Every time a new Google Ads user asks this question, “What are the main advantages of automatic bidding?”
Our industry is buzzing with automated bidding. Automated bidding is often discussed in publications, only to be immediately contradicted by blogs emphasizing the importance of not automating your bidding.
Actually, the answer isn’t that simple: It depends.
Automated bidding in Google Ads may be done in a number of ways. A few will do wonders for your profile, while others will do nothing but damage. Some bidding strategies may be applicable to your account, while others may be a waste of time. If you don’t grasp how each bidding method works, it’s difficult to know.
On Google Ads, it’s easy to spend a lot of time figuring out the best bidding strategy possible. Automated bidding by Google Ads is a key advantage in addressing this, but it extends well beyond time and money savings.
There are a number of ways to automate your bidding strategy, and I’ll go through each of them in detail in this post.
Automated Bidding Is A Feature Of Google Ads
To achieve your marketing objectives, you may use automated bidding in Google AdWords. When you use Google’s automated bidding, your ad’s bid value is determined by the possibility that your ad will be clicked on or converted. A variety of factors go into this process, such as a user’s device and operating system, as well as the time of day and demographics of the person doing the search.
A portfolio bid strategy is a basis for all of Google’s automated bidding techniques (an automated, goal-driven bid strategy that groups multiple campaigns, ad groups, and keywords). This implies that marketers may apply their selected approach to all of their campaigns, ad groups, and keywords. Some of these approaches are established practice (an ad strategy that can be used in single campaigns).
Automated bidding tries to address two of the most common issues faced by advertisers:
- In order to compete for eligible purchasers, their offers need to be at least as high as possible.
- As to whether or not their bids appear to folks who aren’t interested in purchasing the item.
There is no need to manually adjust bids for keywords or ad groups when bids are automatically updated. Automated bids are unique to each auction and established by the auction house (the bid will be different for every auction).
Using data from previous bids, automated bid strategies refine their techniques over time. Aside from their Universal App Campaigns, this performance demonstrates Google’s shift toward machine intelligence.
Despite the fact that machine learning may be used to automate the bidding process, there are certain downsides.
Things like current events, weather, or flash deals, for example, cannot be taken into consideration by this bidding approach. A manual bid setting may be required in this situation.
Finally, automatic bids are accessible for both Search and Display advertisements, depending on the bid strategy you are utilizing.
Is There A Set Of Automated Bidding Methods?
An automated bidding system compromises efficiency and control. Utilizing Google technology and proprietary data, automated bidding speeds up the bidding process while also saving time. However, with manual bidding, you are in complete control of your bids and may tailor them to your specific campaign at any time. As an example, you may tailor your bids for certain search terms or goods in Shopping. Bid modifications may also be made for location, time of day, device, and audience.
Core Benefits Of Google Ads Automated Bidding
Google Ads automated bidding’s fundamental benefit and additional perks will be examined in further detail after a brief review of the feature.
A Refresher On Google Ads Automated Bidding
You may set up automated bid adjustments in Google Ads depending on your objectives. With this tool, you can concentrate on other chores, freeing up your time for other things.
Google allows you to choose from six different bid techniques, each of which has a specific purpose.
- 1. Maximize The Number Of Clicks
The purpose of Maximize Clicks is to maximize the number of clicks you obtain while staying within your budget. Visitor numbers will rise as a result.
- 2. Boosted Conversion Rates
The bids generated by the maximize conversions approach are designed to get you as many conversions as possible while still staying within your budget. These tactics are ideal if you want to make the most of your marketing dollars while also boosting conversions.
- 3. Increase The Value Of Your Conversions
The value of your conversions will be maximized while remaining within your budget with the help of this method, which will automatically determine your bids. A cost-effective approach that yields higher conversion rates while staying within your budget.
- 4. Aim For A Certain Cpa
It is possible to boost conversions while maintaining your goal cost per action with the Target CPA automatic bidding method. When using this method, you should keep in mind that certain conversions may cost less or more than your aim. If you want to enhance your conversions without exceeding your CPA goal, use this method.
- 5. Percentage Of Shared Impressions Of The Target Audience
It is the goal of this method to have your ad appear at the top of the page, at the very top of a page, or anywhere in the list of Google search results. Your ultimate aim of increasing exposure may be achieved by using this strategy.
- 6. ROAS (Return On Advertising Spend)
In order to optimize conversions while maintaining the desired ROAS, you adjust your bids based on ROAS. Conversions over or below your goal return might be included in automated bidding using this method.
If you’re looking for unique value conversions and a specific ROAS objective, this automated bidding technique is for you.
Google’s smart bidding is another option for automatic bidding on their part. It adjusts your bids in each auction using powerful machine learning and a combination of Target ROAS, Target CPA, and Enhanced CPC.
It is possible to increase the number of people who visit your website in a cost-effective manner with the use of Google Ads automatic bidding. Automated bidding saves you the time and effort of manually inputting bids for different keywords. Instead, the system takes care of it for you automatically.
Aside from marketing and company operations, this frees up your time so you may concentrate on other critical responsibilities.
Examining The Additional Advantages Of Google Ads Automated Bidding
Other benefits of Google Ads’ automatic bidding go well beyond the main functionality. You’ll note that a lot of these advantages are linked to the main advantage.
- 1. You Don’t Have To Do A Thing Else
You don’t have to rely on your limited knowledge to figure out what bids to make if you use automatic bidding. The majority of newbies to Google Ads are just speculating. Google’s automated techniques, on the other hand, are based on data. Rather than just guessing, you don’t even have to perform the study that would otherwise be required to do so.
- 2. It Does Not Matter How Many People Are On Your Team
Automatic bidding in Google Ads allows even small businesses to profit from Google Ads, as it saves both time and resources. The bidding may be handled without adding a new member of your team.
- 3. Set A Timer And Forget About It
Automated bidding allows you to build up campaigns and then forget about them. Because you’ve taken one item off your team’s to-do list, you’ll save time and stress as a result. Despite this, you should still check in on your campaigns on a regular basis to see how they’re doing and make any necessary modifications.
- 4. Having The Power To Set Your Own Objectives
In addition, the fact that Google Ads automatic bidding provides six distinct tactics is a huge plus. There is a wide range of options available, making it a good fit for a wide range of businesses.
Why Automated Bidding In Google Ads Shouldn’t Be Ignored
In order to employ automatic bidding, bear in mind that you will lose some control. This may or may not be an issue, depending on your objectives and the amount of time you have to devote to tweaking campaigns and bids.
Automatic bidding in Google Ads can be worth reconsidering if you want to have more control over your bid amounts. In addition, you’ll have less knowledge at your disposal. Because you can’t adjust bids to observe how your results change, this is an inevitable side effect. Because you have no say in what Google bids on your behalf, you won’t know why; turning off automatic bidding in the future may be more difficult as a result.
Automatic bidding in Google Ads is still tremendously useful for many organizations, even with these warnings in mind.
With automatic bidding from Google Ads, you don’t have to put in any work or time to achieve your objectives. In this way, you may optimize your budget while allowing other members of your team to concentrate on other priorities. This, along with the six bid objectives or tactics that may be selected, makes automated bidding a smart marketing strategy for most firms.