What is automated bidding?Automated bidding is a type of technology used in online advertising to help businesses optimize their ad campaigns. Essentially, automated bidding is a tool that allows advertisers to set up rules or goals for their ads, and then let an algorithm automatically adjust their bids in real time to achieve those goals.
For example, let's say you're running an ad campaign on Google Ads to promote your online store. You might set a goal of getting as many clicks as possible within a certain budget. With automated bidding, you would set up a rule that tells the algorithm to adjust your bids to get the most clicks possible within your budget.
Automated bidding uses machine learning to analyze a variety of factors, such as audience demographics, ad placement, and competition, to determine the optimal bid for each ad auction. By doing this automatically, it saves time and effort for advertisers and allows them to focus on other aspects of their ad campaigns.
One of the biggest advantages of automated bidding is that it can lead to better results than manual bidding. Because the algorithm is constantly adjusting bids based on real-time data, it can optimize bids faster and more accurately than a human could. This can lead to better performance, such as higher click-through rates, lower cost per click, and better return on investment.
In this article, we will read about different business goals and automated bidding strategies.
Types of automated bid strategies and GoalsThere are several types of automated bidding strategies that advertisers can choose from depending on their goals and objectives. Here are some of the most common kinds of bidding strategies and their goals:
1. Target CPA (Cost Per Acquisition)This strategy automatically sets bids to achieve a specific cost-per-conversion goal. The algorithm adjusts bids based on the likelihood of conversion so that the advertiser can achieve their desired number of conversions while maintaining a set cost.
2. Target ROAS (Return on Ad Spend)This strategy automatically sets bids to achieve a specific return on ad spend goal. The algorithm adjusts bids based on the expected revenue generated by each click so that the advertiser can maximize their revenue while maintaining a specific level of profitability.
3. Increase ClicksThis strategy automatically sets bids to get as many clicks as possible within a set budget. The algorithm adjusts bids based on the likelihood of a click so that the advertiser can achieve the maximum number of clicks while staying within their budget.
4. Enhanced Cost Per Click (ECPC)This strategy automatically adjusts manual bids to maximize conversions. The algorithm increases bids for users who are more likely to convert and decreases bids for users who are less likely to convert
5. Maximize ConversionsThis strategy automatically sets bids to get the maximum number of conversions within a set budget. The algorithm adjusts bids based on the likelihood of conversion so that the advertiser can achieve the maximum number of conversions while staying within their budget.
6. Target Impression ShareThis strategy automatically sets bids to achieve a certain impression share for a given set of keywords. The algorithm adjusts bids based on the expected competition for a given keyword so that the advertiser can achieve the desired level of visibility for their ads.
Overall, these automated bidding strategies can help advertisers optimize their ad campaigns for their specific goals, whether it's maximizing conversions, achieving a set cost per acquisition, or maximizing their return on ad spend.
Steps to Create an automated bid strategyHere are the steps to create an automated bid strategy:
1. Log in to your advertising platform, such as Google Ads or Microsoft Advertising.
2. Navigate to the campaign that you want to create an automated bid strategy.
3. Click on the "Settings" tab.
4. Scroll down to the "Bidding" section and click on "Change bid strategy".
5. Select the type of automated bid strategy that you want to use. For example, if you want to use Target CPA, select that option.
6. Enter the target CPA or other relevant parameters, such as target ROAS or target impression share, depending on the strategy that you chose.
7. Set the bid strategy to apply to the entire campaign or to specific ad groups.
8. Choose the bid strategy's delivery method.
9. You can choose to use standard delivery, which will deliver your ads evenly over time, or accelerated delivery, which will deliver your ads as quickly as possible
10. Set any additional settings that you want to use for the bid strategy, such as bid adjustments for the device or location.
11. Click "Save" to apply the new automated bid strategy to your campaign or ad group.
After you've created the automated bid strategy, the platform's algorithm will automatically adjust your bids in real-time based on the goals and parameters that you set. It's important to monitor the performance of your campaign regularly to ensure that the bid strategy is achieving your desired results. If you're not seeing the results that you want, you may need to adjust the parameters or try a different bidding strategy.
How Smart Bidding Takes Automated Bidding for Search Campaigns to the Next LevelAutomated bidding has become an increasingly popular tool for managing online advertising campaigns, but Google's Smart Bidding takes it one step further. Smart Bidding is a set of automated bid strategies that use machine learning to optimize bids in real-time based on a range of signals, including user behavior and context. This approach allows advertisers to achieve better performance than traditional automated bidding and can be especially powerful for search campaigns where competition for ad space can be fierce.
To know more about how smart bidding works click here- >About smart bidding