Are you tired of manually adjusting your Google Ads campaigns? Well, Google’s got you covered with their Smart Bidding feature.
It’s an AI-powered tool that automates bid adjustments and optimizes your ad performance based on real-time data.
But, is it all sunshine and rainbows?
In this blog post, we’ll dive into the pros and cons of Google Smart Bidding.
While it can save you time and potentially improve your ROI, there are also some drawbacks to consider.
So, if you’re wondering whether this feature is right for your business, keep reading to find out.
What Is Automated Google Smart Bidding?
Have you ever set up a Google Ads campaign and wondered how much you should be willing to pay for your ad to be shown? Well, that’s where bidding comes into play.
Bidding is the process of telling Google how much you’re willing to pay for your ad to be displayed, and there are two different ways to do it.
- Manual
- Automated
With manual bidding, you get to set the maximum amount you’re willing to pay per click on your ad (also known as cost-per-click or CPC).
Also, you can make adjustments based on how well your ad is performing. This means that you have to monitor your ad’s metrics and adjust your bid accordingly.
On the other hand, with automated Google Smart Bidding, Google takes care of the bidding process for you.
Using automated rules, Google adjusts your bids based on your ad’s likelihood of getting a click or conversion.
This means that you don’t have to monitor your ad’s metrics as closely, and you can let Google handle the bidding process for you.
In Automated bidding, you may be able to make more informed bidding decisions with automated bidding.
So, whether you prefer to be hands-on with your bidding or let Google take the reins, there’s an option for you.
But, it’s all about finding the bidding strategy that works best for your specific ad campaign.
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Types Of Google Smart Bidding
Manual Cost Per Click (CPC)
- The easiest bidding strategy to use
- The best place to start for beginners in PPC
- Requires a time investment and may be underinformed
Enhanced CPC
- A semi-automated bidding strategy that allows Google to make adjustments to manually set keyword bids
- Increases or decreases a bid based on the likelihood of a sale
- This may result in increased click-through rate and conversion rate
- Watch for increased CPC and CPA
Maximize Conversions
- A fully automated Google Smart Bidding strategy that chooses a CPC bid based on the goal of the bidding strategy
- The design aims to maximize the number of conversions while staying within your daily budget.
- Use campaign-specific daily budgets and have conversion tracking in place
- Keep an eye on CPC and set a target CPA
Maximize Clicks
- Works best for campaigns focused on generating website traffic
- May not be ideal for campaigns focused on specific actions or conversions
- Enhanced Cost Per Click (eCPC)
- Automatically adjusts manual CPC bids based on the likelihood of a click leading to a conversion
- Works best for campaigns focused on conversions rather than just clicks
- eCPC may increase your bid too high, leading to wasted spend
Target Search Page Location
- Automatically sets bids to get your ad to the top of the page or on the first page of search results
- Works best for campaigns focused on brand awareness
- This might lead to high costs and low conversion rates if not used correctly
Target Outranking Share
- Automatically adjusts bids to outrank a competitor’s ad in the search results
- Works best for campaigns focused on competitive industries or specific keywords
- It may lead to high costs and low conversion rates if not used correctly
Maximize Conversion Value
- Automatically sets bids to generate the highest value conversions
- Works best for campaigns focused on high-value actions or conversions
- Caution: Requires accurate conversion tracking with assigned values to work correctly
Target CPA (tCPA)
- Automatically adjusts bids to achieve a target cost per action (conversion)
- This strategy is most effective for campaigns that have a specific conversion goal in mind.
- Caution: requires accurate conversion tracking and minimum conversion data to work effectively
Target Roas (tROAS)
- Automatically adjusts bids to achieve a target return on ad spend
- Works best for campaigns focused on maximizing the value of each conversion
- It requires accurate conversion tracking and minimum conversion data to work effectively
Target Impression Share
- Automatically sets bids to achieve a target impression share percentage
- Works best for campaigns focused on increasing brand awareness or dominating a specific market
- It may lead to high costs and low conversion rates if not used correctly
Pros And Cons Of Smart Bidding
Smart Bidding Pros
- Auction-Time Bidding: Smart bidding analyzes a variety of signals to optimize toward driving the conversions most important to you. It helps you to free up your time to focus on other business objectives.
- Advanced Machine Learning: Algorithms keep getting smarter! They use past and present data to find the best way to get you more conversions.
- Saved Time & Efficiency: Smart bidding can save you valuable time and effort by automating the bidding process.
Smart Bidding Cons
- Lack of Control: While Smart Bidding takes care of some decisions for you, you are giving up some control of your campaigns.
- Set It & Forget It Mentality: It’s important to keep an eye on your account and make adjustments where necessary, rather than just relying on Smart Bidding to do everything for you.
- Learning Period: Smart Bidding requires a learning period, which can take up to seven days or longer depending on the campaign.
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