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Google Ads Tutorials: Intro to Smart Bidding

Google Ads Tutorials: Intro to Smart Bidding

[light music] Google Ads gives you several
ways to bid for your ads, depending on what matters
most to you and your business. Smart Bidding strategies take the heavy-lifting
and guesswork out of settings bids in Google Ads. When Google Ads first launched,
bidding was very manual. You would set separate bids for
individual keywords or placements. Then mobile devices came along, which created
more signals that needed to be accounted for like device type, location,
time, and day of the week. Today, there are more signals than ever before.
Imagine trying to consider all of these at once. The human brain couldn’t possibly
cope with all of these signals. This is the benefit of Smart Bidding. It considers billions of signals to set
the right bid for each and every auction. You then spend less time on manual tasks
and more time on strategic efforts, while allowing Smart Bidding to achieve
your business’s marketing goals. In this video, you’ll learn about choosing the
right Smart Bidding strategy for your business. There are four Smart Bidding
strategies that we’ll review: Maximize conversions, Maximize conversion value, Target CPA, and Target ROAS. All of these Smart Bidding strategies
use machine learning to optimize for conversions or conversion value. To use these bid strategies, you must already have conversion
tracking set up in your account. The best part of many of these
strategies is that they don’t require any conversion history to start. This means you can use Smart
Bidding on a brand new campaign. Maximize conversions automatically sets
bids to help you get the most conversions for your campaign while
spending within your budget. Similarly, Maximize conversion value, helps you get as much conversion
value as possible within your budget. Keep in mind that in order to
be able to use this bid strategy, you need to be tracking conversion value. These are good options if you do not
have a specific cost-per-acquisition goal, or if your campaign has zero
to little conversion volume. Even if you’re just starting out on Google Ads, these bidding strategies do not
require any historical conversion data. Target CPA sets bids to help you get
as many conversions as possible at the target cost-per-acquisition you set. Your Target CPA is the average amount
you’d like to pay for a conversion. Like Maximize conversions, Target CPA does not require your
account to have any conversion history. The Target CPA you set may influence
the number of conversions you get. Setting a target that is too low for example, may cause you to forgo clicks
that could result in conversions. If your campaign has enough
historical conversion data, Google Ads might recommend a
Target CPA during campaign creation. This recommendation is calculated based on your
actual CPA performance over the last few weeks. Keep in mind that Target CPA is best for
campaigns that are not budget constrained, since the system wouldn’t be able to
provide as much volume as possible. Lastly, Target ROAS lets you bid
based on a target return on ad spend. Your target ROAS is the average conversion value
you’d like to get for each dollar you spend on ads. Before you can apply a Target ROAS
bid strategy to your campaign, you’ll need to set up conversion value tracking. This can either be dynamic
conversion value tracking, which is the price that you sell
products at on your website, or a specific value you choose
to assign to a conversion. For example, let’s say you’re measuring
sales for your online shoe store and want to gain $5 worth of sales,
for each $1 you spend on ads. The goal of $5 per sale is your conversion
value, so you’d set a target ROAS of 500%. This means for every $1 you spend on ads,
you’d like to get 5 times that in revenue. To use Target ROAS bidding for Search,
you must have at least 15 conversions in the past 30 days. Like Target CPA, you should not
choose a ROAS goal that is too high. This can cause you to miss out on valuable
conversions, or your ads to not show at all. If you’re new to Google Ads, consider starting
your campaigns on Maximize conversions or Maximize conversion value, and then switching over to Target CPA or
Target ROAS once you have a goal in mind. If you’re unsure which Smart
Bidding strategy to use, you can use the Recommendations
page in Google Ads to automatically learn which
bidding strategy is a good fit. You can then apply a Smart Bidding strategy
directly through the Recommendations page. Alternatively, navigate to the Campaigns tab. Select the campaign whose bid
strategy you would like to change. Click ‘Edit’ and then ‘Change bid strategy’. Once you apply a Smart Bidding strategy, it’s important not to evaluate
your performance too early. Smart Bidding needs a learning period
to gather the performance data it needs to optimize your bids. You should also consider your
standard Time Lag for conversions. This is the average time it takes for a
click to result in an online conversion. Factor this amount of time
into the waiting period to ensure you’re gauging
conversion performance accurately. You can learn if your campaign is in the
learning period through the bid strategy report.>From the Campaigns tab, use the Bid strategy
type column to access the bid strategy report. View the campaign’s bid strategy
status at the top of the report. This campaign is currently
in the learning period. You can also find your conversion delay in the
report by looking into the performance chart. It typically takes one to two weeks
for a bid strategy to adjust, although this largely depends
on the volume of conversions. Smart Bidding should work for all campaigns, but ramp up tends to be faster
when there’s more conversion volume. When a bid strategy is in the learning period, limit major changes to the
campaign as much as possible. For example, avoid budget changes, major
keyword additions, and landing page swaps. This is because the bid strategy is
currently adjusting to the campaign set up. Starting your Google Ads campaigns with Smart
Bidding strategies is a good choice for both big and small businesses, and works
well with a simple account structure. Smart Bidding can help you save time, which will allow you to focus on
more strategic areas of your business. Now that you know about Smart Bidding,
it’s time to learn about opti-score and the Recommendations page. [music continues]

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