Today, automation is a basic and inevitable part of our everyday business. Google is constantly improving its services, automating processes so that you can advertise your products more efficiently.

For example, smart campaigns or clever bidding on Google Ads. Now, we’ll take a closer look at how to work with Google Ads Smart Bidding and what strategies they offer you.

So … What is Smart Bidding Strategy?

In short. Clever bidding uses artificial knowledge to optimize your advertising bids. Based on historical information and many parameters, it predicts how many settings will affect your ad.

They can undoubtedly save time and improve campaign performance, which will also have an impact on return on investment.

If you need to learn more about clever bidding, you can do so directly in  Google Ads Help.  We will now see how they work in specific strategies.

Smart bid strategies

Maximize conversions

To test automation, start with Maximize conversions, which requires less historical data. This strategy sets bids to get as many conversions as possible within your budget.

If your goal is to get as multiple conversions as possible (at any price), switch from standard CPC to Conversions, and choose to Maximize conversion. Don’t forget to check your daily budget (it cannot be shared!), As the strategy will try to exhaust you.

For optimal configurations, machine learning can take about 2 to 3 weeks.

Target cost-per-action (CPA)

This strategy adjusts bids to a defined target cost-per-action (e.g., conversion), an average amount. Based on historical records, it evaluates contextual signals and finds the perfect bid for your ad whenever it is eligible to show.

The defined upper limit can affect the effectiveness of this strategy. If your CPA is too low, this can cause you to forgo clicks and miss conversions. While Google believes that this strategy doesn’t need initial data,

we recommend setting it up if you’ve achieved at least 30 conversions in the last 30 days. Google can then use this data for the recommended amount. You can initially set a CPA 10-30% higher and then lower it according to the results.

The same CPA must be set for campaigns with the same or similar order value. If many campaigns are similar, you can share your CPA settings, only consider carefully about your advertising structure.

Target return on ad spend (ROAS)

With this strategy, bids will be adjusted to generate more valuable conversions and higher revenue for the ROAS you set.

R $ 150 (revenue) ÷ R $ 30 (ad investment) × 100% = 500% ROAS

This strategy needs data from previous weeks/months, ideally at least 50 progress in the last 30 days. Based on this data, Google will recommend an upper ROAS limit.

In the beginning, it is recommended to work with the recommended target ROAS, a number similar to the previous results respectively. This can be optimized later in a few weeks based on your results. However,  you shouldn’t cut it down by more than 20-40%.

Unlike a target CPA, you don’t have to deal with the same amount for orders. However, as with CPA, it is not suggested to set purposes as they can limit automatic bid optimization.

Optimized cost-per-click (ECPC)

If you need to continue with manual bidding, use Enhanced CPC. This strategy automates a manual click bid adjustment based on the likelihood of a conversion. Unlike target CPA, it remains below the cost-per-click (CPC) limit.

If artificial intelligence finds the opportunity most likely to convert, it will raise your CPC bid to the maximum amount you set. If the opportunity is not attractive enough, it will automatically lower your cost per click.

Smart bidding: more of our recommendations

These four smart bid strategies on Google Ads can help you get your products as close as possible to potential customers. Make sure to try them out and experiment. Don’t be discouraged by potential initial adverse results.

Machine learning also needs time to gather what is needed to calculate. But for sure, at the end of the day, you save a lot of time, which you can spend on the creative page of your advertising or planning other strategies.

Digital Factor

We are a digital production company with a data-driven culture, shaped on 3 pillars: Design, Performance, and Simplicity.

We differentiate ourselves in the market by not supporting the traditional design of the agency, which proposes to be only restless or disruptive. Our proposal is to help companies to succeed online through efficient digital marketing actions.

We believe in delivering solutions, not services. We sell value, not time. That is why we imagine strategies with a focus on results that can be quantified.