I lowered bids and my ACOS went UP. What happened?

Q: I lowered bids and my ACOS went UP. What happened?

For the same reporting scope, ACOS = realized CPC ÷ revenue per click . If CPC falls but ACOS rises, revenue per click fell by a larger proportion. That can reflect conversion rate, order value or both. Compare mature windows before diagnosing the cause. Inspect placement and search-term mix, stock availability, price and promotions. Losing a productive placement or search term is one possible explanation, but top of search is not always the best-performing placement for every account. Choose the response from the evidence. It may involve a placement review, isolating a productive term, repairing the listing or waiting for attribution to mature. Automatically raising a placement modifier can compound the problem. See budgets and placements .

Question

Accepted Answer

For the same reporting scope, ACOS = realized CPC ÷ revenue per click. If CPC falls but ACOS rises, revenue per click fell by a larger proportion. That can reflect conversion rate, order value or both.

Compare mature windows before diagnosing the cause. Inspect placement and search-term mix, stock availability, price and promotions. Losing a productive placement or search term is one possible explanation, but top of search is not always the best-performing placement for every account.

Choose the response from the evidence. It may involve a placement review, isolating a productive term, repairing the listing or waiting for attribution to mature. Automatically raising a placement modifier can compound the problem. See budgets and placements.