In the work of bidding promotion , you will often see various bidding coefficients.

These coefficients are easy to understand when viewed individually. It’s nothing more than adding a little more money to the dimensions that you value more.

Perhaps in order to encourage everyone to use these coefficients more often, their names are relatively easy to understand and there are no obstacles to understanding them.

It is easy to understand a single dimension, but when they are combined together, it often becomes very confusing and difficult to figure out.

Various coefficients are put together, some are triggered and some are not, and it is impossible to figure out what coefficient is used to calculate the final click billing.

In order to understand the issue of bid coefficients, let’s first briefly sort out the common bid coefficients currently available. This article takes Baidu search promotion system as an example, and other bidding backends are similar.

Currently, the bidding coefficients of Baidu search promotion background include time period coefficient, regional coefficient, device coefficient, bidding strategy coefficient, flash creative style coefficient, crowd coefficient, consulting component coefficient , etc.

The meaning of the above coefficients can be understood literally, so I will not elaborate on them here. I just want to find some general rules based on these.

During the advertising process, the actual bid = bid * the product of various coefficients.

When multiplying coefficients, there are several key numbers that are sensitive, and the first sensitive number is 0 .

In any multiplication involving 0, no matter whether the other results are large or small, the final result is 0. So from this perspective we know that the coefficient range with 0 has the function of a switch .

Among the above coefficients, the value range includes three categories: time period coefficient, regional coefficient, and equipment coefficient .

Of course, some of the actual filling may not allow for 0, but these are allowed not to be put in, which is also a manifestation of the coefficient being 0.

For these three switches, I personally think that the priority is that the device coefficient is greater than the time period coefficient, and the time period coefficient is greater than the regional coefficient.

If the device coefficient is not turned on, there is no way to adjust the bid during the time period. If the time period coefficient is not turned on, there is no way to distribute the product by region.

But in normal operations, we use the time period coefficient as the switching function of the release. The equipment and regions are usually normally open or normally closed and are not adjusted frequently.

After all, even if there is a separation of powers, it is more efficient to follow the command of one person.

The second sensitive number about the bid modifier is 1 .

The special thing about 1 is that in multiplication, when a number is multiplied by a number larger than 1, the result will be larger than this number. If a number is multiplied by a number less than 1, the result will be less than 1.

Therefore, among the bid coefficients, only bid coefficients above 1 and coefficients below 1 can be divided into two categories.

The first category is temporarily called the premium coefficient , and the second category is temporarily called the adjustment coefficient .

Among the above coefficients, the premium coefficients include the crowd coefficient, flash creative style, consulting component, and the ranking priority strategy part of the bidding strategy.

In these dimensions, we can only increase bids, which is a value-added service. If you're not willing to raise your bid, you won't be able to use these features.

As for the adjustment coefficient part, in addition to the time period coefficient, regional coefficient, and device coefficient that can be used as switch functions, there is also a click maximization strategy in the bidding strategy.

These coefficients can be adjusted downward according to actual conditions.

After understanding these basic things, many doubts in my mind are still not resolved, so I have to continue asking questions.

What's the point of messing around with these coefficients?

There are even three switches. Why not just set up one switch and bid whatever you want? Isn’t that good?

There is only one reason, maybe such a design is necessary.

It is easy to cook a dish that suits someone's taste, but it is difficult to cook a dish that satisfies everyone's taste at the same time. The only solution is to serve a bowl of noodles without any seasoning, with all the condiments, and let everyone season it themselves.

From this perspective, the rich coefficient design is to meet the personalized needs of various industries.

So what exactly does this need that is being met refer to?

Although it is impossible to interview each industry about their specific needs, it is easy to guess that the goal is to achieve better delivery results .

In other words, in order to achieve good advertising results, each industry requires different settings, but all industries generally revolve around these coefficients.

Just put all these coefficients on the system at once, this is the meaning of their existence.

If the coefficient exists to achieve better delivery effects, then what is the specific logic?

When thinking about this problem, take a different approach and think about what needs to be done if you want to achieve better delivery results?

Everyone knows the answer: all we need to do is achieve a higher input-output ratio .

Since today we are only discussing issues related to coefficients, the input-output ratio involves more issues. In order not to complicate the issue further, we will first remove factors such as average customer spending.

To achieve better delivery results, we need to close more orders within the unit budget .

There are two ways to close more orders within a unit budget. One is to obtain more clicks within the unit budget , and the other is to increase the conversion rate within the unit budget .

Let’s talk about the first idea first.

If you want to get more clicks per unit budget, simply lowering the bid will not work. If it could be lowered, it would have been lowered long ago. If the bid is too low, there will be no impressions, and in the end you won’t be able to spend your money.

There is also a roundabout way to improve the quality by increasing the click-through rate, and then reducing the cost per click.

Or after improving the click-through rate, even if you offer a lower price, the budget can be spent with fewer impressions, so there is no problem of not being able to spend money after lowering the price.

Regarding the coefficient for increasing click-through rate, there are advanced creative flashes that use fancy ideas to attract everyone's attention and achieve a higher click-through rate.

Bidding strategies can also achieve this goal to a certain extent. Better rankings naturally come with higher click-through rates.

As for the consultation component, it can also achieve certain effects. After all, our consultation button is obvious and it is more convenient to click.

Many of these coefficients are premium coefficients, all of which are above 1, which means that a higher price will be offered. Whether you can turn it around in the end will still require a certain amount of skill.

Let’s focus on the second idea, which is to achieve the goal of improving conversion rate through various coefficients.

Let’s define it first. The conversion rate here refers to the process from click to transaction.

Assuming that under normal circumstances, when the bid coefficient is 1, the conversion rate is one thousandth. If the bid coefficient becomes 5 and the conversion rate becomes 1%, then it is cost-effective and the five-fold premium is worth it.

Based on this logic, we can also find that the maximum value of the bid coefficient cannot exceed the inverse of the conversion rate .

In the above example, if the bid coefficient reaches 1001, even if the conversion rate reaches 100%, it is better to just run the campaign with a bid coefficient of 1.

Therefore, some bosses say that as long as the quality of the customers is high, they are willing to spend any amount of money. This is also nonsense.

If it costs 1 yuan per click and 1,000 clicks are required to complete a deal, or it costs 1,001 yuan per click and every click completes a deal, which option will the boss choose?

Going back to the previous point, if it can improve the conversion rate, we are willing to pay a certain premium, there is no doubt about that.

There are many factors that can improve conversion rate, such as choosing a premium for a city close to your company, choosing a premium for prime time periods for conversion, and choosing a premium for the devices that consumers are accustomed to using based on their habits .

These dimensions can improve the conversion rate to a certain extent, but the impact is very limited, so there will not be a significant premium.

The best dimension is to focus on the crowd . By targeting precise customer groups, the conversion rate will be greatly improved.

It is not easy to truly accurately target customers. For example, our customer base is all women, but that does not mean that all women are our customer base.

Due to lack of confidence in customer positioning and reach, we are unable to make full use of the crowd premium.

The platform naturally does not want to miss this opportunity, so various automatic bidding systems have emerged. In essence, they are still based on premium pricing based on the population, thereby increasing conversion rates.

Whether it is manual adjustment or automatic bidding, whether it is Baidu or other platforms, the bidding coefficient should pay attention to the premium range and the conversion rate improvement range.