Bid adjustment is a core component of Pay Per Click (PPC) advertising, where advertisers pay a fee each time their ad is clicked. It directly influences the Click-Through Rate (CTR) and Cost Per Click (CPC) by determining how competitive an ad is in the Ad Auction, which is the process that decides which ads are shown and in what order. The Ad Rank, which combines bid amount, Quality Score, and other factors, is also impacted by bid adjustments.

Impression Share, or the percentage of impressions an ad receives compared to the total available, can be affected by how well bid adjustments are managed. A well-executed bid strategy, including setting a Maximum Bid and possibly a Bid Cap, ensures that the advertiser does not overspend while still achieving desired visibility. Enhanced CPC and Dayparting are advanced techniques where bid adjustments play a crucial role. Enhanced CPC automatically adjusts bids to maximize conversions, whereas Dayparting allows advertisers to change bids based on the time of day or week.

Cost Per Acquisition (CPA) is another critical metric influenced by bid adjustments. By strategically increasing or decreasing bids, advertisers can control their advertising costs and improve the efficiency of their campaigns. Ad Schedule, which dictates when ads are shown, works hand-in-hand with bid adjustments to ensure that ads are displayed at times when they are most likely to perform well. This holistic approach helps in achieving a balanced and effective advertising strategy.