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What is Smart Bidding in Google Ads?

What is Smart Bidding in Google Ads? In this article, we are going to get acquainted with the smart pricing of Google Ads or Smart Biding. To better understand this issue, we must introduce Google Ads in simple and concise language. Google Ads is Google’s advertising platform, which is based on the number of clicks, which means that you pay Google for every click on your ad. It also costs almost every time your ad appears in Google results to compete with others.

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Keyword selection

Note that some topics and businesses have specific and limited keywords and therefore have low search statistics and as a result, the number of conversions is reduced, in these cases Google can not because of insufficient data. Perform price optimization well.

Price offer on Google Ads

In Google’s advertising platform, bidding is done in two ways: either automatically (automated) or manually (manual).
In the manual mode, you should know that the requester of the click-through ads offers the maximum bid cost per click to the advertiser, but in the automatic mode, it is the advertiser, ie Google, which according to its criteria, the maximum amount of cost (Max CPC ) For each click.
Google Smart Tips on the cost of each click utilizes machine learning knowledge. To make this choice, there are 4 steps that we will examine together:

Assess the suitability of the desired account

To use smart bidding, it is better to see when the smart pricing system is suitable for what topics and strategies, and when it is not suitable! This means having a strategic view of the issue. In the following, we will review the following items.

Account freshness and lack of sufficient information

One of the most important issues in Google Smart Pricing is that in any advertising account, conversion data helps to determine pricing optimization strategies.
So unless there is enough data in your Google Account about click conversion statistics to generate leads or sales or… (conversion), Google can not implement meaningful pricing.
Likewise, if you have about 100 conversions per month, Google Ads can have more and more important information to analyze. Simply put, the higher the conversion rate, the better the campaign.

Lack of proper division of converters

If your account has different types of conversions, you need to make sure that these conversions are split correctly before starting any strategy for intelligent bidding.

Lost data in Google Ads

Always check this. In some cases, customer revenue information is not properly collected in Google Ads, and check if there is any other key information that, if not, misleads Google Machine Learning?

Unstable market

Some markets survive in very volatile conditions, markets where events of just a few days can affect an entire year. In some cases, the turmoil is so great that intelligent pricing is not recommended at all due to the uncontrollable price of clicks.
In other cases, you can get bored of using Smart Biding until the market conditions calm down.

Choose a smart pricing strategy

The second step is to choose a smart bidding strategy. There are two layers of smart suggestions.
Layer 1 deals with Maximize Conversions, Target ROAS, and Target CPA strategies.
And layer 2 includes Maximize Clicks, Enhanced CPC, and Target Impression Share Bidding.
This is the gold standard of smart bidding strategies. Google Machine Learning will reach everywhere in your account and examine the signals associated with it. Over time, you will find that Google will be more inclined to optimize for keywords.
Choosing a strategy and goals is one of the most important issues for any business for your business. It is easy to relate the goals of any business to the strategies available in a smart building.
Do not forget that pricing automation can not enchant your business; Instead, you should set goals that are closely related to your performance and progress.

Predict and estimate a strategy experimentally

For this step, it is better to use the drafts and tests that are already available. The advantage of this method is that other campaigns have used them and the results are almost certain. Do not forget that it is not always possible to perform ideal tests, but this is definitely what you should pursue as your goal.
For accounts that have logical consistency, one option is to do a simple test before and after. This is not the most scientific method but it is better than nothing.

Performance optimization

This is one of the most important steps. This step is very dependent on the previous step, but in fact, each test is based on its previous results. Be sure to optimize your test. To find the right strategy, you must continue your testing, the more information, the better the result. Given that Google uses machine learning knowledge, the more data and the better the quality, the better the result.

Different models of Google Ads smart pricing

In this section, we try to acquaint you with different models or payment strategies so that you can choose the best one according to your goals.
There are several different smart pricing strategies that each prioritize a specific conversion goal that we are examining.

Target CPA

In this model, according to the maximum cost that is allocated to each conversion, the advertiser, namely Google, determines the proposed cost in such a way that the maximum conversion occurs.

Target ROAS

But this time, the advertiser or Google, depending on the amount of return on advertising capital, determines how much it costs per click to get the maximum conversion. The term ROAS stands for Return On Ad Spend.

Maximize clicks

In this model, Google sets the specified cost for your advertising campaign in a way that receives maximum clicks. In this case, you can also set a cost limit for each click.

Maximize conversions

In this case, the main goal is to get the most conversion per click following the main advertising budget.

Maximize conversion value

This time, the advertiser or Google tries to determine the cost per click so that it can receive the highest conversion value per click. (In Google Ads you can specify a value for each conversion)

Enhanced CPC

Optimizes maximum cost per click (CPC) to maximize conversion.

Target impression share

In this case, Google acts in such a way that for every click that the user makes, the chance that there is to show your ad will increase.
Intelligent operating systems have been created to optimize the display of advertisements and pay as much as possible.

Of course, pay attention to the fact that this bidding system will not always optimize the ads, and this issue may change due to other conditions and criteria. In the following, we will try to examine these issues.

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The information provided on this website does not constitute insurance advice. All content and materials are for general informational purposes only. Complete Insureon’s online application and contact one of our licensed insurance professionals to obtain advice for your specific business insurance needs.

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