Did you know, 90% of AdWords advertisers time is spent optimising and only 10% on strategizing? (Google, 2018) With AdWords Smart Bidding, you can automate bidding strategies, leaving more time for you to work on other parts of your campaigns.
So, what is Smart Bidding?
Smart Bidding is Google’s new bidding strategies which incorporate machine-learning algorithms. Google define it as ‘a subset of automated bid strategies that use machine learning to optimise for conversions or conversion value in each and every auction’. It is being pushed a lot by Google at the moment, suggesting it will become routine for AdWords campaigns.
There are currently four key Smart Bidding strategies on offer to suit every campaign type. To use these bidding options, conversion tracking must be enabled. Below is a short guide to automated bidding.
1. Target Cost-per-Acquisition (CPA)
Target CPA bidding aims to gain as many conversions as possible at the CPA that you set, which is the average amount you want to pat for a conversion.
2. Target ROAS
Target return on ad spend (ROAS) helps to gain more conversions based on the return/revenue that you set. This strategy can be used for a single campaign or as a portfolio strategy for multiple campaigns. This strategy works by predicting future conversion value based on historical data.
This strategy is great for advertisers looking to gain profit based on revenue of the business.
3. Maximise Conversions
Maximise Conversions is pretty straight forward, it will gain as many conversions as possible within your daily budget.
This strategy is the best to collect lots of conversions, whilst not focussing on ad return. However, this strategy means the conversions do not have a set acquisition bid, which could prove costly for advertisers.
4. Enhanced CPC
ECPC works by adjusting bid prices for clicks that are more likely to lead to a conversion. Advertisers set a max CPC which the bidding strategy cannot exceed.
ECPC is great for Search and Display campaigns to increase conversions and maintaining a low cost-per-conversion. It is also good for Shopping campaigns to increase conversions and maintain spend.
Why move to Smart Bidding?
Besides saving hours of time each month, Smart Bidding has many advantage. Also, targets may be more achievable with Smart Bidding. Got a strict cost per conversion to reach? Target CPA bidding might be the strategy for you.
How to change your bidding strategy
As with every campaign, the bidding strategy can be changed under campaign settings. It is recommended that the account has at least 30 conversions for the automated strategies to be successful. Google also suggest giving the strategy at least 2 weeks to stabilise before reviewing.
More information on Smart Bidding can be found here.