Contoso Toys has decided to create a “catch-all” campaign with an all-products product group in it. As a best practice, how should they bid in this scenario?
Select one option.
- Increase their bids
- Have lower bids and a low campaign priority setting
- Never bid on ‘all products’
- Make their all products ‘catch-all’ bid double their item ID bids
Explanation: When Contoso Toys decides to create a ‘catch-all’ campaign with an all-products product group, it is best practice to have lower bids and a low campaign priority setting. This approach is optimal because a ‘catch-all’ campaign serves as a safety net to ensure all products are covered in the advertising strategy, even those not included in more targeted campaigns. By setting lower bids for the ‘catch-all’ campaign, Contoso Toys can prioritize more specific and finely-tuned campaigns, which typically offer higher precision and potentially better performance in terms of click-through rates (CTR) and conversions. These targeted campaigns should have higher bids to ensure they are given precedence in the auction system, thereby capturing traffic for products where Contoso Toys has better data on performance and profitability. Additionally, assigning a low campaign priority to the ‘catch-all’ campaign ensures that it only captures impressions and clicks when the more specialized campaigns are not applicable. This layered bidding and priority strategy helps in managing the budget more efficiently by allocating higher spending to more profitable product segments while still maintaining comprehensive coverage with the ‘catch-all’ campaign. This method avoids overbidding on the broad all-products group, which could lead to inefficient spending and lower overall return on investment (ROI). Therefore, by maintaining lower bids and a low campaign priority for the ‘catch-all’ campaign, Contoso Toys can effectively balance broad coverage with strategic targeting, optimizing their overall advertising performance on Microsoft Shopping Campaigns.