Smaller Google AdWords accounts and companies relying on lower bid campaigns may soon be benefiting from AdWords Smart Bidding. This automated bid strategy optimizes your bidding for maximum conversions and conversion value. Similarly, Auction-Time, Automated Bidding uses machine learning to make informed decisions within a given campaign. Smart Bidding harnesses this technology to reduce wasteful spending and improve ROI.
AdWords Smart Bidding Benefits
- Next-Generation Machine-Learning – During bidding, algorithms look at many factors to accurately predict how various bid amounts will impact conversions and performance.
- Many Contextual Signals – Auction-time-bidding factors in numerous signals to optimize bids. This includes manual adjustments like device and location, plus some that are unique to AdWords Smart Bidding. For shopping, the actual search query is considered, as are product attributes. Signals that will soon be added to the criteria are: price competitiveness, how your product price compares to other advertisers in the same auction, and seasonality.
- Flexible Performance Controls – Set performance targets and customize settings based on your specific business goals.
For the best results with Google AdWords Smart Bidding, it is recommended that advertisers have at least 30 conversions for Target CPA and 50 conversions for Target ROAS in the past 30 days, so that the algorithms will have ample data to make bidding decisions. Smart Bidding helps use advertising budget more effectively and improve performance by adjusting bid strategies “on the fly” to respond to fast-changing, real-time dynamics. And that’s always a welcomed innovation.
Photo credit: Martin Louis Photo credit: Stathis Edel Featured photo credit: christophe.benoit74