Last Updated on 10 months by Usman Sheikh
What Is Smart Bidding in Google Ads? What It Is and Why Use It!
So you might have created a great new website. Your organic traffic is doing ok but might be looking to improve on those visitors by adding a little Google magic to the proceedings. Here’s where smart bidding in Google ads can help!
Google ads are a great way of bump starting your e-commerce and other websites and can effectively increase your conversions.
For those already using Google ads, or others who have started their journey, we will be exploring a new addition to the Google bank of resources, Smart bidding.
So what is smart bidding in Google Ads? How does it work? Is there any preparation you need to do and why should you use it?
In this article, we are going to explore all your questions about smart bidding. First, let’s take a look at the super-short answer, so you can get up and run straight away.
What is smart bidding in Google Ads? Smart bidding is a new addition to Google Ads. It’s a way of increasing sales and visitors by improving the performance of your Google Ad campaign. It uses artificial intelligence to analyze location, time of day, historical user info, and other data to predict the likelihood of a conversion to a sale.
So now you’ve got the quick take away and can start seeing an increase in your visitors ASAP, let’s explore a little more deeply.
You might be wondering what exactly smart bidding is, so read on to find out.
How does smart bidding in Google Ads work?
Smart campaigns are a new type of Google Ads, designed to help business owners improve the way they promote their products and services online.
Using smart technology, they can be set up in minutes.
As a busy entrepreneur, this smart tech will improve the performance of your ads and enable you to focus on other important tasks.
Smart ads can help you really get the most of your advertising campaigns and maximize your budget spend.
“this smart tech will improve the performance of your ads”
So how does Google Ads’ automated bid strategy help you to get the most out of your ad campaigns? Let’s take a look and find out.
Automated bid strategy
In a nutshell, smart bidding is a set of automated bid strategies in Google Ads that use machine learning to increase conversions.
Google looks at historical search behaviour and data to predict the likelihood of a conversion and then increases your bids when a conversion appears more likely.
Smart bidding uses data such as:
- User devices
- Historical performance
- Time of day
Along with the above crucial data, it also uses a wide range of other factors, depending on each query.
“smart bidding is a set of automated bid strategies in Google Ads
that use machine learning to maximize conversions.”
So let’s take a look below to find out five awesome ways this robust ad campaign strategy brings you the best results.
Five powerful optimization strategies
There are five different Smart Bidding strategies that each prioritize a specific conversion goal to take care of all the work for you.
- Maximizes conversions – Smart bidding in Google Ads optimizes bids to maximize conversions from your budget.
- Target ROAS – This Optimizes your bids to achieve your target return on ad spend known as ROAS from your budget.
- Target CPA – Can optimize bids to maintain your CPA or target cost-per-action from your budget
- Target impression share – Sets bids to show your ad at the top of the page as often as possible.
- Enhanced CPC – Optimises your maximum cost-per-click, in order to make the most out of your campaign and increase conversions.
“Sets bids to show your ad at the top of the page as often as possible.”
So now we’ve seen exactly how Google smart bids can make the most out of your ad budget, while also allowing you the freedom to concentrate on other important aspects of being an entrepreneur, let’s take a look below at some other important benefits.
Why use smart bidding in Google Ads?
- Saves time – Essentially, it all comes down to convenience. Smart Bidding takes care of bid optimization for you and this means you can “set and forget” campaigns. Google also has far more data to work with than you or any other single advertiser. This also gives you the opportunity to ‘set and forget your campaigns freeing up your time for other important elements of building your business, such as creating a digital presence for your brand or service
- Good for smaller businesses – As smart bidding can achieve “good enough” results quickly, it is useful to smaller businesses that may have a smaller ad budget. It’s no coincidence that we’re seeing a lot of automated Google Ads features being introduced for smaller businesses.
- Advanced performance reporting – AI bidding technology makes it easy to get a snapshot of your bid strategy status and performance. You can also easily create bidding experiments to see for yourself how strategy changes might impact performance. Forecasting capabilities illustrate how many conversions your ads might receive for different CPA targets.
- Customization – AI bidding allows you to select a targeted marketing goal to control how the algorithms make bidding decisions. It also allows you to customize performance control settings, including selecting the right attribution model for you.
- Advanced machine learning – Smart Bidding is able to understand how different bids might impact conversions. Machine learning algorithms are able to learn from data and a wide range of parameters to understand potential performance. This capacity goes far beyond what a regular PPC manager or even a team of data scientists could manage.
Set and forget’ your campaigns freeing up your time for the other
important elements of building your business
So there you have it! Some great reasons to harness the incredible power of Artificial Intelligence with the Google Ads Smart Bidding concept.
You can learn more details about smart bidding right on the support page of Google (a dryer read in our humble opinion) here.
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- & of course Digital advertising (including Google ads)
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From a start-up helping local small businesses, over a span of 5 years, Usman has built Web Worx Labs to be a leading provider of digital marketing solutions that employed 15+ full-time employees and had customers in over 30 countries.
Outside of work and his passion for all things digital, Usman is a proud father of three, loves running and is an avid reader.