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September 28, 2019

What are automated bidding strategies?

What are automated bidding strategies?

There are more than 3.5 billion Google searches every day. This means search engine marketing (SEM) is a great way to drive traffic.

In fact, Google Ads – the pay per click (PPC) marketing strategy by the search engine giant – is now more popular than ever. In 2018 alone, it generated revenues of $116.3 billion.

Despite all this, ensuring that your campaign pays off can be very difficult, considering all the factors that constantly affect it.

The solution? Automated bidding strategies to efficiently manage and optimise your ad campaigns.

Read on to understand all the benefits you can reap out of automating your Adwords bidding.

What Is Automated Bidding?

Simply put, this allows Google to automatically decide bid amounts for your ads – instead of you manually setting them.

But why is using automation more efficient than manual bidding?

If you own a small business and run one ad campaign at a time, using the standard – single campaign – strategy is a good choice.

However, most of these automated strategies are primarily portfolio bids. This means that advertisers who run multiple simultaneous campaigns can group their campaigns, keywords and ads into a portfolio and apply the same strategy to all.

When you let Google decide how much to pay for a search ad, it essentially uses all of the data it holds on its users to set your bids.

Its automated system can analyse information such as location, demographics and even search frequency to determine how many clicks and conversions your ad is likely to get. – If the numbers don’t look good, the automated bidding can help you save a lot of money.

This potentially answers two of the biggest questions that every marketer – even you – has had at some point:

  • Is my bid high enough to beat the competition and land buyers?
  • Am I over-bidding and attracting low-intent traffic?

What is better is that the system keeps analysing all incoming data to set your future bids with even more precision for better CTR and ROAS.

What we’re saying is, unlike manual bidding, you no longer have to keep track of all the analytics to update keywords and ad groups. Google will automatically calculate and set bids for your ads at every auction.

The Benefits Of Automated Bidding

While we’ve already discussed so many of the benefits that come with Google Ads’ automated bidding, here’s a breakdown.

Maximize Clicks

It automatically sets your bid to optimise the number of clicks you can possibly get within your budget.

Benefit: increased website traffic – CTR.

Target Impression Share

The goal of this bid automation is to show your ad at the top of Google’s SERPs. This too can be used for multiple campaigns as well as a standard strategy.

Benefit: increases ad visibility.

Target CPA

This strategy was previously called the ‘conversion optimiser’ which is an apt description of what it aims to do. This helps you to achieve maximum conversions at the cost per action (CPA) you set.

Benefit: helps maximise customer acquisition.

Target ROAS

This strategy is similar to Target CPA, but instead of optimising conversions, this tries to achieve your return on ad spend (ROAS) goal. This is done by increasing the conversion value.

Benefit: helps achieve the set ROAS.

With Google Ads’ automated bidding strategies, you can streamline your ad campaigns to be more efficient, cost effective and profitable. This can be done without having to manually keep track of your ad bids and overall campaigns.

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