Because multi-keyword campaigns contain a wide range of bid values, we then normalize them to rebalance the bids around a common average — ensuring consistent keyword-level bidding and allowing campaign-level placement modifiers to function properly in alignment with your overall ACOS target.
These normalized bids become your new optimized base bids in your multi keyword campaign.
Formula:
Normalized Bid = (Base Bid ÷ Max Base Bid) × Avg Calc Base Bid
Max Base Bid = the highest bid from Step 2
Avg Calc Base Bid = average of all Step 2 base bids
🧠 What Does "Normalize" Mean Here?
Normalization keeps your bid structure stable and proportional:
> Converts raw base bids into a 0–1 scale
> Rescales them to align with a consistent average
> This maintains the hierarchy of high vs. low performers while smoothing out outliers
Why it matters:
> High-performing keywords still get higher bids
> Outliers don’t distort the system
> Bid levels stay consistent across updates — even when sales shift