Smartbidding , or automatic bidding , is an increasingly widespread practice among account managers in Google Adwords. Grosso modo, smartbidding is the automatic management of keyword bids or ad impressions in the display network and Google Shopping. One of the most complex tasks traditionally in the management of a CPC campaign is the allocation of bids. The manager must consider a wide variety of variables before determining the price he is willing to assume for each click on an ad. Variables such as performance per device, per day of the week or demographic can be examples of this.
The purpose of smartbidding is for Google’s powerful algorithm to take over part of these tasks, freeing the manager of time to take on more strategic tasks that can add more value to the development of the account . All the necessary calculations can be elaborated by the algorithm, capable of carrying out a large number of operations each time a search is carried out. Capacities that a human can hardly carry out.
SkWebDesigningSolutions; SEO albuquerque company defines reasons behind the main automatic bid strategies available in Google Adwords are the following:
The ROAS is the metric that indicates the percentage of revenues for each euro spent on advertising. If, for example, you win € 7 for every euro spent on an online advertising platform, the ROAS of the same will be 700%. Using the objective ROAS bidding strategy, it is possible to indicate the ROAS that you want to obtain with the Google Adwords campaigns and that it establishes the bids that are appropriate to achieve this figure.
Optimizing the budget of a campaign to try to get the most clicks to the web is an exercise in which it is necessary to achieve the optimal balance between the bids and the budget of the campaign. The smaller the CPC, the greater the number of clicks with the same budget. But there is a risk that the CPC is so low that the ads do not show up. Using the maximize clicks bid strategy, the ideal bid is automatically set so that the largest number of clicks on the website is achieved with the budget set. It is an ideal configuration for strategies based on increasing brand awareness or in the initial phase of a campaign in Adwords, where the pursuit of sufficient data is pursued to then optimize more specific marketing objectives.
Bid by location on the search page
Through this strategy it is possible to always show the ads in the position that is determined , regardless of the cost for each click that this implies. An ideal strategy when you want to always appear in first positions and thus try to get as much traffic as possible for a specific set of searches.
Higher ranking share
Through this bid strategy it is possible to show the ads always over a competitor that we select . It is even allowed to establish the percentage of times that we would like this condition to be fulfilled. The control of cost per click is lost since it is subject to market conditions.
One of the main marketing objectives pursued with campaigns in Google Adwords is to adjust the cost per conversion to a specific figure. With this option, it is possible to entrust this task to the Google algorithm . The relationship between the volume of conversions and the cost per conversion must be taken into account: generally, the higher the volume of conversions, the lower the cost per conversion. It is necessary to define the optimal cost that is willing to pay and assume that if you wanted to get a larger volume it would assume a higher cost per conversion.
Improved cost per click (CPCM)
It is the longest-running automatic bid strategy within Google Adwords. Through this strategy Adwords is allowed to increase or decrease up to 30% the determined bid if it considers that there is a high probability or not of that user making a conversion. It is necessary to consider that Google knows variables that the consultant can not, such as the behavior history of the user, something useful to define if at the moment in which the search is performed, the user is in a state prone to convert.
If the goal is to try to get the highest volume of conversions possible with a given budget , this option is ideal. The algorithm of Google will do everything possible to try to get the highest volume of conversions possible. The cost per conversion will always be the best fit that budget can achieve.
It is not always possible to apply an automatic bid strategy. This requires a minimum number of conversions and so the Google algorithm can interpret trends and draw conclusions . In particular, the minimum volume of conversions so that Smart Bidding strategies can be used effectively is at least 15 conversions in the last 4 weeks.