April 7, 2020

Smart Bidding: How to Use Smart Bidding to Create Killer Ad Campaigns

Your Google Ad campaigns just got a whole
lot smarter with…drumroll please…smart bidding! I’m not being over dramatic. It’s definitely something to get excited
about. Stay tuned to learn what smart bidding is
and how it can help optimize your Google Ads campaigns. What is smart bidding? Smart bidding is a digital advertising tool
from Google Ads that uses machine learning and campaign and user data to optimize your
ad campaigns so you can meet your business goals. With smart bidding, you choose a bidding strategy
specifically designed to achieve your business goals and get the best return-on-investment
for your strategy. One study said that digital marketers spend
80% of their time on manual bidding, and 20% actually strategizing. With smart bidding, you’re cutting out the
manual bidding and giving yourself more time to work on an effective strategy for your
business. As your ad campaign runs, Google learns more
about it and can make adjustments in real-time as needed based on the goals you set. So if your goal is to get people to make a
purchase from your ad, you can use smart bidding to get as many purchases as possible for your
budget. Smart bidding vs. manual bidding Smart bidding is automated. So, unlike manual bidding, once it’s set
up, smart bidding will look at different signals from users, like their device and language,
along with any campaign data, and make the bidding decisions for you. In the old days of manual bidding, you had
to adjust bids based on your own research. Once you did your research and placed your
bid, you had to manually monitor your campaign’s performance and look for ways to increase
its effectiveness. You would be responsible for making adjustments
to your campaign so that it gets you results—all while trying to stay under budget. And balancing the other responsibilities of
your business. Not to mention, it’s likely that you’ll
be running multiple campaigns at once, so you’d have to repeat the process for however
many campaigns you want to run. With smart bidding, you don’t spend hours
trying to fine tune bids for your ads. You set goals for your campaigns and let Google
Ads make the best of your investment. How do you set up smart bidding? You set up smart bidding in your Google Ads
account. You should also make sure you have conversion
tracking set up for your account. There are a number of different smart bidding
strategies to choose from, and I’ll explain a few of them. Target cost-per-action or target CPA lets
you choose how much you think a conversion is worth. Once you set the target CPA with smart bidding,
Google Ads will use its data to make the best bids to achieve that goal. Similarly, with target return on ad spend
or target ROAS you tell Google Ads what you want your return on ad spend to be, and then
it works to get you the best results for your goal. Both target CPA and target ROAS require you
to have a specific number in mind. If you don’t have a specific goal in mind,
you can choose to maximize conversions or conversion value with your smart bidding strategy. Maximize conversions aims to convert as many
people as possible with your given budget. With Maximize conversion value, you tell Google
Ads that you want the best value for your business from your campaigns, and you want
it within your budget. The value depends on overall goals for your
business, like revenue or profit margin. Let’s look at a smart bidding example. You run an ecommerce business that sells watches. You’ve done some math and determined that
you have a target CPA of $4. So you can enter that into Google Ads when
setting up a smart bidding strategy. Now let’s switch it up a bit. Maybe your watch business is running a digital
ad campaign for the first time and doesn’t have any specific conversion benchmarks. You just have the goal of getting people to
buy a watch after seeing your ad. So, instead of entering the cost-per-action
or ROAS, you choose to maximize conversions. Google will take a lot of different signals
and put them together to form the best and smartest bid strategy so you can convert searchers
to customers. Why should you use smart bidding for your
business? Have you heard the phrase, “work smarter,
not harder?” Well, that’s what smart bidding helps you
do. You don’t have to set bids manually for
every keyword you want to target and hope to get great value. You just have to know your business goals
and let Google Ads do the bidding for you. You’re using your business’s resources
efficiently, and you have the data to prove it. Are you using smart bidding with your Google
Ads campaigns? Let us know what you think in the comments! And as always, don’t forget to subscribe
to our YouTube channel and check out our blog for the latest in digital marketing. See you next time!

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