Google recently introduced a new AdWords Smart Bidding strategy called ‘Maximize Conversions’. The aim of this is to enable AdWords managers to get the most conversions from their marketing budget using an automated system.
It can be challenging to know exactly how to initially set the right bid and then adjust it to ensure that your advertising spend gets the most customers. That’s where Maximize Conversions comes in – it automatically sets the right bid for each auction to help to get the most conversions within the daily budget.
For example, for a clothing retailer who’s trying to quickly sell last season’s styles, Maximize Conversions helps to get the most sales from the existing budget by factoring signals like remarketing lists, time of day, browser and operating system into bids.
Smart Bidding uses Google’s machine learning technology to optimise for conversions across every ad auction (a.k.a “auction-time bidding”). Google cites the case of Trex, a luxury composite decking company that used Maximize Conversions to build brand awareness and saw a “73% increase in conversion volume”.
Google’s made it relatively easy to implement Maximize Conversions, which can then be tested by getting insights and by monitoring bid strategies to understand its performance.
This brand new bidding strategy has yet to be experienced and has the potential to improve the ROAS on AdWords campaigns, but often with automated bidding that uses Google’s machine learning, it can take a few weeks for that to learn enough to work effectively based on historical conversion data. So there can often be an initial period of ‘bid shock’, when the original max. CPC bids can change dramatically and become more costly. If that initial period can be endured however, the automated bidding can often work well over time.
If you want to know more about how Smart Bidding strategies have the potential to improve your AdWords campaigns, contact us now.