This infographic breaks down portfolio bidding as a PPC optimization strategy. Portfolio bidding is the modern approach to SEM optimization. It groups shared data across keywords, ad groups and campaigns to make decisions benefiting the whole portfolio.
Google Ads documentation provides a high-level view of portfolio bidding, but may not answer the questions you have about the value of this bidding methodology.
Why use this strategy?
When it comes to keywords, the relationship between spend and return is non-linear. Portfolio methodology models this relationship granularly at the keyword level, but adjusts for findings collectively across the portfolio. It optimizes performance by focusing on the entire portfolio’s goals, instead of each unit within the portfolio.
How does this strategy work?
Portfolio methodology involves bidding on a group of keywords towards a target goal, while maintaining an efficiency metric.
The goals of the group outweigh any specific keyword-level goal. Some keywords will perform worse to maintain the efficiency of the group, while other keywords are bid up to drive the target goal. The methodology optimizes the group based on the context of the entire portfolio.
Take your paid search campaigns to the next level with this optimization strategy. Learn more in our other blog posts on portfolio vs keyword bidding, or in our new eBook: SEM Optimization Techniques: Are You Overpaying Google?