Question

A chain of regional bookstores is looking to drive more value from their ads campaigns by creating a value-based bidding strategy for the first time. Which best practice should they follow first in order to get started?

a) Build a large list of negative keywords to tailor traffic and eliminate uninterested consumers.
b) Enable a volume-based smart bidding strategy in all campaigns.
c) Begin with a strong measurement and attribution strategy based on their goals.
d) Create a value-based smart bidding strategy in their top two campaigns.

Answer 1

First, a bookstore chain should establish a strong measurement and attribution strategy (option c) as a basis for effective value-based bidding. This foundational step is critical for understanding ad impacts and making data-driven decisions on ad spend allocation for maximum ROI.

Step-by-step explanation:

To begin creating a value-based bidding strategy for a chain of regional bookstores, the best practice to follow first is c) Begin with a strong measurement and attribution strategy based on their goals. Before venturing into value-based bidding, it is crucial to have a clear understanding of how different advertising strategies contribute to sales and conversions. This approach allows the company to measure the impact of its ads accurately and attribute value to different advertising efforts. After establishing a solid foundation of measurement and attribution, the company can make informed decisions on how to allocate ad spend for maximum return on investment (ROI).

It's not advisable to start with negative keywords or smart bidding strategies without first knowing what works and what doesn't through proper measurement. Similarly, creating a value-based smart bidding strategy in top campaigns without initial data on effectiveness can lead to misallocation of resources.