Smart Bidding optimizes ad spend for conversions when you pick the right strategy, set the right targets and conversion action, and focus on the metrics that matter to you.
Smart Bidding refers to bid strategies that optimize for conversion or conversion value using Google’s AI to leverage a wide array of signals to make accurate predictions at auction time.
You can use Smart Bidding with any of these bid strategies–maximize conversions, maximize
conversions with target CPA, maximize conversion value, or maximize conversion value with target return on ad spend, Target ROAS.
Here are some best practices that can boost your campaign performance and help save time.
Pick the right Smart Bidding strategy based on your goals. If your goal is to generate
conversion volume- for example, you want to increase transactions or leads–use Maximize conversions with an optional Target CPA.
If your goal is to optimize for value– for example, or revenue or profit– use Maximize conversion value with optional Target ROAS.
This enables Smart Bidding to adjust bids based on a value a conversion is likely to generate.
So should you choose a maximize strategy with or without a target? In this scenario,
let’s consider you are trying to decide between Maximize Conversion Value with or without Target ROAS.
The Smart Bidding strategy that works best for you will depend on your situation.
Use Maximize conversion value with a Target ROAS when you want to maximize your
value within a specific target return on ad spend.
This can help you capture more opportunities to maximize conversion value
within your efficiency target.
Use Maximize Conversion Value without a target if your goal is to drive as much
value as possible within a set budget.
With Smart Bidding, we don’t recommend using additive constraints
like Maximum CPC bid limit, for example, if you’re using Maximize Conversion Value with a Target ROAS but also applying a maximum CPC bid limit because it can restrict your ability to hit your ROAS goals.
If applicable, be sure you’re setting the right targets. Customers should
make target changes that are aligned with their business objectives.
This includes adjusting targets due to market changes, to manage spend on a campaign,
or to optimize to a new ROI goal.
Customers should feel comfortable changing CPA and ROAS targets
as frequently as they would like and by as large a magnitude
as they would like. For new strategies, we recommend setting targets in line with historical performance to maintain similar volumes.
Use the last four weeks as a frame of reference. Pick the right conversion
goals to bid to and assess performance. When setting up your bid strategy,
ensure you have conversion tracking enabled. If you’re using
value-based bidding, be sure to choose conversion goals that you’re able to confidently assign meaningful values to.
Ideally, these actions would also have relatively short conversion delays. You’ll want to consider conversion delay when trying to assess your campaign performance. One simple way to evaluate performance is using the Bid Strategy Report, where you can view your average performance against your average target. Be sure to look at a lengthier time frame for statistically significant data.
You can also view explanations for performance fluctuations. Focus on the
metrics that matter. When using Maximize Conversion Value with an optional Target ROAS, monitor the conversion value and, if relevant, the return on ad spend.
This is what the strategy is optimizing for secondary metrics, like
average, CPC, or incidental.
