You can use bid adjustments, also known as incremental bids, to increase or decrease your bid for certain target customers. Bid adjustments can be made for demographics such as gender, age, and location. You can also target customers who are searching on certain days and/or time of day.
Bid adjustments help you increase your chances of showing your ads to the customers who are most important to you. Targeting these customers can lead to a higher conversion rate and a better overall ROI for your ad campaign.
Let's say you want to improve the odds of showing your ads to customers who are 25-34 years old. Your bid on the keyword "shoes" is $1.00. You add a 20% bid adjustment for the age group 25-34. Now, when a search user of the targeted age searches for "shoes", your bid is $1.20 and you're more likely to have a winning bid that gets your ads displayed.
If you add bid adjustments for multiple criteria, such as both gender and age, you pay for each of the bid adjustments that match a searcher who clicks on your ad. Using multiple criteria can be useful for displaying ads to your most desired customers. However, it's important to understand that multiple criteria can also increase your CPC for those ads.