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Device and geographic bid adjustments can multiply a base bid when a platform treats them as separate eligible criteria—but they do not simply add up, and the two platforms have different overlap and automated-bidding rules. “Over time” means that persistent campaign settings shape bids in each eligible auction; the percentages do not progressively accumulate from day to day.
What it means for bid adjustments to compound
A bid adjustment changes a base bid by applying a multiplier. A +20% adjustment means multiplying by 1.20; a -50% adjustment means multiplying by 0.50. If a person matches more than one eligible criterion, distinct adjustment types may be applied in sequence. The result depends on the advertising platform, campaign and bid strategy, and any precedence rules.
Compounding describes how the platform calculates a bid for an eligible auction. It does not mean a modifier grows with time, nor does the calculation establish that a higher bid will improve conversions, cost per acquisition, or return on ad spend.
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How Google Ads combines eligible adjustments
Google Ads Help says that adjustments in a campaign are “typically multiplied together” to determine how much a bid changes. Its worked example starts with a $1.00 maximum CPC, applies a +20% California location adjustment, then a -50% Saturday schedule adjustment. The calculation is $1.00 × 1.20 × 0.50 = $0.60. These are Google’s illustrative figures, not measured performance results. See Google Ads Help: About bid adjustments.
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For distinct eligible location and schedule adjustments, the calculation can be represented as:
effective bid = base bid × (1 + location adjustment) × (1 + schedule adjustment)
For example, a $1.00 base bid, +20% location modifier, and -50% schedule modifier yield $0.60. The result remains subject to Google’s limits and precedence rules.
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Do not multiply nested location settings as though each were a separate criterion. If France has a +50% adjustment and Paris has +100%, Google says the Paris adjustment applies to traffic from Paris; the country and city modifiers are not both used for that same location.
Device settings can have a hierarchy
When campaign- and ad-group-level adjustments exist for the same device, Google’s documented rule is that the ad-group adjustment takes precedence. The exception is a campaign-level -100% device adjustment, which prevents the ad-group adjustment from applying.
Google’s documented adjustment limits
Google documents device adjustments from -100% to +900% and location adjustments from -90% to +900%. Combined adjustments are capped at a +900% increase, with a minimum combined adjustment of -90%. These are Google Ads platform limits, not universal rules for other ad systems; check the current help page and the settings available for your campaign type.
How Microsoft Advertising combines adjustments
Microsoft Learn describes the base bid as being adjusted by multipliers for each applicable criterion type. In its example, a $1.00 bid receives a +20% Saturday adjustment and a +30% Seattle location adjustment: $1.00 × 1.20 × 1.30 = $1.56. Microsoft says calculated bids are rounded to two decimal places. The $1.56 figure is a platform-published example, not a performance guarantee. See Microsoft Learn: Show Ads to Your Target Audience.
Location specificity still matters
Microsoft does not combine overlapping geographic criteria such as country, state, metro, and city settings. The most refined geographic criterion applies. That is separate from combining a location criterion with a different eligible type, such as a schedule adjustment.
Location intent affects who is eligible
Microsoft’s location-intent setting affects which users qualify for location targeting, not the multiplier calculation itself. The default intent can include people who are in, searching for, or viewing pages about a location. The PeopleIn option restricts targeting to people physically in the selected location. Confirm the intent setting as well as the bid adjustment when diagnosing who may see an ad.
Google Ads and Microsoft Advertising compared
| Question | Google Ads | Microsoft Advertising |
|---|---|---|
| Do distinct eligible criteria multiply? | Typically. Google’s published example multiplies location and schedule adjustments. | Yes. Microsoft’s example multiplies schedule and location criteria. |
| What happens with overlapping locations? | The most specific location adjustment applies; nested locations are not all multiplied. | The most refined geographic criterion applies; country, state, metro, and city settings are not all combined. |
| How do same-device campaign and ad-group settings interact? | The ad-group setting controls, except a campaign-level -100% device adjustment blocks it. | Not stated in the cited Microsoft Learn guidance. |
| What does the documentation say about automated bidding? | Manual adjustments generally do not apply to conversion-oriented Smart Bidding strategies; Google documents device exceptions, including -100% exclusions, and says Target CPA device changes act on the target. | The API guidance says device adjustments are considered with automated bidding for auction-level decisions. |
| What adjustment ranges or rounding rules are specified? | Device: -100% to +900%; location: -90% to +900%; combined adjustment: maximum +900% and minimum -90%. | The cited guidance provides a two-decimal rounding rule for its calculated-bid example; it does not establish matching adjustment ranges. |
What changes under automated bidding
Google Smart Bidding
Google says Smart Bidding strategies such as Target CPA, Target ROAS, Maximize conversions, and Maximize conversion value set bids toward the selected goal, so manual bid adjustments generally are not supported. Google’s documented device exceptions include -100% exclusions; for Target CPA, a device adjustment changes the target rather than directly applying the ordinary manual bid multiplier. An ad schedule can still restrict when ads are eligible to serve even when a manual schedule bid modifier is not used. Check the strategy-specific table on Google Ads Help before interpreting a setting.
Microsoft automated bidding
Microsoft’s API guidance says device adjustments are considered alongside automated bidding at auction time. That platform statement should not be replaced with Google’s Smart Bidding rules: the two systems describe the relationship between device modifiers and automated bidding differently. Consult Microsoft’s targeting guidance for the applicable criteria and implementation details.
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In Google Ads, review location performance in the Locations table and use “When and where ads showed” to inspect where and when ads appeared. Confirm the campaign’s bid strategy and the level where a device setting is configured before changing a modifier. Google also documents API operations for campaign-level device, location, and schedule modifiers, plus ad-group-level device modifiers, in Google Ads API: Manage bid modifiers.
In Microsoft Advertising, check the relevant targeting criteria and location intent alongside the adjustment. API users can refer to Microsoft’s target-audience guide for the documented criteria and bidding behavior.
Quick Recap
Before increasing a device or location modifier
- Confirm the platform, campaign type, and bid strategy; the same manual adjustment may not affect bidding the same way across strategies or platforms.
- Check whether the user qualifies for multiple distinct criteria, or whether overlapping locations resolve to a single, more specific target.
- Check the setting’s level and any exclusion that takes precedence, especially Google’s campaign-level -100% device adjustment.
- Compare performance for the relevant device or geography and weigh it against business value before changing the bid. The documented arithmetic explains bid mechanics, not which adjustment is optimal.
- Verify current settings in the platform before applying changes to a live campaign, since feature eligibility and controls can vary.
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