{"id":112650,"date":"2022-09-12T16:52:09","date_gmt":"2022-09-12T16:52:09","guid":{"rendered":"https:\/\/www-dev.channeladvisor.com\/blog\/uncategorized-uk\/how-to-use-automation-for-google-success-2\/"},"modified":"2023-12-15T19:37:15","modified_gmt":"2023-12-15T19:37:15","slug":"how-to-use-automation-for-google-success-2","status":"publish","type":"post","link":"https:\/\/old.rithum.com\/uk\/blog\/how-to-use-automation-for-google-success-2\/","title":{"rendered":"What Is Google Smart Bidding?"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Do we hear \u00a35? \u00a310?\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you\u2019re new to Google Smart Bidding, you may be just as confused as a first-timer at an auction house.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">On Google, your ability to master keyword bids has a huge influence on your ad visibility, as well as the level of interaction you receive for each query. The dynamic nature of search auctions means the right bid is usually a moving target that simply can\u2019t be reached at scale. Bid incorrectly, and you could miss out on a mountain of valuable conversions.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With so many influences affecting online ad bids, identifying the best strategy and price for each keyword can be incredibly difficult.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Google provided an answer to this challenge in 2016 when it created Smart Bidding, using automation and machine learning to deliver the right ad to the right consumer at the right moment.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Let\u2019s take a look at the benefits of Google Smart Bidding and how you can use it to supercharge your online ad strategy.<\/span><\/p>\n<h2><b>What Is Google Smart Bidding?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">According to <\/span><a href=\"https:\/\/support.google.com\/google-ads\/answer\/7065882?hl=en\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Google<\/span><\/a><span style=\"font-weight: 400;\">, \u201cSmart Bidding refers to bid strategies that use machine learning to optimise conversions or conversion value in each and every auction \u2014 a feature known as \u2018auction-time bidding.\u2019\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In plain English, Smart Bidding is an online advertising strategy that uses automated intelligence to:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Review historical search behavior<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Predict the likelihood of a conversion<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Increase your bids when conversion is more likely<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">In an instant, Google can evaluate a number of data signals for each auction to set the optimal bid. The signals Google reviews to make these decisions include a number of contextual clues, such as a user\u2019s location, the time of day, your ad\u2019s historical performance, the user\u2019s device type and more.\u00a0<\/span><\/p>\n<p><iframe title=\"Google Ads Tutorials: Intro to Smart Bidding\" src=\"https:\/\/www.youtube.com\/embed\/xNUSRL5kbYg\" width=\"1280\" height=\"720\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<h2><b>How Google Smart Bidding Works<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Google Smart Bidding employs five different strategies to help you achieve certain ad goals. To use these, you must already have conversion tracking set up in your Google Ads account. However, you do not need any historical data to get started since Google uses contextual signals to make the best decisions.\u00a0<\/span><\/p>\n<h3><b>Maximise Conversions<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Get the most conversions while spending within your budget. On this setting, Google will prioritise ads that are more likely to lead to customer conversion. However, it might maximise your bids to get you there, potentially eating through your daily budget faster.\u00a0<\/span><\/p>\n<h3><b>Maximise Conversion Value<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Conversion value is the amount a converted customer spends. Under this model, Google prioritises ads for you that are more likely to generate value.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Google accomplishes this by reviewing your revenue metrics. Like the Maximise Conversions strategy, you may also run out of budget early if Google prioritizes ads that result in high-spend conversions.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Both Maximise Conversions and Maximise Conversion Value are ideal strategies for companies that do not have a specific cost per acquisition goal in mind. However, they are not ideal for those who are closely watching their budget.\u00a0<\/span><\/p>\n<h3><b>Target Cost Per Action (CPA)<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Target CPA allows you to gather as many conversions as possible at the target cost you set (or average amount you want to pay). Google does this by evaluating your past conversion data so you don\u2019t have to pay for clicks that aren\u2019t profitable. Some conversions may be higher than your target, while others are lower, but Google prioritises staying below the target CPA you set.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The system may even recommend a target CPA based on this data when you\u2019re setting up the campaign.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">By maxing out conversions at a price point you set, this strategy could be the best of both worlds. Just remember: if you set your target too low, you may miss out on more conversions.\u00a0<\/span><\/p>\n<h3><b>Target Return on Ad Spend (ROAS)<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Bid based on a target ROAS you set (or the average conversion value you\u2019d like to receive for every pound you spend on ads). Under this model, Google attempts to predict your future conversions and the value of each. It then sets a maximum cost per conversion (CPC) to optimise your returns.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Note: You must have at least 15 conversions in the past 30 days to use the Target ROAS strategy.\u00a0<\/span><\/p>\n<h3><b>Maximise Clicks<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">If you simply want to increase web traffic or visitors, the Maximise Clicks strategy funnels as many clicks to your campaigns as possible for the target amount you set. If you don\u2019t set a target spend amount, the system will use your remaining daily ad budget.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As with Maximise Conversions or Conversion Value, be on the lookout for a deteriorating budget, as Google Ads can use up your daily allotment for the sake of clicks.<\/span><\/p>\n<h3><b><i>A Note on the Learning Period<\/i><\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Does it seem like your Google Smart Bidding strategy isn\u2019t running the way you anticipated? It\u2019s important that you don\u2019t analyse your results too early. That\u2019s because machines need time to learn and adjust. Google recommends the following timeline:<\/span><b><\/b><\/p>\n<ol>\n<li aria-level=\"1\"><b>Implement Smart Bidding<\/b><span style=\"font-weight: 400;\"> \u2014 Choose the strategy that works for you, and limit changes\u00a0 like budget modifications or keyword additions after you set it up. <\/span><\/li>\n<li aria-level=\"1\"><b>Allow the bidding model to learn<\/b><span style=\"font-weight: 400;\"> \u2014 It typically takes one to two weeks for Google to adjust to a new bidding strategy. During this time, Google gathers the performance data it needs to optimise your bids.