ppc, marketing, click

Are you using Smart Bidding in 2020?

According to the GEM report, around 137,000 businesses come into existence every day but 90% of them fail with an online presence. Shocking right! More the technology advances, more the advancement in Digital marketing. Over the past years, there has been a rise of so many trends in Digital Marketing that have helped marketers but they still fail!

To win the crazy rat race, marketers have tried everything to increase their reach or social media engagement from targeting everyone not knowing their potential audience to doing extensive Ad campaign that led to nothing but disappointment. 

Here comes the much-awaited part- Smart bidding! 

There’s no harm in saying that smart bidding is a saviour for small digital marketers. Bidding offers various tools such as Cost per Acquisition (CPA), Target Return on Ad Spend (ROAS), Maximise Clicks, Maximise Conversions that have helped digital marketers in strategizing and executing their Ad campaigns. Technology is really a boon! Isn’t it?

 Shouldn’t we dig deeper?

What is smart bidding ?

 Smart Bidding can be defined as an automated bid strategy tool from Google Ads that use the power of machine learning and uses users’ browsing history to boost Ad campaigns.

With machine learning, user browsing history and contextual data this tool not only boosts the number of conversions but also the conversions’ value in every auction as it systematizes the bids. It increases your bids when there’s a high possibility of conversion.

Smart Bidding also helps to make fast decisions. Therefore, a feasible option for small and medium businesses! Smart bidding is a great aid to marketers because it allows them shift their attention from manual bidding to actual strategizing, they give more time to work on their strategies which helps them to achieve their business goals and get the best ROI.

If you have started using smart bidding in 2019 then by 2020, Google will come to learn more about your ad campaigns and can make necessary adjustments when required to meet your goals. There’s no doubt that smart bidding will become an essential part of digital marketing by 2021! 

 Every coin has 2 sides. Smart bidding also has some pros and cons and it is important to understand them.

Smart Bidding pros:

  • Saves time– Google can access a lot more data faster than humans.
  • Lightens the burden of the campaign– don’t have to monitor campaigns now and then.
  • It can make more accurate decisions than humans.
  • A reasonable option for smaller businesses.

Smart Bidding cons:

  • Google controls your data so you have a lesser hand in making decisions.
  • Less control over budget allocation
  • It takes time for the google algorithm to understand your ad campaigns and know your business.
  • Google’s data is so wide that it may not target potential audience

However, Smart Bidding is a burning trend in 2020. Small businesses are in more advantage as Google wants more engagement from them which brings me to my next section  ie

Should you consider using Smart Bidding?

Why not? Smart bidding is a saviour for small or mid-sized business because they have a limited budget and are naive in the area of digital marketing. Smart bidding bids for you automatically seeing the possibility of the conversion hence lessens the burden of manual bidding.

It simplifies the setup, reduces the burden and boosts your marketing campaigns. Any good marketing strategy includes the company’s reach, more traffic and conversions, and smart bidding lets you to strategize and achieve better. Viola! it’s a win-win situation!

Smart bidding Strategies

There are so many strategies for smart bidding. Here are so of them-

  • Target CPA in Google ads

Here CPA stands for Cost per action. As it is in the name, this strategy lets you decide the worth of a conversion. On deciding upon the target CPA with smart bidding, Google Ads will use this data and make the best bids accordingly. In this way, the business achieves its goals.

Target CPA is best for those who want more profitable leads. This strategy mainly focuses on the cost which Is required to acquire customers.

Let’s take an example:

You have a small E-commerce business of electronics and your target CPA is $20, you decide that the worth of conversion is +50% for TV. your target CPA will increase to $30 on TVs

  • Target ROAS in Google Ads

ROAS stands for return on ad spend just like target CPA you inform Google Ads what return on ad spend you want to be, and there google works to meet your expectations. It is a percentage value that one gets by dividing ad revenue by  cost. Anything above 100% is a profit, lower is a loss and 100% is break event point. Here’s a thing to note that you should have a specific number in mind for both target CPA and target ROAS.

  • Maximize conversions in Google Ads

Can’t decide a specific number for both target CPA and target ROAS.? Google Ads sets the maximum CPC bids hence maximizing your conversion value and also generate an average return on ad spend.

When a marketer chooses this strategy, Google Ads offers him the best results for his business campaigns within his budget keeping in the mind the profit margin.

Let’s take an example-

Your E-Business is running a digital ad campaign for the first time and doesn’t have any specific conversion targets. Instead of choosing a CPA or ROAS as your strategy, you should choose to maximize conversions.

  • Maximize Clicks

 If Simply put, this bidding strategy will get the most clicks possible. Depending upon the possibility of your ad earning a conversion, Google will automatically set bids. Device, Operating system, Location and Time of the day, these are some required data for this strategy. Since smart bidding doesn’t give you enough control, bid limits are used to increase control. Google with the help of machine learning and user historical browsing will form the best smart bidding strategy that helps the marketers to convert searchers into their users.

Needless to say, the future of marketing depends on smart bidding and if used as an optimum tool for marketing, will surely result in the business reach and therefore profit maximization.

When are you going to start Smart bidding on your google ad campaigns? Need help to run your first google ad campaign, Somart is always there to help. Send us a message.

Leave a Comment

Your email address will not be published. Required fields are marked *