Smart Bidding is a Google Ads feature that uses machine learning algorithms to automatically determine the best adscript, positioning, and bidding. Google Ads allows you to bid on your ads in a variety of ways. It is entirely up to you and your business. Smart Bidding eliminates the guesswork and hard lifting associated with setting bids in Google Ads.
Bidding was manual when it first launched. Individual bids for specific keywords or multiple placements. Then came mobile devices, which provided even more possibilities that had to be considered. Such as location, time, or day of the week. The human brain is incapable of processing all of this information.
This is one of the benefits of smart bidding. For each auction, it combines billions of signals of each bit. As a result, you must devote less time to manual activities and more time to strategic efforts. It enables you to carry out your marketing responsibilities.
How to choose the right Smart Bidding strategy?
There are four Smart Bidding strategies that we’ll review:
- Maximize conversions
- Maximize conversion value
- Target CPA
- Target ROAS
Machine learning is used in all of these Smart Bidding techniques to optimize for conversions or conversion value. The best thing about all of these tactics is that they don’t need any previous conversion history to get started. This means that you can use Smart Bidding on a whole new campaign.
Maximize conversions sets bids for you automatically to help you get the most conversions for your campaign while staying under the budget.
Similarly, Maximise conversion value assists you in obtaining as much conversion value as possible when staying under your budget. Keep in mind that in order to use this bid strategy, you must track conversion value.
These are good options if you don’t have a specific cost-per-acquisition goal or if your campaign has zero to little conversion volume. Even if you’re new to Google Ads, these bidding strategies don’t need any prior conversion results.
Target CPA generates bids to help you get as many conversions as possible at the cost-per-acquisition target you set. Your Target CPA is the average amount you’d like to pay for a conversion. Like Maximise conversions, Target CPA does not require your account to have any conversion history. The Target CPA you set will have an impact on the number of conversions you get.
Lastly, Target ROAS lets you bid based on a target return on ad spend. Your target ROAS is the average conversion value you’d like to get for each dollar you spend on ads. Before you can apply a Target ROAS bid strategy to your campaign you’ll need to set up conversion value tracking. To use Target ROAS bidding for Search, you must have at least 15 conversions in the past 30 days.
If you’re new to Google Ads, consider starting with Maximise conversions or Maximise conversion value and then going to Target CPA or Target ROAS once you’ve established an objective. If you’re not sure which Smart Bidding strategy to use, you can use Google Ads’ Recommendations page to learn which bidding strategy is a good match. You can then apply a Smart Bidding strategy directly through the Recommendations page.
Starting your Google Ads campaigns with Smart Bidding strategies is a good choice for both big and small businesses and works well with a simple account structure. Smart Bidding can help you save time which will allow you to focus on more strategic areas of your business.