These types of strategies have come to stay and increasingly demonstrate their great potential when it comes to improve the results of our Google Ads campaigns.
What is Smart Bidding?
We can define Smart Bidding as a set of strategies for automatic bids
This is possible thanks to the machine learning or machine learning that Google has been creating over time, with this system you can predict patterns and have a wide variety of contextual signals that allow the tool to do an ideal automation job to improve the conversions of our campaigns.
What are automatic bidding strategies and what do they consist of?
Between the automatic bid strategies who understand the Smart Bidding we find:
Maximize clicks: This bidding strategy in Adwords is perfect if you are looking to increase traffic to your website, the system will seek to potentially increase the number of clicks your ads receive within the established budget.
With this type of strategy you can set a limit of CPC so your clicks are not too expensive.
Maximize conversions and maximize conversion value: It is the ideal strategy if your goal is to improve the conversion rate as much as possible with a certain budget. In this strategy, Google will set the bids automatically and we will not be able to limit the cost per click.
ROAS (Return on Target Advertising Investment): The main objective of this strategy is to maximize the profitability of the campaigns. It is important to note that to use this strategy, the ideal is to have a history of conversions in the campaigns in which it is going to be used, it is recommended at least 20 in the last 30 days.
CPA (Cost per Acquisition): If what you are looking for is to continue obtaining conversions but that they do not exceed a certain cost per conversion, this is your strategy, with it you can control the cost of your leads or sales since you establish the limit.
Advantages of using automatic bidding – Smart Bidding
Next we are going to number some of the advantages and benefits of Smart Bidding in your Google Adwords campaigns:
Free up time for the account manager: thanks to the algorithms that allow us to execute and plan a series of tasks that in turn allow us to achieve the results that we have set for each campaign.
Improve campaign performance: the system evaluates all the auctions in which we leave to select those in which there is a greater probability of converting.
Improve our positioning: If we use any of these automatic bids, we have a better chance of appearing above competitors who use manual bidding strategies.
Economic savings: Using automated bidding strategies will also save you money on your campaigns as there is less room for error when using advanced and machine learning.
But beware! Use this type of automatic bids It does not mean that we should neglect the rest of the aspects that the campaigns encompass, far from it.
The structure of the campaigns must be correct and in accordance with the web page, the ads must be well optimized with an adequate CTR, the keywords must be of quality and relevant to our ads and the negative keywords must be well worked.
It is also important to talk about the “requirements” that we need to meet to apply this type of strategy. Requirements as such do not really exist, but if a series of parameters is not met, the potential of the Smart Bidding it is negatively affected.
We must evaluate if our Google Ads campaigns are truly prepared to apply this type of automation. Therefore, it is very important to take into account the following factors:
1. Correctly measure the conversion actions of our campaigns.
As we have mentioned above, Smart Bidding It relies on behaviors and contextual signals to learn and apply improvements to our campaigns, so if we provide them with false or worthless information, learning this type of automatic bid will be wrong.
It is very important to check that we are measuring the most important conversion actions for our campaigns: form submission, purchase on the web, call a phone number on your website, etc. And avoid duplicate or misconfigured conversions.
2. Know your goals to select the correct bidding strategy.
We have to be very clear about the objective we want to achieve with our campaigns, so that based on that we can adjust our bid strategy.
If your goal is to increase your website traffic, one of the best options may be the maximizing clicks bid strategy.
If your goal is to increase conversions, perhaps you should use a strategy to maximize conversions, and if what you want is that these conversions have the highest possible value that strategy can evolve to maximize the value of conversions.
If what you want is to achieve conversions at a limit price, the CPA is the best option since you yourself will be able to establish what you want to be your cost per acquisition of each lead or purchase.
In short, the Smart bidding can you help us to obtain better results in our Google Ads campaigns As long as we use these types of bidding strategies appropriately and take into account all the factors mentioned above.
Google’s machine learning is here to stay and we must familiarize ourselves with these types of automations that are proving that they will give us more benefits than headaches.
If you want to optimize the value of the conversions of your campaigns in real time, do not hesitate to implement any of the Smart Bidding strategies in your adwords campaigns.
Now that you know better what Smart Bidding is and how you can improve your campaigns, in Neoattack We are experts in managing Google Ads campaigns, so if you want to grow your business, do not hesitate to contact us, we will be happy to help you.