One of the main components of a successful Google Ads campaign is your bidding strategy. With Google Ads automated bidding strategies, you can get the best conversion results for your budget. In this article, we will discuss the core benefits of using automated bidding strategies on Google Ads.
Core Benefit of Google Ads Automated Bidding
Auction-time bidding is the main benefit you get when you choose automated bidding strategies. It’s impossible to adjust every bid perfectly when you are bidding on hundreds or even thousands of keywords. Let Google Ads do the heavy lifting by utilizing a smart bidding strategy.
What is an Automated Bidding Strategy?
An automated bidding strategy is a feature in Google Ads that allows the platform to automatically adjust bids based on specific campaign goals and objectives, using real-time data-driven insights and machine learning algorithms. All 7 automated bidding strategies are listed below.
7 Types of Automated Bidding Strategies
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In the past, you would use Manual CPC and set your bids for an Ad Group or for the individual keywords you are targeting. However, you should utilize automated bidding strategies to improve your overall results. Whether you want conversions, clicks, or awareness, the bid strategies below will be helpful for you. They are not listed in a specific order and you should test them until you find the ideal fit for your goals and your budget.
Video: Google Ads Automated Bidding Strategies
You can watch the video embedded below or watch it directly on YouTube.
- Maximize Conversions:
The goal is to get the highest number of conversions possible based on your targeting and your budget. The maximize conversions bid strategy is best for advertisers when every conversion is worth the same amount, such as leads or phone calls.
- Maximize Conversion Value:
The goal is to get the highest value (revenue) return from your budget. The maximize conversion value bid strategy is best for advertisers that sell different products or service levels and every conversion is not worth the same amount.
- Maximize Clicks:
If your goal is website traffic or clicks, this bidding strategy will drive the most amount of clicks within your budget.
- Target CPA (Cost per Acquisition):
The goal is to drive as many conversions as possible within a target that you set. For example, if you sell a $300 course, you can set a goal of driving as many conversions within your budget for less than $100 per conversion. It’s the best bid strategy for advertisers who prioritize acquiring new customers at a profitable cost.
- Target ROAS (Return on Ad Spend):
The goal is to drive as much revenue (or profit) as possible based on your budget. It is best for advertisers who want to increase their conversion value and drive a certain percentage for their ROAS.
- Enhanced CPC (Cost per Click):
If you still want to set your bids but you also want an automated bidding strategy, Enhanced CPC is the choice for you. Google Ads will automatically adjust the bids you set for clicks that are more likely to lead to a conversion.
- Target Impression Share:
This strategy focuses on achieving a specific impression share percentage in the search results. It’s ideal for advertisers who want to maintain high visibility for specific keywords or search terms.
7 More Benefits of Automated Bidding Strategies for Google Ads Campaigns
Some of the main benefits are listed below. Basically, you can get more out of your budget and efficiently manage campaigns. You can drive more sales and waste less advertising budget.
- Save Time With More Efficient Google Ads Management
Before automated bidding, I use to monitor thousands of keywords manually. It was a very difficult process trying to increase or decrease bids to improve my Return on Ad Spend (ROAS). Automated bidding strategies streamline the bidding process by automatically adjusting bids based on data-driven insights. This saves you time so you can focus on improving your advertisements and your landing pages.
- Accurate Data Analysis
Google Ads knows who is most likely to convert based on their demographics, location, browsing history, and their search phrase. Google Ads automated bidding strategies can utilize historical data to make informed bidding decisions. By leveraging data analysis and current trends, these strategies ensure that your ads are optimally positioned for conversions.
- Real-Time Data
Another advantage of automated bidding strategies is their use of real-time data. This enables these strategies to make quick adjustments to bids, ensuring your ads remain competitive and relevant in the constantly changing ad auction environment.
- Lower Costs for Conversions
Automated bidding strategies help lower advertising costs by finding the optimal bid amount for your campaign goals. These strategies ensure you are not overspending on bids, ultimately maximizing your cost per conversion.
- Optimized Targeting Performance
One of the main benefits of automated bidding is that Google Ads will focus on targeting that converts. If you are targeting 10 audiences for example, Google Ads will focus on the audiences that are driving the best ROAS.
- Portfolio Bid Strategies
You can create your own bid strategies and apply them to 1 campaign or multiple campaigns within your account. Therefore, you can make the most of your budget even if you are running multiple campaign types. You can also create a strategy that aligns with the objectives of your business and to improve your customer acquisition costs.
- Multiple Strategies
Google Ads offers a variety of automated bidding strategies to choose from. Each strategy serves a unique purpose and can be used for different campaign objectives allowing you to reach your goals easier.
If you can incorporate automation in your advertising that is a great thing for businesses and advertisers. If you are managing multiple clients or a large account, try to find the best automated bidding strategy for you. First, start with conversion tracking and then use Target ROAS, Target CPA, Maximize Conversions, or Maximize Conversion Value to get the most out of your budget. Your competitors are most likely using an automated bidding strategy and you will not optimize your campaign better with a manual strategy.