What is Parental Status Bid Adjustment?
This article aims to explain about bid adjustment by parental status and how Pareto Ads can automatically do this for you.
Is your product or service aimed at people with children or without children? Can we target this on Google Ads, too? The answer is yes! In addition to various segments such as age, income, gender, we can also segment by parental status, too!
This adjustment changes the bids for audiences of different groups of people, such as:
Not a parent
"Unknown" are the people Google was unable to pinpoint which group they belong to.
According to your campaign data, we can raise or lower bids for each of these groups, and further increase ROAS, or lower CPA. To further enhance your account optimization, we can combine several different bid adjustments in the same campaign, such as: parental status, gender and age. If you want to know a little more about the other two adjustments, we have more articles on the blog explaining each one!
Let's see a practical example of how to apply this bid adjustment to your campaigns: let's imagine we have an e-commerce for baby and kids products. Analyzing the group that converts the most, we find they're “parents”, so we can give a positive bid for that group, and increase the impressions of our ads only for that audience. In that same analysis, we found that the "not a parent" group does not convert and has a high volume of clicks and consequently high cost, so for them we can make a negative bid to reduce the amount of CPC that we will pay, and avoid wasting money.
It is worth mentioning that currently, this type of adjustment can be made in the Display, Discovery, and Video campaigns, excluding Shopping and Search.
How Pareto Ads can help you
Whenever we modify bids of any type of targeting in our campaigns, we need to do statistical tests to be sure we are doing it right. And this is where Pareto Ads comes in. It performs a thorough analysis of the data present in each of the campaigns and offers suggestions for adjustments for each group, in order to optimize the campaigns and further increase the revenue and/or amount of qualified leads.
When Pareto Ads finds an audience with high spend and low conversions, it can suggest applying a reduction percentage, or even suggest removing the audience from the ad groups. In the latter case, the ads will stop running for the removed group. On the other hand, if the algorithm finds an audience that converts a lot, it can positively adjust the bids, to ensure the ads will be served. For example, if your bid for a particular keyword is $ 2.00, applying a 40% increase for "not a parent" audiences in a given ad group. In this case, your bid would be $ 2.80 for this group.
Adjusting the bids for parental status is done at the ad group level, and it is important to analyze each one separately, as the data can differ greatly between ad groups.
And how do I find the ideal bid for my ad groups?
On Pareto Ads Marketing Board, check if an automatic card about bid adjustments for parental status is in the “Inbox” column.
If you have one, just drag it to the “Done” column or press “Execute” and the adjustment will be done automatically! If you don't have one, stay calm, as our algorithms are still collecting data from your account and will only create the card when you are sure it will be an excellent opportunity for you.