I am asked often, as pay-per-click “professional”, why do I not use bid management software. Arguing against PPC automation is often futile in the search marketing community. We are often bombarded with software vendors that seem to dominate the conversation. Our voice, from an in-house perspective, is often shunned.
First, let me clear up one misconception on why I do not use bid management software: Job Security.
The concern of losing my job has nothing to do with not using pay-per-click automation software. I have plenty of day-to-day tasks that keep me busy, along with pay-per-click. From search engine optimization to social media, and various projects in between, there is not a lack of work in the online marketing world. Plus, anyone that has used a pay-per-click bid management software, knows that it’s not a “set it and forget it” program. It requires maintenance and reporting as well. Bid automation does not replace people. Hopefully, we all agree on that.
I have listed below my major reasons for saying no to pay-per-click automation. It is important to note, I am assuming a company has a quality pay-per-click manager on staff. If not, that is where the investment should be, not in software.
Last Click Theory
By the nature of analytics, it is often only the last click that gets credit for the sale. However, the research process starts many keywords and many weeks before. Setting up automated rules based on conversion does not take into account the early keywords.
Also, pay-per-click automation tools do not take into account non-PPC efforts. It’s often display ads, offline campaigns, or press releases that strike the interest of a consumer. Keywords are needed to support those efforts. Those initial keywords may not see the conversion, but they most definitely played a major role in the revenue.
Timing delays and seasonal demand
Often bid rules are based on timing. For example, if keywords perform poorly over a 30 day period, then spend on those keywords are adjusted accordingly. In a vacuum, that makes sense. But if you are a seasonal company, those 30 days are a lifetime. Things change in 30 days.
That 30-days is just one example, but it is not uncommon for timing delays in performance not to match up with seasonal issues. Human interaction is still needed to prevent these rules from executing. In fact, are the rules even needed at all?
In general, pay-per-click automation is reactive. It reacts to data and makes adjustments. Marketers need to be proactive, especially seasonal marketers.
Quality Score
Automated bid management software takes quality score into account at a minimal degree. Their solution to getting better rankings is to bid higher. Search engines are no longer this simple. Pay-per-click marketing includes quality keywords, relevant ads, great copy, and landing page relevancy. These influences are not measured in many bid management tools. Quality score plays a stronger role now than ever.
People are cheaper and smarter
The cost of a pay-per-click automation program is normally a large flat fee or a percentage of spend. Either way it is often a substantial part of a companies marketing investment.
If managing pay-per-click turns out to be extensive work for a PPC Manager, then it makes more sense to invest that money into an analyst to help with that work. A PPC Analyst can be trained on landing page creation, keyword research, seasonal issues, and various non-PPC efforts that will affect campaigns. In other words, that analyst can be trained to be proactive.
So, although it is easy to be persuaded by an industry full of software vendors selling automation, stand strong. Pay-per-click is too sensitive to be handled by automation.
More From John Ellis
- Pay-Per-Click Tip: It’s not about the keywords
- 5 Guideline for Campaign Landing Pages
- 3 Steps to Keyword Success - PPC Video of the week
Tags: Bid Management, in-house, Pay Per Click, PPC
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