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Smart Bidding in Google Adwords: Drastically Cut Down your Bid Management Time

Updated: May 19, 2020

How smart is your Search Engine Marketing | Episode 06

Transcription of Podcast:

Hello everyone. Welcome to this a second podcast on in this weekly series of How Smart is your Search Engine Marketing where we, so every week we take on different themes. So last week it was SEO, and this week it is Search Engine Marketing. And what we tried to do is discuss what are the ways in which you can make marketing and HR processes more intelligent by using the right tools and also the right features within these stewards.

So, today's topic is about smart bidding in Google AdWords. Let me just give you a quick background on this. Typically big management and Google AdWords takes an enormous amount of time, you know, so for example, if you're running a show business, you can imagine that you have so many brands, you could have a promotional campaign going on when you would want to get as many people interested for three or four days. You could be having high profitability on a certain brand. So. you would want to give a disproportionate budget to those keywords. You could see competition increasing or decreasing their bids. So accordingly, you have to react. So, bid management on a daily basis takes a chunk of time and, you know, sometimes we just wish that system could just understand your objective, then that's what smart bidding is all about.

Smart Bidding

Now how does smart bidding really operate from a fundamental level? So basically that, you know, the whole range of building signals. Right? So taking the case of the eCommerce site, which we just discussed, there could be a peep if the site is very mobile-friendly, you could see that, you know, on mobile, it's getting a good reset, good conversions. You could see they are variables like languages. You know, people from people losing certain languages may respond more to your ads. There's a variable around, there could be variable around the time of the day. A certain time of the day people could react better to your ads. Then there is a variable of creativity.

So all these, they are a wide range of bidding signals. You know, these are, things based on which, you can take the call on whether to increase or decrease the bid. And with the help of machine learning, what Google does, it's able to understand all these signals for your account and then take the right call.

Manual Bidding

So let's go through all the various types of smart buildings very quickly. We'll start with manual bidding, right? So that's, we just discussed the negatives of manual bidding and the fact that because there are so many objectives, and if you're running an eCommerce site, for example, there could be so many words, the keyword which makes manual bidding a tough, right? So the next step, the bidding we just closer to a manual building is called enhanced CPC. Now, it's very similar to manual building, but for one fact that the Google ads algorithm, you allow it to make an adjustment to the manually set keyword bid.

Google Ads Bid Strategies

Google ads will increase or decrease the bid for the keyword-based on whether or not the clicker leads to a sale. So as it sees a, if it sees us from a certain keyword that it's resulting in more sales, it will keep on increasing the bid. So the gap was limited to a 30% adjustment, an up or down, but now that gap has been removed and so if it gives Google ads the ability to adjust it to any level. So one must have an eye on what is actually happening at that point when you do enhance CPC.

Maximize Conversion

The next smart bidding type is Maximize Conversion, for some reason you may want to maximize the conversions of a certain brand for a month, for example. And so then you need to put all those keywords in a separate campaign and give the objective of maximizing conversion. So what it does is that it gets you as many conversions as possible without exceeding your budget per day. But now, both in enhance CPC and maximize conversions, remember that you will not be able to tell Google to restrict the keyword pricing. So that's the disadvantage. So if your goal is profitability, you can't be doing enhance CPC and maximize conversions. You have to be doing some other smart bidding techniques, which is Target Cost CPA also called Target Per Acquisition or otherwise, ROAS.

Now Ads spend, sorry. So coming back to the same Reebok example. Suppose you're making a low margin on a certain brand, say a Nike and you, you would not be able to afford. And you're not a funded company, you will not be able to afford, getting a certain sale, add more than X dollars. So hence, you will have to do a target, cost per acquisition. So that's what the costs back per acquisition is all about. It allows you to tell the system that you will not be able to afford an acquisition at a cost to, which is higher than say, X dollars.

Now, the thing about these profitability based smart building techniques that we spoke about a target CPA and return on ad spend is that you need to have enough data for the system to be able to make those calls with respect to what? Keywords to increase decrease so that your target is a CPA and that when you say enough data, typically it is.

One month or 45 days, you know, that's a big coverage. People gender you talk about, you know, then there are other building types, a smart building type. So one of them is called maximize clicks. So, for example, if you're running a very good offer for a week and you know that it's going to have a lot of takers, so then you do, the aim is to get as much traffic as possible, to your site. And hence, at that time, we will go over the maximize click, bidding. Then there's a newer smart building, techniques called target impression share. So you're a, there could be scenarios.

For example, if you're a big brand and for all your brand-related keywords, you want to be absolutely on top of the page. So then you can use this, a smart bidding technique and a, so under target impression share, you have options like the absolute top of the page, or anywhere on this page. So you can use this too, basically, tell the system what you are objective is. All right. So those were the various smart bidding types.

Now, the first question, you know, let's like usually do we know, let's end with some of the best practices. The first, best practice is that, remember, all of these you can use in your account simultaneously, and that's the human element. That's the insight because, at the end of the day, you are the person who's managing that account has to decide that, okay, for this particular campaign where we have a good offer, you know, for these brands, let's use the maximize click option or for this particular brand, the keywords, you know, which is in this campaign, the conversion at a cost more than X dollars. So let's do target CPA or, you know, I want to really maximize the conversions for this kind of shoe. So it's, it's really up to you to decide at what level. At what campaign for what campaigns do you need to do each of these billing types?

So that's it. And, you know, if you like, what we've been doing this week and last week, please be sure to subscribe to our podcast and we'll be soon back with more. Thank you.

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