levels, instead of determining your own “Preserved Bid Value”, we have come with a pre-set configuration for you to choose.
An “Aggressive” Bidding level will have a high increment or decrement value between your Max CPC and the New Bid. As for the “Normal” Bidding level will have a medium increment or decrement value, And the same logic for “Conservative” bidding level, it will have a low increment or decrement between you Max CPC and the New Bid.
For example, your Current Position is #5 and your MaxCPC is $0.30, and you want to be #1 position. Let’s assume that to bid to #1 position, you need to raise your MaxCPC to $0.85. Here is How it works:
Please note that we cannot provide you with the formula we’re using since it’s the core of our bidding algorithm.
If you choose the “Aggressive” bidding level, (for this example) the New Bid is $0.70 (Max CPC: $0.30 + $0.40). The program will increase your bid amount by $0.40 the first time and check if your position has changed or not, let’s say have and now in #3, and based on your bidding level, the program determine your New Bid as $ 0.90 (the last New Bid value(Max CPC) $0.70 + $0.20), the program automatically reduces your New Bid increase because your position has improved. Now you’re in # 1 because your Max CPC is $0.90 but you’re still paying too much for your target position ($0.05).
Once a keyword has reached its target position, the program automatically tries to reduce the New bid. Since you’re using the “Aggressive” bidding level, the decrement value will be bigger than the “Normal” or “Conservative”, for this example, the new bid value is $0.80 (the last New Bid value(Max CPC) $0.90 - $0.10) and with $0.80 your position changes to #2. The program then will increase again the new Bid value to $0.90 and the same cycle repeats itself.
The benefit of using the “Aggressive” bidding level is that you can get to your Target Position quicker (in this case, it takes 2 updates) than the “Normal” or the “Conservative” bidding levels but the downside is the overpay is most likely to be bigger than the “Normal” or the “Conservative”
The same logic applies for the “Normal”, since the Increment or the decrement value is lower than the “Aggressive” bidding level, consequently it will take more updates to get to the target position. For the above scenario, the “Aggressive” needs 2 updates, for the “Normal” it end up taking 3 updates to be #1. The positive side for this is since the increment or decrement value is smaller than the “Aggressive” bidding level, The overpay value is also smaller. For this scenario, is $0.02
The same logic applies for the “Conservative”, since the Increment or the decrement value is even lower than the “Aggressive” bidding level, consequently it will take more updates to get to the target position.
For the above scenario, the “Aggressive” needs 2 updates, for the “Conservative”, it end up taking 4 updates to be #1. The positive side for this is since the increment or decrement value is somewhat smaller than the “Aggressive” bidding level, The overpay value is also smaller. For this scenario, is $0.01.
If your target position is quite far from your current position, you can start off with the “Aggressive” bidding level to quickly take the keyword to your target position and switch to the “Conservative” bidding level to have the minimum or even no overpay for your target position.
With the “By Preserved Bid Value”, It uses this formula to calculate the New Bid:
New Bid = (Current Position - Target Position) * Preserve value + Max CPC.
For example, your Current Position is #5 and your MaxCPC is $0.30, and you want to be #1 position. Let’s assume that to bid to #1 position, you need to raise your MaxCPC to $0.50. Here is how it works:
1. If your "Preserve value" is 0.01, the program will use this formulae to calculate your new MaxCPC (New Bid):
New MaxCPC = (5 - 1) * 0.01 + $0.30 = $0.34
In this case, the program will increase your bid amount $0.04 the first time and check if your position has changed or not, if not, the New Bid will still be increased by $0.04, if yes, the increase will be recalculated since the position has changed and comes up with the new value, this process is repeated until you reach your Target Position #1. To achieve this, the program might need to perform 5 updates. If you set your Scheduler interval to update bids every 24 hour, it may take 5 days to achieve your target position
If you set a higher Preserve Value, for example to $0.05, the program will increase your bid by $0.20
New MaxCPC = (5 - 1) * 0.05 + $0.30 = $0.50
as you can see above, the program only takes one update to achieve your Target Position #1
Please NOTE: the program will use the same logic when reducing your Bid Value.
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