The main factor determining the success of a Google Ads campaign is the bid price. How your campaign performs and how much your ad shows is affected by your bidding strategy. To achieve your business goals and optimize your budget, choose Google Ads automated bidding strategies. If you want to better understand this type of automatic bidding, follow this article!
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What is automated bidding?
Google Ads offers several bidding strategies that are tailored to different campaigns. To ensure customers take the action businesses want, Google has introduced an automated bidding strategy.
This helps adjust bids at each auction to help your ads be displayed and achieve your desired goals. When choosing an automatic bidding strategy, Google Ads helps your business achieve specific business goals most accurately and cost-effectively.
Google’s automated bidding feature saves your time and effort on research and testing as you set bids to help you achieve your ad performance goals. With this bid strategy, Google uses AI technology to bid on your ad based on the likelihood that it will result in clicks or conversions.
When choosing this bidding strategy, advertising performance is optimized and ads about products and services will be displayed to the right target audience. Your ads have a higher chance of showing up and driving more traffic to your website and brand awareness. Increase conversions on your website by increasing bids for high-converting audiences.
Why choose Google ads automated bidding strategies?
Each type of Google Ads automated bidding strategy is designed to help you achieve a specific goal for your business.
Unlike the manual CPC bidding method, automatic bidding uses Google’s machine learning to help you reach the right price for each auction. Google Ads automated bidding automatically matches your bids to your performance without the need for complicated tasks.
Google Ads automated bidding strategy helps you increase ad clicks, search visibility, conversions, or conversion value.
Smart bidding is an automated bidding strategy based on conversions or conversion value. This type of bid strategy sets unique bids for each auction based on information available at auction time. This information includes the time of day, the specific ad being displayed, or the user’s device, location, browser, and operating system.
When you choose an automatic bidding strategy, Google’s AI will learn as your ads run. Then use information about a bid’s ad performance to set future bids accordingly.
You can set an automated bid strategy at the portfolio level for multiple campaigns, or a standard bid strategy at the campaign level.
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Types of Google automated bidding strategies
Corresponding to each advertising goal, there will be an appropriate Google Ads automatic bidding strategy:
If your goal is to increase visits to your website, maximizing clicks bidding will help your ad get the most clicks for a given budget. You can use this strategy as a standard strategy within a single campaign or as a portfolio bid strategy across multiple campaigns.
In cases where the goal is to increase ad visibility, the Target Impression Share bidding strategy should be selected. Choosing this strategy, the ad will be displayed in the first position on the page, at the top of the page, or anywhere on the Google search results page. This bidding strategy is for the Search Network only.
If you want your ads to get more conversions, bid smart by choosing Target CPA bidding. When you choose this strategy, you’ll get the most conversions at the target cost per action (tCPA) you set.
The goal you want to achieve is target return on ad spend (target ROAS), then choose the target ROAS bidding strategy. If you choose this strategy, you’ll get the highest conversion value for the target return on ad spend (tROAS) you set.
The Maximize Conversions bidding strategy will help you get more conversions and optimize your budget. You can set a target CPA in your Maximize conversions bidding strategy. Smart Bidding helps you get the most conversions at the cost per action you set.
To get higher conversion values for your ads while spending the budget you set, choose the Maximize conversion value bidding strategy. When you choose this strategy, Google will maximize the advertising metrics achieved within a certain budget.
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Instructions for creating a Google Ads automated bidding strategy
You can create an automated bidding strategy for a single campaign (standard strategy) or multiple campaigns (portfolio bid strategy) by:
Access your Google Ads account, then click on the (+) icon and select Create new campaign or you can create or change them in your campaign settings.
Create a Google Ads automated bidding strategy on the Bid strategies page.
If you want to create, view, or manage a bid strategy, go to your Google Ads account and then click the Tools icon. Then, click on the Budget and bidding strategy drop-down menu and then click on Bid strategy.
Now you have a better understanding of the Google Ads automated bidding strategy. Hopefully, this useful information will help you deploy successful advertising campaigns and get the best results!
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Frequently asked questions
A bid cap is a strategy that allows advertisers to have the most control over their Facebook advertising budget because you make direct decisions about the cost of every bid.
You should set bid caps if you want to strictly control costs or focus on high-quality conversions. Track all your costs so you can target the best ad placements.
If your ads are underperforming or consuming too much budget, it could be because your bid cap is too low. In case you want to reach more of your target audience, increase your bid cap. You can experiment with different versions of your ad to target a broader audience.
There are several ways to use smart bidding:
Allow new bidding strategies to take 1 to 2 weeks to calibrate depending on the amount of data. The length of this phase will impact when you can make changes to your campaign and evaluate its performance. Details on the timing of this phase are in the bidding strategy report.
During the learning phase, you should limit making changes to your campaign or landing page. Take time to learn before proceeding to make changes.
Short-term promotions and seasonal events often cause drastic and sudden changes in campaign performance. These events impact Smart Bidding algorithms. All strategies responded positively with a sharp increase in conversions. So, you don’t need to adjust your bidding strategy based on a spike in conversions.