What is Smart Bidding in Google Ads?
Smart Bidding in Google Ads
Smart bidding is designed to help make advertising easier and more efficient for marketers and businesses. It’s a resource that automates some processes and uses machine learning to optimize ads for better conversion or for a higher conversion value every time the bid-process occurs. This allows businesses to take a more hand-off approach with their search ads will still being able to prioritize certain goals for their business like more product sales or increased revenue.
Smart bidding gives you a range of signals to adjust and customize in order to set up your ads for your business’s ideal goals and KPIs. If you are interested in being able to automate some ad campaigns while making sure you reach your goals, then Google Ads Smart Bidding gives some options.
Tips to Improve Your Results With Google Ads Smart Bidding
Use the Bids at the Time of the Auction
With bidding at auction time, Google Ads uses the best available data to set the most appropriate bid at the time of the auction.
To adjust automatic bids, Smart Bidding makes decisions for each particular auction and takes into account more factors than are available with standard bid adjustments, such as:
- The user’s specific query (manual bids can only be configured at the keyword level)
- The number of words in the search
- The type of keyword match
- The user’s device and operating digital system
- The browser
- The language
- The time of day the query performed
- The remarketing list the user is on
- The ad creative
Set up Conversion Tracking
Conversion tracking is necessary in order to use conversion-based bidding strategies.
To track conversions, the first step is to decide which metric you need to monitor based on your goals. Google Ads offers multiple options: set up conversion tracking on a website, track iOS and Android app conversions, track phone calls from an ad or website, and so on. You can find more information about conversion tracking on this page.
Choose the Right Bidding Strategy
- If your company’s goal is to increase profits, you want your digital campaign to achieve the highest conversion value possible with a fixed budget or ROAS. The most appropriate Smart Bidding marketing strategies to achieve this are maximizing conversion value and target ROAS.
- If you want to increase sales or leads, the goal of your campaign should be to maximize the number of conversions for a given budget or CPA. Therefore, your Smart Bidding strategies will be to maximize conversions or target CPA.
- If your goal is to generate traffic to your website, you want your campaign to get as many clicks as possible with a specific budget. You should choose the maximize clicks strategy.
- If you are looking to increase or maintain your notoriety, the objective of your campaign should be to get a good share of impressions. For this, your strategy should be target impression share.
Adjust Your Account Structure and Settings
Google Ads recommends simplifying your account structure because Smart Bidding works on all account structures. In general, each campaign should be based on a goal, following the recommendations outlined in the previous point.
Another important recommendation is to avoid having your marketing campaign limit by budget. To take full advantage of Smart Bidding, Google Ads recommends the daily budget to be 20-30% higher than your spend.
Test Automatic Bidding Strategies
To find the Smart Bidding strategy that works best for your account, you’ll need to experiment. Take note of these recommendations from Google:
- Use experiments to test automated bidding performance focused on a single key indicator.
- Choose large campaigns so you can experiment comfortably, as the more data that\s available, the faster and more reliable the process will be.
- Start experimenting with targets that are in line with your CPA or ROAS history.