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Google Ads Tutorials: Smart Bidding for Seasonal Times

Google Ads Tutorials: Smart Bidding for Seasonal Times

[light piano music] woman: Smart Bidding in Google Ads
leverages real-time bidding to help you stay competitive
during the holiday season. In this video, we’ll discuss
how to prepare your Smart Bidding for seasonal events that may cause
an increase in Website traffic or a change in conversion rates. It’s important to remember that Smart Bidding
can handle most seasonal events without the need
to make any manual adjustments within your account. However, there are cases in which you may
consider adjusting your Smart Bidding for seasonal events. These adjustments will be relevant to you
if you’ve set a Target CPA or Target ROAS for your Search or Display campaigns. We’ll cover the recommended action
for two scenarios– expecting a large traffic increase
to your Website… and expecting conversion rates
to drastically change. If you expect a large traffic increase
to your Website, you do not need to adjust
your Smart Bidding targets. The more volume, the better
for Smart Bidding. If you don’t expect conversion rates
to change drastically, Target CPA and Target ROAS
will remain the best way to achieve your cost-per-acquisition
and return-on-investment goals. Still, ensure that your campaign budget
isn’t capped in order to capture the full opportunity
of your campaign. If you note “limited by budget” in the status column
of the campaigns table, this means that your budget is lower
than the recommended daily budget. If you expect conversion rates to change, the recommended action depends on the type
of seasonal trend you’ll experience– a longer trend of three or more days or a short spike of 24 to 48 hours. When considering
how your conversion rates may change, it’s important to think
about your conversion lag. Conversion lag
is the typical amount of time that it takes for a click
to result in a conversion. On average, it takes
at least one conversion cycle for Smart Bidding to adjust
to performance changes that may result from seasonality
or promotions. Think about this conversion lag when considering whether
your seasonal trend is longer or shorter. During longer seasonal trends, it’s expected to see a sustained increase
or decrease in conversion rates. An example is if you experience
a gradual increase in your conversion rate
over the holiday season. For longer trends like this, your Smart Bidding
requires no immediate action since the shift in conversion rate
is gradual. Smart Bidding learns
from how behavior changes on a particular day of the week
in the past, so seasonality
due to day-of-the-week effects is explicitly accounted for. Also, when seasonal trends wind down,
Smart Bidding will recognize this shift and return to your regular performance
once the season period is over. You may experience a short spike
in conversion rates due to a seasonal event
like a Black Friday sale. A short spike is a one- to two-day event where you want to give the algorithm
more opportunity to take advantage of the seasonal event before the Google Ads system
recognizes the change in conversion rate. In most cases, no action is required, since Smart Bidding can handle
even these short-term scenarios as long as your budget is large enough
to account for the spike. If you know that conversion rates will dramatically change
during the short spike, you can change the target metric in accordance with the expected change
in conversion rate. Let’s demonstrate. If you expect your conversion rate
to increase from 2% to 4%, you can change the target metric
by the same factor. This means increasing
your Target CPA by 2… And Target ROAS by a half. This is recommended for short spikes so that the bid algorithm
does not still view the predicted conversion rate to be 2%. Keep in mind that these metric adjustments are not recommended
for Video or Shopping campaigns. To check if you need
to adjust Smart Bidding targets, review past seasonal events to understand
how conversion rates changed. If your campaign is new, we recommend using similar campaigns
in your account. If you decide to adjust
your Target CPA or Target ROAS, these adjustments should be made right when the campaign’s conversion rate
deviates from its usual average and then again when the spike is over
in order to get the algorithm back down to the normal Target CPA or Target ROAS
used in the campaign. If you have any questions
or for more information, please visit the Google Ads Help Center. For more step-by-step videos on Google Ads implementation
and optimization, check out Google Ads Tutorials. [light music]

4 thoughts on “Google Ads Tutorials: Smart Bidding for Seasonal Times

  1. If you expect conversion rate to increase from 2% to 4%, wouldn't your CPA decrease by half, not double? More sales, same spend = lower CPA.

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