Successful Keyword Bid Optimization Takes Teamwork
Global vs. local optimization: In paid search, the differences between global and local optimization are critical to understand because the path you choose will directly affect how much you can improve your campaigns.
Local optimization forces every keyword or cluster to perform the same, bidding so every one of them achieves the stated goal. For example, if the goal is to maximize revenue with a ROAS of 200 percent, each keyword or cluster is bid to achieve that goal.
In local optimization, success is only achieved if every keyword or cluster meets the global goal.
Global optimization wants the keywords or clusters to act as a team, considering all of them at once and assigning individual bids so the “portfolio” achieves the stated goal as a group. For example, it may turn out that one keyword can drive a ton of revenue at a ROAS of 180 percent and another at a ROAS of 220 percent.
Global optimization isn’t concerned if any one keyword or cluster achieves the goal. As long as the average ROAS is 200 percent, the global solution will declare success.