Google Ads automated bidding saves you from spending countless hours managing your bids for campaigns. It leverages AI to set bids, leading to better results in terms of clicks and conversions. Also known as Smart Bidding, automated bidding has brought more efficiency and convenience to the lives of advertisers. Now, the task of optimizing ad performance is easier than before. Automated bidding strategies save both the time and effort you can direct in creating other crucial marketing strategies. In this post, we’ll explain the core benefits of Google Ads’ automated bidding for your marketing goals.
What is Google Ads Automated Bidding?
Automated bidding strategies utilize Google AI to optimize your bids for every auction for high conversions or return on investment (ROI). A bid means the amount you agree to pay for every click on your product or service’s advertisement. Traditionally, advertisers configured them manually and updated the bids based on their advertising budget.
With Google Ads’ automated bidding, you don’t need to decide the amount to bid on your ads. Instead, it will be set automatically to drive better ROI. This type of bidding considers auction-time signals to get to the roots of searches done by people. These signals include the device, place, time, remarketing list, language, and searcher’s operating system. The search engine adjusts your bids the moment AI algorithms detect someone with a high likelihood of converting.
Read Also:- How to Set Manual CPC in Google Ads?
Types of Automated Bidding Strategies
There are six major Smart Bidding strategies advertisers can use. We have explained them in detail below.
1. Maximize Clicks
This strategy sets the bids for the highest number of clicks. You don’t need to worry about surpassing your ad budget. You can implement this strategy singly or across various campaigns. If you aim to increase your website’s visibility and traffic, this bidding strategy will be ideal.
2. Target Impression Share
Target impression share configures your bid so it shows at the top of the search results on the first page or in any particular position. If your aim is to make your offering or website visible to more people, Target impression share bidding will be appropriate. Ad campaigns with brand terms with the goal of appearing on the search results every time a user searches for the brand can also leverage this automated bidding strategy. It works perfectly to enhance brand awareness and increase familiarity with your business name.
3. Target CPA
The Target CPA bidding technique is to optimize your conversions without exceeding your target cost per action. After you configure a cost per action, Google Ads uses it to set a bid according to the potential of that ad to convert. This type of bidding discovers the most appropriate bid for your ad whenever it is qualified to appear. This happens as the AI uses historical data about your campaign and contextual indicators like device and location.
In order to use this strategy and gain its benefits, you must have a decent number of conversions (a minimum of 15 conversions in the last 30 days). Another related prerequisite to using Target CPA effectively is setting up conversion tracking inside your Google Ads.
4. Target ROAS
The Target ROAS automated bidding strategy helps in gaining maximum conversions at target return on ad spend or ROAS. The Target ROAS must be entered by you as a percentage. Here’s the formula to compute it:
Target ROAS percentage = Your conversion value ÷ ad spend x 100%
Online retail and e-commerce companies can use Target ROAS if their Google Shopping campaigns lead to high conversion value. Similar to the Target CPA strategy, Target ROAS will work when you have had at least 15 conversions in the previous 30 days. It gives the AI the needed data to track.
Read Also:- How To Calculate ROAS In Google Ads?
5. Maximize Conversions
Maximize Conversions allows you to get the highest possible conversions without your budget and is perfect for advertisers desiring quick results. It is quite a competitive bidding strategy that needs you to be cautious, especially with a limited budget. It’s because your target CPA will be high, but with an increase in the number of conversions, it’ll be lower.
This Google Ads automated bidding strategy does not focus on keywords. It signals the search engine whom it should go after rather than what terms they are using to search for. The bidding comprehensively assesses if a visitor has watched a video, explored a website, or read an article or blog. Google will then bid high, irrespective of whether that person searches for it until it is related to your offering.
6. Maximize Conversion Value
The Maximize Conversion Value bidding strategy configures your bid to optimize the value of conversions without allowing you to exceed your budget. If you have adequate conversion data for Google Ads AI and have set up conversion tracking, using this strategy will give significant results. To gain the most benefits from this strategy, you should review the conversion rate from your ad campaigns and, accordingly, optimize the landing pages. This will facilitate an increase in sales and lead generation. eCommerce businesses that have a particular ad budget and want to maximize their revenue from paid clicks should consider this bidding strategy.
The Core Benefits of Using Google Ads Automated Bidding
The core benefit of using Google Ads automated bidding is optimizing campaigns for your specific goal and getting measurable outcomes without spending significant time. Some more advantages of implementing automated bidding are as follows:
- Ideal for advertisers new to Google ads – It takes a lot of time and patience to figure out bids that make a difference. Google’s automated bidding is data-driven by default. So, it prevents young and inexperienced advertisers from doing extensive research and reduces the risk of setting up potentially unprofitable bids. Moreover, the bidding strategy only gets better as the system gets more data from your campaign’s performance.
- No need to monitor bids for specific keywords – Smart Bidding modifies bids in actual time. So you don’t have to track or adjust bids for specific groups of ads or keywords. Your bids are optimized according to the particular conditions of every auction. When the bidding process simplifies, it results in greater efficiency.
- Customize bidding to your unique goals – Smart Bidding uses a comprehensive set of signals to modify your bids as per your unique context. Besides contextual indicators like system, location, and time, the bidding accounts for signals like the user’s browser, operating system, interface language, actual search query, site behavior, and more.
- Gain exceptional insights about your bidding performance – Another core benefit of Google Ads’ automated bidding is getting invaluable insights about your campaign’s performance. Reporting tools like bid strategy reports, drafts and experiments, and simulators allow you to know how the current bidding technique is performing. In addition, you can track your budget and change strategies to have greater control over your ad spending.
Concluding Words
Bidding is pivotal to running a paid Google ads campaign. However, most advertisers find it challenging to create an effective bidding strategy with relevant keywords that are within their budget. The core benefit of Google ads’ automated bidding is simplifying this process. Google’s AI and ML systems optimize your bids according to your goals, resulting in the most advantageous outcomes. Thus, you can concentrate on other essential elements of marketing, like creating unique ad concepts and enhancing landing pages. If you want to explore the many benefits of using automated bidding in Google Ads, feel free to contact Website Pandas’s Google ads experts. We have run hundreds of successful campaigns and are eager to help you meet your conversion goals through it.
