We have entered a period of rapid digital renaissance, and today, digital marketing experts have so many ways of reaching so many people on so many devices. But at the same time, it is pretty difficult to keep up with all the changing variables and added options. From comprehending changes in ROI with a change in the device to setting accurate bids for two similar users with differing intents, it might get taxing at times!
It is easy to lose sight of the main job while taking care of other details. The main priority, in this case, is to always think strategically while using the same opportunities for driving growth. Naturally, Google has already started thinking about such challenges. The question that consequently pops up is – Isn’t it possible to get rid of complexities and save your time and money while focussing on building an excellent user experience?
We sincerely believe that’s possible.
Everything Begins With Strategies:
Without advertising, bids online have basically two main goals,
- Brand awareness – using search for driving more clicks and visibility
- Revenues or conversions – using search for more conversions
For reaching such goals, most people depend on strategies like,
While all the above-mentioned strategies are effective in their own ways, not a single one can make the most of the technology that is currently available. To be honest, manual methods can no longer compete in the present world led by automation and programs.
This is where machine learning steps in!
Real-Time Automation: What Is Machine Learning?
The advantages of automated bidding are several – saving you from all the unnecessary guesswork, waste of time, and the like. But you must be wondering which of the following is a core benefit of google ads automated bidding?
- Is the time of essence here? Or
- Is it the unnecessary guesswork that you no longer need to do?
Don’t worry, we are here to answer all your queries. But first, let’s talk about machine learning.
In case you didn’t know, machine learning provides an automated method of optimizing all your bids for either achieving a higher number of conversion values or more conversions in general. And that too in real-time! So, with the help of machine learning, Google smart bidding can help you depend on data power to work well for you!
What Is Google Smart Bidding?
Google’s professional website defines Smart Bidding as a part of ‘automated bid strategies’ for optimizing either your conversion value or conversions. Simply put, Google smart bidding basically takes the help of machine learning, as explained before, for optimizing all your bids in order to maximize both conversion values and conversions across your bidding portfolio and campaigns.
Some of the more popular smart bidding strategies are as follows,
- Target CPA,
- Target ROAS,
- Maximize Conversion,
- Maximize Conversion Value
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Additionally, Google Smart Bidding has several benefits, excluding insane machine learning abilities. These benefits are as follows,
- A vast scope of signals for tailoring bids to suit someone’s unique, individual context. So, naturally, it is inclusive of location, remarketing lists, time of the day, device, language, browser, and lots more.
- Flexible control enables users to incorporate performance targets for steering bidding performances and optimizing search bids at the same time for your selected model of attribution.
- Status updates and transparent reporting help users to test whether smart bidding works well for them. This also helps users to figure out what’s happening under cover of the user’s bidding strategies.
Bidding Strategies: How Does Google Smart Bidding Work?
Google ads smart bidding has several strategies, but the four alternatives mentioned above are perhaps the most popular ones. In order to find out more about these strategies, simply scroll down for the same!
Strategy 1: Target CPA
For those who don’t know, CPA stands for ‘cost-per-action.’ The target CPA method can be used for setting both display and search advertisements. The bids are set in a specific way for achieving maximum conversions, keeping in consideration the target cost set by you. The target cost amount set by you is basically your target cost-per-action.
This type of bid has a specific purpose, which helps brands to achieve more conversions, such as signups, product sales, app downloads, and the like, and at the same time, keeps the target cost within your budget.
Strategy 2: Target ROAS
For those who don’t know, ROAS stands for ‘return on ad spend.’ In this condition, the user’s advertising campaign is automatically set up while targeting an optimal ROAS. In this case, you are not technically focussing on conversions or clicks – you are basically focussing on optimizing your revenue or return amount.
For this strategy to work out well, you will need to allow conversion tracking for ad campaigns while setting up values for the same. If you can comprehend the perceived or real value of individual conversions, it will help Google reckon bids in such a way as to achieve a batter return on ad spend or ROAS.
Strategy 3: Maximize Conversion
The strategy is in the name, really. This strategy literally maximizes conversions with the help of the advertisement budget set by the users as well as your maximum everyday budget. The maximize conversion strategy is pretty similar to the maximum clicks concept. However, there is one problem with the clicks strategy.
In order to maximize your clicks, your advertisement budget might get over relatively faster as compared to the other strategies. Thus, if your focus is on maximizing conversion without eating through your entire advertisement budget, there’s only one thing that you can do!
Strategy 4: Maximize Conversion Value
The best part? Instead of focusing on maximizing your conversions solely, in this case, users have to prioritize maximizing the conversion value. So, to answer your question, which of the following is a core benefit of google ads automated bidding, we feel this is perhaps one of the most beneficial strategies.
In this case, Google smart bidding takes into consideration the user’s revenue metrics while making bid adjustments for meeting your revenue goals.
Now that you know what Google smart bidding is and how it works, it is only a matter of time, you will be using the aforementioned strategies for meeting your campaign goals. Remember, the trick to successful online advertising is setting your bid accurately – if you don’t set the bidding factors right, then how will Google determine anything about your campaign!
Thus, use smart bidding or even google ads automated bidding techniques to set optimized bids and meet your goals right! Don’t forget to let us know in the comment below your thoughts on the same!