In its most recent update, Google teaches marketers how to use ‘smart bidding’ from Google ads to their advantage. For those who are in the dark, smart bidding is considered as a subset of automated bid strategies that use machine learning to optimize for conversions. Some examples of this type of tool are: target CPA, target ROAS, maximize conversions and enhanced CPC.
Simply put, all these tools will give marketers a chance to reach more potential customers and open so many opportunities for their business. Though, a word of caution: even though the word ‘smart’ is attached to it, that doesn’t mean it doesn’t need a human being’s brain power and strategy.
Which is why Google, in their latest update, reminds us that there are these three steps you can take. These three crucial steps will make automated bidding tools work in your favor and you will be able to make use of their full potential once implemented.
Step # 1: Choose the right bidding strategy
First, you have to determine what your goal is for your campaign. Is it to increase conversion? Get a specific return on ad spend? Once you’ve determined this, you can go ahead and draw up your strategy.
Step #2: Wait
A lot of people make the mistake of not allowing enough waiting time for their strategy to be implemented. Running a performance analysis without letting the strategy marinate is one of the most common mistakes people make.
Remember, smart bidding algorithms will take a one week learning period generally. During this one week duration, try not to make too many changes to your campaign. Another noteworthy thing to do is to figure out the standard lag time for different types of conversions. Once you figure that out, then you will know how long you have to wait before running your analysis.
Step #3: Keep optimizing
Since the issue of manual bidding is now gone, you can use that time to get a lot more on the strategic side about your optimization. Maybe improve your landing page? Or perhaps, tweak your ad design or content every now and then.
It is pretty much wrong to assume that just because Google’s new tools are getting smarter, that us human beings won’t serve any more purpose — especially in the world of digital advertising. Just following these three simple steps will allow you to make full use of the benefits that smart bidding brings to the table.