What is Smart Bidding?
Google has set an advance machine learning algorithm that helps you to optimize your conversions and as a result of this, your conversion value increases in all of the auctions you make, this feature is known as “auction time bidding”. Smart bidding strategies include Target CPA, Target ROAS, Maximize Conversions, and Enhanced CPC (ECPC). With better data history you can get higher chances of conversions that Google decides for you.
Why you should use Smart Bidding Strategies?
Smart bidding gives you an opportunity to get your work done in less time and you can see improvement in the performance. Here are a few benefits and bidding strategies mentioned for those who use Smart Bidding for their ad campaigns.
When you make a bid, machine learning algorithms enable you to make more accurate predictions based on the data collected and tells you how different bid amounts can give better conversions or conversion value. Because of the machine learning ability, you can make identifiable attributes about the customer considering the past activity. Plus you can set goals, performance targets, and customized business goals. Smart bidding also gives you an opportunity to make very accurate reports of the overall performance with its tools and you can troubleshoot the errors easily.
- Choose the right metrics for performance measuring
Focusing on the right performance metrics is very important because otherwise, you will end up measuring the wrong objectives. Google measure metrics on the basis of the number of conversions and do not look at how valuable it is to your business.
- Take time for data collection
Never be impatient to use Smart bidding at the start of your campaign. This is because of the reason that Smart bidding works with the data collected by the previous activity on your ad campaign. So when you start your campaign, take at least 3 months to develop data and how your keywords and ads perform
- Be smart while setting your budget
When you set the budget for your keywords don’t set it too low because in this way Google Ads Smart bidding will limit your Ads’ reach by lowing your bidding prices.
- Don’t make frequent changes in your Smart bidding settings
Keep in your mind that you do not have to make bigger changes in your campaign settings frequently because doing so you will not be able to measure the success of your campaign. Test with your keywords for at least 2 months to finally jump to the conclusion. If you will make changes frequently the machine learning will be disturbed and it will have to relearn ad copy changes, keywords which will ultimately slow down optimization.
- Start your campaign manually
It is highly advised that start your campaign manually. It is an obvious situation when you start your campaign that it will take time to synchronize with automated strategies of Google ads. It is advised to start your campaign manually and keep in mind that data learning can take more than a month depending upon the conversion volume of your Ad campaign.
Google Ads Smart Bidding is the best way to optimize your goal-oriented advertising campaigns. If you have set goals and a clear strategy for your Ad campaign, Google Ads Smart bidding with the help of optimized, automated bids will make this task more efficient and effective.
Keep a check on the impact of Cost Per Click CPC and it is good to be aware of all the Google Ad Smart bidding policies to avoid any legal issues.
Anderson Frank: One of the best digital marketing Expert of 2019. He has over 14 years of marketing experience and has led the digital marketing strategy for companies like Salesforce, Mint, Intuit, and many other Fortune 500 caliber companies. For the last 2 years he is working with the fast growing Ads analytics company “PPCexpo” as a Google Ads Analyst.Recently we update this article Should You Use Google Ads (AdWords) Smart Bidding?.