Bid Management Software is a tool used by many PPC Managers to automatically manage a campaign for a number of important aspects of campaigns including Cost Per Click and ad positioning. Bid Management Software general combines the information from the analytics of a website and the data from a PPC campaign. It takes this information and looks at each key phrase and the performance on it when using a certain ad, when positioned in a certain level in the sponsored links and sometimes when people land on different pages within the site. The software then makes a decision on what position and ad should be displayed at and the cost per click for key phrases which had a high success rate. This allows for the budget of particular key phrases which are under performing to be pushed into phrases which are bring better ROI.

In general managing a Pay Per Click Campaign is to better ROI and on a manual basis it is also possible to reduce the cost per click based on performance although it requires many more man hours but in many cases this way is much more accurate and allows for a better long term understanding on the campaign and the direction for better ROI.

Here are some advantages and disadvantages.

Advantages

• Decrease the time required to manage a campaign on as it does not require as much intense monitor to a key phrase level

• Make better use of budgets for certain key phrases

• Advanced positioning for improved Click Through rates

• Reduced management time for large campaigns

• Possible increase in ROI

Disadvantages

• No way to manage landing pages correctly

• Use of brand building key phrases will have reduced Costs and lower Click throughs as the conversion rates are no usually as high

• No way to deal with first visitors

• No way to deal with seasonal changes

• Still requires intense management

How could they be improved?

Using a Automated Bid Management tool in many ways can benefit a Pay Per click campaign but still requires intense monitoring. As the tools further advance to allow for times of day tracking and landing page analysis with the process become even more advanced. Google’s huge collection of tools such as the conversion Optimizer and Web Optimizer working together may be able to help with this and both are free, but it is almost impossible to deal with important human edited areas such as first time visitors key phrases, branding key phrases and the intelligent behind landing pages and website usability at a key phrase level.

Overall the use of automated bid management tools can help on large low cost per click campaigns but campaigns which require intense monitoring to improve conversions it well always be better to use automated systems as a backup to intense human management.