Select an Account to Sign In


Text & Email, Appointment Scheduling, Customer Database

MyDex Account

Pay Bills, View Reporting, Manage Your Listings

Share: Share to Facebook Share to Twitter Share to LinkedIn

Can You Get More Calls With a Flexible Bid Strategy?

By | 06.10.14
Can You Get More Calls With a Flexible Bid Strategy?

There are a lot of ways to manage bids for your SEM campaigns. If you’re handling your optimizations  by hand and need an assist, you might find the solution in a flexible bid strategy. Google introduced this feature early last year, then expanded it to include a strategy called Target ROAS (Return on Ad Spend) in October. If you run click-to-call advertising, things are about to get a lot more interesting.


Many SEM programs are managed to a target ROI, which is a percentage calculated as profit divided by cost. ROAS only differs slightly, as it is calculated as revenue divided by ad spend. If you spend $7 on advertising and generate $14 in revenue, your ROAS will be 200%. Assuming no expenses beyond ad spend, the ROI for that same advertising would be 100%. This is important to remember when setting up your targets.

Click-To-Call Ads

An incoming phone call to a business can mean a lot of things, and these new features should assist local businesses with assigning value to those calls. Consider this ad for a local bank:

Google Click-To-Call Ad for Bank

What does a click on the Call button mean for this advertiser? It could be an existing customer calling for bank hours, or it could be a new customer looking to get a loan. The ROAS for those two kinds of calls are very different, but until now it was difficult to automate the process of identifying them.

Click-to-Call Tracking

When you set up a new call extension, you’ll be presented with the following form:

Google New Call Extension Dialogue

The wealth of options available here are a bit daunting, but the important points are the Google forwarding phone number and the “Report phone call conversions” settings. By using a Google forwarding number, you enable the tracking of conversions and more advanced options for flexible bid adjustments.

For example, you could set up a campaign with a call tracking number that only appears during business hours, and another for after-hours calls. This would enable automatic optimization by placing a higher value on daytime call conversions. This could be taken a step further and you could add conversions based on call length. A ten minute call to a bank would almost certainly carry a higher potential value than one that lasted under a minute.

Flexible Bid Strategies

To bring automated optimization to your account, you’ll want to enable a flexible bid strategy. First you’ll click the Shared Library link and add a new “Target Return on ad spend” strategy.


Google Bid Strategies - ROAS


Once you’ve created the strategy, you’ll need to apply it to your campaign. This can be done via the Campaign Settings tab.

Google Campaign Settings - Dynamic Bids

As always, you should monitor your reporting to determine whether or not these new settings provide better results for your campaigns. You may need to change your Target ROAS over time to get the balance just right.


Like what you see?
get more free content.

Next Up In SEM & PPC

The Differences between AdWords Match Types: The Tough SEM Decisions

If search engine marketing (SEM) were a game of schoolyard kickball, Google AdWords would get picked first every time....

Read More

7 Deadly Sins of Search Engine Marketing (SEM): Refine Your Strategy

There’s a lot of advice out there about what good search engine marketing (SEM) looks like. But even if...

Read More

The Latest Developments in Pay-Per-Click (PPC) Advertising

Earning prime visibility on the web and ranking well online are goals for most local business owners. So if...

Read More

Explore the Blog