A key mistake that businesses make when running AdWords campaigns is that they don’t consider the different contexts in which users click on their adverts, and therefore bid a flat rate for all of their clicks regardless of a number of variables which could make your bids cheaper and more expensive.

Here’s our guide to different types of bid adjustments, and how they can help your AdWords campaign produce a better ROI:

Bid Adjustment Fomula - What are bid adjustments, and how can they help my AdWords campaign?


It is important to consider the likelihood of conversion in certain areas, and where conversions are more likely, it is reasonable to bid a little more to ensure that it is your ad that the better quality traffic is going to click on. If your business sells coffee machines online, it makes sense to bid higher rates in affluent areas, where people have more disposable income and are therefore more likely to buy from you. Ensure that you are thinking about where your highest quality leads are geographically when making your bid adjustments.


We live in a technological world in which people can browse the internet on a number of different devices, and this should be represented in your bid adjustments. If you’re an emergency locksmith, when people are locked out of their car or house, the first thing they will do is search for a locksmith on their phone. Spend some time thinking about how people search for your business.


Buying trends show that people buy certain things at certain times, so adjusting your bids based on the time of day, day of the week and time of year should be considered in the price you are bidding. Look at Google Analytics to see when you make most of your conversions, and adjust your bids based on that data. If your business sells gazebos, it makes sense to increase your bid in the summer months, where demand is going to be higher.

Bid adjustments can be incredibly effective in increasing ROI. Map out your customer buying process and then make sure your bid adjustments represent that process.