Here you can see the best new feature in Google Ads. It may help you to improve the Google Ads Campaigns.
Online PR News – 12-September-2019 – Texas, Houston – On August 21, the Smart Bidding feature received an update that included a new type of bidding strategy: maximize conversion value. This leverages the automated Smart Bidding feature of Google Ads to reach the maximum total conversion value possible with the budget that you've set.
This change was originally announced at Google Marketing Live in May. Now, it is officially live and available to all Google Ads users.
This discussion will explore the Smart Bidding feature and how this new bidding strategy will affect the tool.
What Is Smart Bidding with Maximum Conversion Value
Google defines their Smart Bidding feature as, "a subset of automated bid strategies that use machine learning to optimize for conversions or conversion value in each and every auction."
This "auction-time bidding" capability is a very potent aspect that has helped Smart Bidding become an incredibly popular and beneficial tool.
It works by analyzing your historical campaign data, as well as contextual signals available at the time of the auction, to calculate an optimal bid that will yield the maximum conversion value possible.
To simplify, Smart Bidding with the maximum conversion value strategy will aim to target only the conversions that will provide the most value, within your set budget.
You may get fewer conversions than before, but each conversion will hold a higher value.
Before Switching To Maximum Conversion Value Bid Strategy
First, take a look at your daily budget and see how much of that budget you are using each day. If you're typically spending much less than your daily budget, be prepared for this to change.
Again, the maximum conversion value bid strategy aims to use your total daily budget. So, don't be surprised if you see a spike in ad spend.
Next, it's a good idea to take a snapshot of your campaigns before changing your bidding strategy. This will help you assess whether or not the switch was the right decision.
If you have a desired ROI objective for the campaign, or a return on ad spend goal, then you'll want to be sure that you set a target return on ad spend.
Set Conversion Values versus Transaction-Specific Values
Before changing to this style of Smart Bidding, Google will also request that you've either set conversion values for each action, or entered transaction-specific values. Here's a breakdown of what they are asking.
When you set a conversion action (buying, subscribing, downloading, etc.), Google Ads asks what's the value of this activity. These are your conversion values. This will allow Google to calculate your total conversion values and represent the number with the right currency.
Alternatively, you can setup transaction-specific values. This requires you to add a snippet of code to certain web pages, which will send data to Google when a user converts. The idea here is that not all conversions are worth the same.
For example, one customer may decide to purchase $50 worth of items, while the next customer spends $100. The second conversion holds more value.
Transaction-specific values allow Google to calculate a more exact conversion value, rather than relying on an average conversion value. The transaction-specific route produces a much more accurate ROI.
Benefits of Smart Bidding
If you're new to the concept of Google's Smart Bidding feature or are still holding true to manual bidding strategies, let's quickly address some of the advantages that automated bidding provides.
Smart Bidding Is Smarter and Faster Than You and Your Team
We're not trying to insult you, honest. But, the truth is that it is impossible for you and your team to analyze data at nearly the same scale as the machine learning brain of Smart Bidding.
PPC campaigns create data at mythic proportions. And, each campaign is affected by a huge array of factors. If you want to make smart, accurate and impactful decisions about how to adjust bid amounts, then you need a learning algorithm capable of scouring all this data and extracting the right conclusions.
More Contextual Signals for Better Bid Optimization
Advertisers adjust their strategies based on contextual signals. These are identifying characteristics about a search user. In manual bidding, we're limited to only a handful, like device type, location and our remarketing list.
Smart Bidding, on the other hand, also uses signals like the user's operating system, browser, user demographics and much, much more. And, the system is able to combine multiple signals to really gain a full picture of the user and optimize bids accordingly.
Set Goals and Better Understand What's Working
Smart Bidding offers users a number of different goal-setting options and reporting features that really provide you with control and vision of your campaigns.
You can set performance targets that align with your organizational goals. You can even set goals based on different device types (mobile versus desktop).
As your campaigns start running, you can check the status of your bid strategy to make sure everything is working as intended. You'll even receive alerts that notify you of issues and provide steps to resolve the problems.
Smart Bidding will also supply forecasting reports that show how your ads would perform with a different CPC target or higher budget.
You're always able to have a complete view of your bids and strategies, even if you aren't manually adjusting.
Does It Really Work?
Google provides one example of how the maximize conversion value bidding strategy has paid off for one of its users. A Canada-based t-shirt company specializing in custom prints was able to secure a 283% higher conversion value and a 286% increase in ROAS when changing from manual bidding to the maximum conversion value strategy.
Still to Come...
When Google announced this bidding strategy at its GML event in May, they also promised to give Google Ads users more freedom in valuing to their conversion actions.
This soon-to-come update will allow advertisers to adjust conversion values based on location, device type, and other signals.
This will impact Smart Bidding and the maximum conversion value bidding strategy, so be sure to keep your eyes and ears peeled for the latest updates to Google Ads.