Google AdWords Smart Bidding is a brand new feature that takes the rough estimation out of setting bids to meet your performance goals. Here we go through exactly what it is, as well as the benefits and limitations on offer with Smart Bidding.
What is it?
AdWords Smart Bidding is a subset of automated bid strategies that use machine learning to optimise for conversions or conversion value in every auction. Ultimately, it’s a brand new name for conversion-based automated bidding across AdWords.
The thing to really take note of his how clever Smart Bidding actually is. It utilises countless signals to continually refine models of your conversion performance to help you get more from your marketing budget. On top of this, Smart Bidding’s objective is to determine the optimal bid, and it evaluates patterns in your campaign structure, landing pages, ad text, product information, keyword phrases and many more.
The Benefits of Smart Bidding
There are many benefits that come with using AdWords Smart Bidding, due to its sheer intelligence. It can prove difficult when trying to ascertain how different bid amounts might affect conversions or conversion value, and Smart Bidding uses machine learning algorithms to help you make these decisions more accurate.
Smart Bidding also allows advertisers to factor in a range of qualitative data to their bid optimisations. This gives you information about a person or the context at the time of a particular auction. For example, information as to which device is being used is readily available through Smart Bidding.
Moving away from the feature’s intelligence, it’s important to mention the customisation that is available with Smart Bidding. It allows you to set performance targets and customise settings to your unique business goals. Eventually, you’ll even be able to set device-specific targets for mobile, desktop and tablet.
As well as all of the above, AdWords Smart Bidding offers reporting tools that give you deeper insight into your bidding performance and therefore allows you to rectify any issues. From bid simulators to campaign drafts and experiments, Smart Bidding gives you control over everything.
In the end, Smart Bidding will save you time as well as return on investment.
The Limitations of Smart Bidding
Apart from the fact that it may be signalling the inevitable rise of the machines, Smart Bidding does have one slight limitation.
Although it claims to be readily available for business of all sizes, it’s clear that to get truly accurate results you need to have had at least 30 conversions in the last 30 days. This isn’t Google’s way of picking on the little guy, and is solely to maximise results and to give the machine learning algorithms enough data to make informed bidding decisions.