I've posted in the past about PPC bid automation and the need for reporting. However, since Yahoo!'s new panama system, the landscape of bidding has changed significantly. Question: Has the need for your bid automation gone up or down?
For myself, Yahoo! was really the only "beast" of the bunch, since they relied heavily on the straight pay for placement model for so long. Now with the newer Panama update and the closeness to Google, i must say that our overall need for automation has gone significantly down. The need for constantly adjusting bids based solely upon getting good placement is now in the control of the little back box that we all came to love or hate.
Regardless, bid automation companies such as Dynamic software, Bidrank, and Atlas Search continue to boast the benefit of having a computerized software manage your bidding strategies. On the other hand, as bidding moved to an average position and cost mode game, bidding automation has become smarter in the sense that it can manage campaigns/bidding to ROI or CPA (Define) goals. Additionally, Google and Yahoo both now have entered the automation scene with Free tools such as Bid Optimizer and Yahoo!'s Analytics (Formerly search optimizer). As with anything however, i recommend that one should proceed with caution. Without human intervention a computer's perfect scenario could be a marketers worst nightmare.
Consider a couple of examples. Say your client/advertiser is more concerned about brand awareness rather than of the goals of CPA or ROI? Sure a bid automation program could bid "top guns" for you, but is that really worth 5K a month investment in an expensive software program?
Or what about a company that doesn't have a product or service that is strictly an impulse buy? Or even worse, phone calls and related sales outweigh online performance. Where's the software's easy button for that?
All of the above points to just some of the complexities of running paid search advertising regardless of what bid strategy is employed. Sure, you can argue other hidden benefits (which we'll get to in just a second), but when it comes down to it, its really about cost and what you can afford.
All things aside, their is no Grey area solution for those in between. And by that i mean, the benefits that bid automation companies offer…without the need of bid automation. What?!? Say that again?
Allow me to clarify. I'm talking about namely modeling, reporting, and client interaction. In a nutshell, modeling refers to analyzing trends and predicting (with some degree of confidence) where things are headed given past historical data.
Reporting, probably the most overlooked and greatest need, is left in the hands of either your advertising partners platform or a third party analytics program where playing the memory game between the two is crucial…unless your willing to shell out a few bucks. Sorry Google analytics, but thats ok because your free:) Lets face it, reporting is cumbersome without a third part involved due the fact that the major three (Google, Yahoo, and MSN) all have different reporting procedures. Gee, it sure would be nice to have a simplified solution without the need of additional tracking cookies, javascript, pixels, ect. Like we need more of that!
Lastly is customer interaction. If your a SEM/Internet Marketer, your client likely has only two forms of contact with your company. Either with you or what you can give them. Tangibility more or less, is what a client will look for in the long run. Providing great looking reports or a client login center is really the only the tangible items (aside from experienced results) you can give your client besides your word.
If you've shopped th bid automation industry, i think that you'll agree with me that their is no happy middle solution. Its either a one time charge without the bells and whistles or a heft monthly price tag that requires a Multi-million Dollar ad spend budget. So tell it to me frankly, whats in your arsenal for handling this delimma?
[tags] ppc advertising, ppc bid automation, ppc bid management, pay per click [/tags]