We all feel the strain of balancing personal and professional duties while navigating a pandemic. It can feel like we’re constantly running a marathon, desperately seeking an extra boost to reach the finish line.

We each cope with these daily “marathons” in our own ways, often turning to technology for solutions. This holds true for marketing and advertising as well. This post will explore how automated bidding can provide the extra push your business needs to excel in the competitive world of Google Ads. We’ll delve into:

• The definition, mechanics, and ideal scenarios for automated bidding.
• The advantages of Google’s automated and Smart Bidding features.
• How nexus-security Advisor’s “Optimize Bids” alert can help you implement these strategies effectively.

Understanding Automated Bidding

Google’s automated bidding strategies not only simplify bid management but also help you achieve crucial marketing objectives while keeping your Google Ads costs in check. Before we explore how these strategies can elevate your business, let’s establish a solid foundation. Google Ads defines automated bidding as “a bid strategy that automatically sets bids for your ads based on their likelihood of generating clicks or conversions. Each type of automated bid strategy is tailored to help you achieve specific business objectives.”

Adapted from Google’s more comprehensive automated bidding breakdown.

Note: Enhanced CPC is excluded from the above visual because it is not a fully automated bidding strategy.

Addressing Common Concerns About Automated Bidding

Google’s definition sounds promising, but some advertisers hesitate to relinquish control of their bids. This is just one of many reservations businesses have about adopting Google automated bidding. Let’s tackle some of these common concerns.

1. Can a computer truly manage my bidding effectively?

Manually managing keyword bids is time-consuming. It requires continuous monitoring, analysis, and adjustments – practically a full-time job! It’s natural to question whether a computer can replicate this intricate process effectively. However, as we’ll discover, computers can be equally adept at optimizing bids, and often significantly faster.

2. Isn’t automated bidding a new and untested concept?

Contrary to popular belief, automated bidding is not a recent development in online advertising! Its origins can be traced back to 2010. For over a decade, Google has dedicated substantial resources to refining its automated bidding algorithms. You can be confident that these algorithms are now sophisticated enough to identify areas for improvement, execute optimizations, and deliver results – all in a fraction of the time it would take manually.

Free guide >> PPC 101: The Beginner’s Guide to PPC

3. Can automated bidding really boost my conversions?

In short, yes! While some Google automated bidding strategies focus on increasing website traffic (Maximize Clicks) or visibility (Target Impression Share), others, like Smart Bidding, are conversion-driven. Introduced in 2016, Smart Bidding is Google’s advanced approach to conversion-based bidding. Here are some of its strategies:

• Enhanced Cost Per Click
• Maximize Conversions
• Maximize Conversion Value
• Target CPA
• Target ROAS

Unsure about the best strategy for your campaign goals? Our bidding strategies guide can help. Since their launch, these Smart Bidding strategies have undergone numerous refinements, making the underlying machine learning more effective than ever.

4. What makes Smart Bidding so effective?

Understanding the key factors these algorithms consider reveals the intelligence behind Smart Bidding. Google Ads explains that smart bidding optimizes for conversions or conversion values in real-time for every single auction, a process known as “auction-time bidding.”

Auction-time bidding This means the system processes massive amounts of data incredibly fast, taking into account a vast range of signals—identifiable attributes about a user and their context at the time of an auction. These include:

• Device
• Physical Location & Location Intent
• Weekend & Time of Day
• Interface Language
• Browser
• Operating System
• Demographics (for display only)
• Product Attributes (for shopping only) But there’s more! Smart Bidding can also tailor search bids based on the attribution model you’ve selected for your campaigns.

While the exact algorithms behind automated and Smart Bidding remain a Google secret, one thing is clear: these algorithms are incredibly sophisticated.

Is Google Ads Automated Bidding Right for Your Business?

We’ve addressed some doubts about using automated bidding, but you may still be unsure if it’s the best strategy for you. Similar to pre-race routines, some tactics set you up for success while others can hinder your performance. Just as proper stretching and hydration are beneficial before a race, eating a heavy meal or staying up late is detrimental. The same principle applies to automated bidding. Here are some factors to consider: Consider automated bidding if:

• You have conversion tracking set up.
• Your campaigns aren’t budget-limited.
• Your targeting isn’t excessively narrow.
• Your target performance metrics are realistic.
• You have a well-structured campaign with logical and relevant ad groups (including keywords and ads). Automated bidding may not be suitable if:
• You haven’t implemented conversion tracking.
• You have a tight budget.
• You’re targeting very specific demographics, locations, etc.
• You expect immediate results (Smart Bidding strategies require time for performance analysis).

