There is no question that machine learning is the future of search. New search strategies and bidding strategies continue to appear everywhere. In the last year alone, Google added two new bidding strategies (maximize clicks and maximize conversations), introduced predicted click-through rate and optimized ad rotation in AdWords, and launched Google Attribution
Businesses can come to expect that the quality of the machine-learning driven features will only get better in the future. For today, marketers need to decide the best program to use to achieve maximum results, and smart bidding might be just what your business needs to thrive.
What Is Smart Bidding?
Google defines smart bidding as “A subset of automated bid strategies that optimize for conversion value.” It uses machine learning to maximize conversion across your campaign through various strategies. The strategies include Target ROAS, Target CPA, Enhanced CPC, and Max Conversions
The key benefits to smart biding are threefold. First, you can use a wide range of signals to customize bids to a specific attribute, such as location, device, time of day, language, and more. Second, smart bidding is flexible in that it allows you to set performance targets that will steer bidding and optimize search bids to your chosen attribution model. And finally, the reporting and status updates can help you understand exactly how smart bidding is working to meet your goals.
Smart bidding incorporates billions of data signals to calculate the likelihood of a conversion, based on the performance targets that have been set. There is no one-size-fits-all bidding strategy. All of the strategies have their own individual benefits depending on your business needs.
Reasons To Consider Smart Bidding
Smart bidding can be beneficial to businesses for many reasons. It’s just a matter of how it will align with your business. A few reasons why it can work for you include the way it:
- Looks at search query level rather than keyword level.
- Analyzes search contexts to predict the likelihood of conversion.
- Adjusts bids for every auction, rather than every hour.
- Leverages auction-time signals that may be only available to Google.
- Performs cross-signal optimization rather than considering signals individually.
What Smart Bidding Is Not
Smart bidding is not the answer to everything, nor is it the only tool that you should ever use. While we already know what smart bidding is, as well as why it can be beneficial to your business, there are still a few things that smart bidding isn’t. For example, smart bidding is helpful when you can effectively align it
One major strength of smart bidding is that it incorporates auction level signals that are not included with manual bidding. If you have a small account, or if your marketing campaigns are already performing well, smart bidding might not be worth the loss of control that comes with using it. Larger accounts, however, will see the benefit with extra signals and the ease of creating a portfolio bid strategy.
If you are currently getting good results with manual, then moving to automation might not be your best option. Your business should always start with manual first, and then test it against automation to determine results. If the results aren’t great, smart bidding might be worth a consideration. It’s important to note that smart bidding won’t work unless it has historical data to build upon, and manual might meet your specific needs better in the end. For questions and concerns about smart bidding, AdWords, or other automation software, contact http://ignitedlocal.com for assistance.