# Targeting bidding parameters
### Bidding update options
The update bid selector offers various options for adjusting bid amounts for targeting records. Each option provides different ways to adjust bids, either by a fixed amount, a percentage, or setting it to a predefined default.
{% tabs %}
{% tab title="Increase by ($)" %}
Increase the bid by a specific currency amount.
{% endtab %}
{% tab title="Increase by (%)" %}
Increase the bid by a percentage of the current value.
{% endtab %}
{% tab title="Set to" %}
Directly set the bid to a specified amount.
{% endtab %}
{% tab title="Set to ad group default bid" %}
Adjust the bid to match the default bid set for the parent ad group.
{% endtab %}
{% tab title="Decrease by ($)" %}
Decrease the bid by a specific currency amount.
{% endtab %}
{% tab title="Decrease by (%)" %}
Decrease the bid by a percentage of the current value.
{% endtab %}
{% endtabs %}
{% hint style="info" %}
Changes are executed using the account default currency.
{% endhint %}
### Bidding references
The increase and decrease bidding options provide a flexible range of reference points, enhancing the optimization process of individual targeting. This feature is designed to offer varied benchmarks for adjusting bids, catering to different strategic needs and allowing for a more tailored and effective bidding management experience.
{% tabs %}
{% tab title="Bid" %}
This standard reference utilizes the current bid set for each targeting as the starting point for adjustments. It is most effective when you wish to retain complete control over the bidding process.
Example of bid-based bid operation:
```
Current bid: $0.50
CPC for selected period = $0.48
Desired operation = Increase by $1.
Resulting applied bid = $1.48
```
In this scenario, the bid is used as the reference point for the bid increase. The operation adds $1 to the bid of $0.50, resulting in a new bid of $1.50.
{% endtab %}
{% tab title="CPC" %}
This option takes the average cost per click (CPC) recorded for the specified period as reference. It's especially useful for aligning bid adjustments with actual performance costs.
Example of CPC-based bid operation:
```
Current bid: $0.50
CPC for selected period = $0.48
Desired operation = Increase by $1.
Resulting applied bid = $1.48
```
In this scenario, the CPC from the selected period is used as the reference point for the bid increase. Instead of adding $1 to the current bid of $0.50, the operation adds $1 to the CPC of $0.48, resulting in a new bid of $1.48.
{% endtab %}
{% tab title="Highest" %}
This option calculates whether the current bid or CPC is higher for each targeting during the specified period. It then uses the highest of these two values as the reference for adjustments. This method can be beneficial when aiming to capitalize on the best-performing aspects of a campaign.
Example of highest-based bid operation:
```
Current bid: $0.50
CPC for selected period = $0.48
Desired operation = Increase by $1.
Resulting applied bid = $1.50
```
In this scenario, the current bid is used as the reference point for the bid increase, as it is the highest value. The operation adds $1 to the bid of $0.50, resulting in a new bid of $1.50.
{% endtab %}
{% tab title="Lowest" %}
This option calculates whether the current bid or CPC is lower for each targeting during the specified period. It then uses the lowest of these two values as the reference for adjustments. This option might be preferred in conservative bidding strategies or cost-cutting measures.
Example of lowest-based bid operation:
```
Current Bid: $0.50
CPC for selected period = $0.48
Desired operation = Increase by $1.
Resulting applied bid = $1.50
```
In this scenario, the CPC from the selected period is used as the reference point for the bid increase, as it is the lowest value. The operation adds $1 to the CPC of $0.48, resulting in a new bid of $1.48.
{% endtab %}
{% endtabs %}
### Bidding boundaries
Bidding boundaries are predefined limits set on advertising bid amounts to control and optimize spending. They include maximum and minimum thresholds for bid adjustments, ensuring that bid increases or decreases stay within a specified range. These boundaries are critical for maintaining a budget and strategy, preventing excessive spending or overly conservative bidding. They provide a controlled environment for bid management, especially in automated or bulk bid adjustment scenarios.
Bidding boundaries are dynamic, triggered by the specific bidding update scenario. These flexible and context-specific boundaries allow for more precise and strategic bid adjustments within the framework of an advertiser's overall budget and campaign goals.
{% tabs %}
{% tab title="Use maximum boundary" %}
Enabling this option sets a cap on bids to ensure that any increase in bidding does not exceed a certain value, providing a ceiling for bid amounts.
To assign a maximum boundary, select the "Use maximum boundary" checkbox and enter the maximum value you wish to assign.
**Examples:**
In an account with a minimum bid of $0.10 and a maximum bid of $2.40:
* Increasing a record with a bid of $0.50 by $2, with a maximum boundary of $4, would result in a $2.40 bid due to the account's max. bid limit.
* Increasing a record with a bid of $0.50 by $2, with a maximum boundary of $1.50, would result in a $1.50 bid.
{% endtab %}
{% tab title="Use minimum boundary" %}
Enabling this option sets a floor for bids, ensuring that any decrease in bidding does not fall below a specified value.
To assign a minimum boundary, select the "Use minimum boundary" checkbox and enter the minimum value you wish to assign.
#### Examples:
In an account with a minimum bid of $0.10 and a maximum bid of $2.40:
* Decreasing a record with a bid of $0.50 by $2, with a minimum boundary of $0.05, would result in a $0.10 bid due to the account's min. bid limit.
* Decreasing a record with a bid of $0.50 by $2, with a minimum boundary of $0.15, would result in a $0.15 bid.
{% endtab %}
{% endtabs %}
{% hint style="danger" %}
Bidding boundaries are overridden by account-level boundaries, specifically the minimum and maximum bid settings at the account level.
{% endhint %}
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