\u00a0<\/span><\/li>\n<li aria-level=\"1\"><b>Wait for the post-control period<\/b><span style=\"font-weight: 400;\"> \u2014 Once Google completes the learning period, it enters a two- to four-week post-control period.\u00a0<\/span><\/li>\n<li aria-level=\"1\"><b>Consider the conversion time lag<\/b><span style=\"font-weight: 400;\"> \u2014 Considering most clicks don\u2019t immediately result in conversions, give your campaign time to work across channels and devices.\u00a0\u00a0<\/span><\/li>\n<li aria-level=\"1\"><b>Evaluate performance<\/b><span style=\"font-weight: 400;\"> \u2014 Analyse your performance once you\u2019ve given your campaigns sufficient time to learn.\u00a0<\/span><\/li>\n<\/ol>\n<h2><b>Who Is Google Smart Bidding For?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Google Smart Bidding can optimise campaigns for small, mid-sized and enterprise businesses alike. The service works for both search and display ads \u2014 and they don\u2019t have to be existing either. Smart Bidding evaluates data from all of your campaigns and other signals, so even new campaigns can demonstrate performance.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Be sure to familiarise yourself with these signals so you can determine whether Smart Bidding is right for you:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Device<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Physical location<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Location intent<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Weekday &amp; time of day<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Remarketing list<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Ad characteristics<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Interface language<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Browser<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Operating system<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Actual search query (Search and shopping)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Search Network partner (Search only)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Web placement (Display only)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Site behavior (Display only)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Product attributes (Shopping only)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Hotel and itinerary attributes (Hotels only)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Mobile app ratings (Coming soon)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Price competitiveness (Shopping and hotels only)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Seasonality (Shopping only)<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Check out Google\u2019s description for each signal, as well as an example for each <\/span><a href=\"https:\/\/support.google.com\/google-ads\/answer\/7065882?hl=en#zippy=%2Cautomated-bidding-signals\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">here<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<h2><b>The Benefits of Google Smart Bidding<\/b><\/h2>\n<h3><b>Simpler Campaign Management<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Google Smart Bidding allows you to \u201cset it and forget it\u201d when it comes to achieving your conversion, click or ad spend goals. Instead of manually monitoring and bidding on individual keywords, Google\u2019s highly sophisticated algorithms do it for you.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">And because Google bids on each search query, campaigns with broad search terms can perform just as well as campaigns with exact keyword matches. That means smaller advertisers have just as much chance of winning despite smaller budgets or less sophisticated ad programs.\u00a0<\/span><\/p>\n<h3><b>More Control Over Contextual Signals<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">There\u2019s no need to make assumptions or draw your own conclusions. Google has way more data than you do, making its predictions and recommendations more accurate than you could ever achieve manually.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Nonetheless, auction-time bidding gives you great control over the wide range of signals to optimise your bids.\u00a0<\/span><\/p>\n<h2><b>Rithum Helps Optimise Your Google Smart Bidding Campaigns<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Rithum provides necessary expertise to brands and retailers to drive long-term growth with their Google Ads and stay ahead of the fast-changing e-commerce landscape. In fact, Rithum is part of a select group of <\/span><a href=\"https:\/\/www.rithum.com\/about\/newsroom\/rithum-named-among-top-2022-google-premier-partners\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Premier Partners<\/span><\/a><span style=\"font-weight: 400;\"> in the Google Partners program.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Need help understanding the ins and outs of Google Smart Bidding? Want an ironclad strategy that accounts for all of your key performance indicators (KPIs) and budgetary needs? Rithum Managed Services has the insight and hands-on expertise to help you win more bids.\u00a0<\/span><\/p>\n<p><a href=\"https:\/\/www.rithum.com\/uk\/request-a-demo\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Contact us today<\/span><\/a><span style=\"font-weight: 400;\"> to learn how <\/span><a href=\"https:\/\/www.rithum.com\/uk\/managed-services\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Rithum Managed Services<\/span><\/a><span style=\"font-weight: 400;\"> can help optimize your Google ad campaigns for the highest return.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><em>Editor\u2019s note: This blog post was originally published in May 2020 and was updated in September 2022 for accuracy and comprehensiveness.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Do we hear \u00a35? \u00a310?\u00a0 If you\u2019re new to Google Smart Bidding, you may be just as confused as a first-timer at an auction house.\u00a0 On Google, your ability to master keyword bids has a huge influence on your ad visibility, as well as the level of interaction you receive for each query. The dynamic [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":111614,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"tags":[10458,8622,12948,12949],"asset-type":[13745],"audience":[13408,13411],"bio":[14209],"topic":[6681],"class_list":["post-112650","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","tag-digital-marketing-uk","tag-google-uk","tag-google-smart-bidding-uk","tag-smart-shopping-uk","asset-type-blog-uk","audience-brands-suppliers-uk","audience-retailers-uk","bio-rithum-team-uk","topic-digital-marketing-uk"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.3.1 (Yoast SEO v27.5) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>What Is Google Smart Bidding? - Rithum<\/title>\n<meta name=\"description\" content=\"Learn how Google Smart bidding works and how it can drive 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