Trends & insights
What metrics should you compare to evaluate the success of a bidding test?
Summary
Evaluate success by comparing cost-per-acquisition, conversion rate, and total conversion volume against your baseline.
To evaluate the success of a bidding test, you should compare your cost-per-acquisition and conversion rate against your historical baseline. Many small business owners make the mistake of focusing solely on average cost-per-click, which often rises during automated bidding. However, a higher cost-per-click is acceptable if the algorithm successfully targets users who are much more likely to convert. You should also evaluate the total volume of conversions generated within the thirty-day testing period to ensure volume has not dropped. Comparing the return on ad spend is another critical metric if you are running an e-commerce campaign with varying transaction values. Make sure to compare equal timeframes, such as the thirty days during the test against the thirty days immediately preceding it. This ensures that seasonal trends or external market changes do not distort your analysis. By focusing on overall conversion efficiency rather than individual click costs, you can make an objective decision about your bidding strategy.