The cost of Baidu's bidding promotion is too high and the effect is declining. Where should we look for the problem?

The Chinese New Year is just a few days away, and many companies have already had their holidays, but SEM bidding promotion personnel are still at work (working from home). Some time ago, a friend asked in the group that the current account cost is a bit high, but the conversion effect is very poor. The boss has pointed it out, but he doesn’t know where the problem lies. So, if the cost of Baidu’s bidding promotion is too high and the effect is declining, where should we look for the problem? Let’s learn more about it with Feng Chao from Dongguan Network Promotion !

The cost of Baidu's bidding promotion is too high and the effect is declining. Where should we look for the problem?

Think about it: suppose a plan in the account is working well. When we want to make it work better, that is, to increase more traffic to get conversions, which action would you prioritize?

For example, the picture below. Judging from the following data alone, this plan is working quite well. If you want to optimize, the first thing is to increase traffic, that is, increase clicks. Then we need to increase the display.

So, dear readers, which operation would you perform first?

I guess most bidders will choose to "raise prices"! By raising prices, they can gain rankings and increase exposure, thereby achieving the goal of incremental growth.

I have to say that, in a sense, price increases are very effective. But whether it is the right choice needs further verification.

From the figure, we can see that the average price is 2.5 yuan. Now we raise it to 3 yuan, then the clicks will also change accordingly.

The figure below shows the data after the price increase.

Dear readers, do you think there is a problem with the above operation?

In fact, logically speaking, gaining traffic by "raising prices" is a key step in "making good things better" and is also a correct optimization operation.

However, we have overlooked a very important indicator, that is, "conversion cost"!

For example, the picture below. First, let’s look at the results after optimization. Traffic and conversion have indeed increased, but the conversion cost is higher than before optimization!

Although conversion rate has increased, the conversion cost has also increased accordingly. We often boast about the high promotion results, but in fact, these are all caused by us.

Therefore, when we raise prices, we must understand the relationship between average price, budget, and clicks; and understand what we really need to control in order to expand the volume.

Sometimes, when we want to raise the price, we might as well use adding words, optimizing creativity, or adding matches instead of raising the price first.

Raising prices is effective in optimizing accounts, but it is not a panacea.

Remember, in bidding promotion, what we pursue is: buying high-quality traffic at a low price, rather than buying traffic at a high price.