Maximize Conversions is just one of many automated bidding strategies in Google Ads. By laying the groundwork properly, you can start seeing positive results more quickly. Work smarter, not harder, and achieve those ambitious goals! (Clearly, the running metaphor is contagious!)

The Advantages of Automated & Smart Bidding

Imagine this: Your workday has begun. You’ve had your coffee and are tackling initial tasks. In essence, the starting pistol has fired, and you’re a few miles into your race. You’re warmed up, prepared, and ready to benefit from all the groundwork you’ve laid. We’ve explored Google’s automated and Smart Bidding strategies: their essence, functionality, and ideal use cases. Now, let’s focus on how they benefit you.

1. Unlock Growth & Achieve Your Objectives

Fundamentally, automated and Smart Bidding aim to attract more qualified prospects to your landing pages. Some strategies prioritize traffic volume, while others emphasize traffic quality. Both outcomes can be beneficial depending on your specific goals. Implementing these strategies allows you to discover and leverage new opportunities, maximizing your campaign’s return on investment (ROI).

2. Improve your Google Ads Optimization Score

Your Optimization Score reflects the effectiveness of your Google Ads account setup. A score of 100% indicates optimal performance. Google Ads provides recommendations that can boost your Optimization Score. Since automated and Smart Bidding strategies enhance campaign performance, implementing them contributes to a higher score and more efficient account operation. nexus-security Advertisers with an Optimization Score above 75% experience, on average, 3 times higher conversion rates, proving their effectiveness!

3. Save Time and Effort

By embracing automated keyword bid management, you reclaim valuable time to focus on other essential tasks like search query monitoring, ad copy optimization, landing page testing, and more. Why struggle with endless data analysis for bid optimization when automated and Smart Bidding strategies can provide instant, data-driven decisions? Delegate this task to Google’s expertise and free yourself to excel in your areas of strength!

Boosting Bidding Intelligence with nexus-security

As we approach the finish line, nexus-security Advisor is there to support your final steps towards successfully adopting automated bidding. The Optimize Bids alert in the 20 Minute Work Week empowers you to apply Smart Bidding strategies to the most suitable campaigns.

How does the Optimize Bids alert work?

The Optimize Bids alert analyzes your Search campaigns, identifying areas for improvement and recommending the Maximize Conversion bidding strategy when appropriate. A Search campaign qualifies for this recommendation if it:

• Is active (not expired)
• Uses manual bidding (manual CPC or eCPC)
• Isn’t using a portfolio or shared bidding strategy
• Is at least three months old
• Has conversion tracking enabled (with conversions in the last 90 days).

If you implement the recommendation, the Alert Insights Monitor in the 20-Minute Work Week tracks the performance of the new bidding strategy for the selected campaign. The monitor highlights performance across two periods:

1. Learning Period*: A 15-day window for Google to analyze historical campaign performance and determine the optimal path forward.
2. Optimization Period: A 30-day period following the Learning Period where Google applies the best strategies for the selected campaign. *Note: The Learning Period is crucial as Google’s algorithm gathers data to optimize bids for your conversion goal. Significant changes during this period can reset the learning phase, delaying improvements. To avoid this, a caution label appears on your campaign in the Manage section, reminding you to let it run its course.

Using the Optimize Bids alert to drive conversions

nexus-security’s analytics team studied 204 campaigns [that adopted the Maximize Conversions strategy through the Optimize Bids alert] that had completed both the Learning and Optimization Periods. The results were impressive:

• 70% experienced increased conversions during the 30-day optimization period compared to the 30 days prior to using Maximize Conversions.
• 80% saw a decrease in CPA after switching to Maximize Conversions.
• The median conversion increase was an astounding 83%!

These results clearly demonstrate the power of this approach.

Make Automated Bidding Your Ally in Advertising Success

This exploration of Google Ads’ automated and Smart Bidding strategies, alongside nexus-security Advisor, aimed to highlight their potential to simplify and enhance your paid advertising efforts. Step by step, mile by mile, we’ve uncovered the possibilities. Technology can be a powerful ally, streamlining tasks and improving outcomes. As digital marketers, we understand that effective technology utilization fuels business growth. By leveraging these advancements in online advertising, you can manage accounts more efficiently, optimize campaign performance, and achieve key business objectives. We face daily challenges, constantly striving to reach our goals. By adopting strategies that boost our efficiency, we can persevere, progress, and achieve success. See you at the finish line!