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Improving the performance of advertising campaigns with automatic bidding in Google Ads

Automatic bidding in Google Ads is one of the ways to manage bids for an advertising campaign. When you set up a campaign in Google Ads, you need to choose how much you are willing to pay to display your ad. There are two ways to do this: automatically or manually.


Automatic bidding: In this mode, Google Ads independently sets CPC bids for your ads. Google's algorithms analyze various factors such as conversion probability, auction competition, and other parameters to determine the optimal bid. The purpose of automatic bidding is to maximize the results of your campaign within a given budget. This can be useful if you don't have the time or experience to manually manage bids.


Manual bidding: In this mode, you independently set the maximum amount that you are willing to pay for each click on your ad. You can adjust this amount depending on the effectiveness of your ads, for example, by increasing bids for more profitable keywords or reducing them for less successful ones. This method gives you full control over costs, but requires more time and attention to manage the campaign.


Thus, automatic bidding is suitable for those who want to simplify the process of managing an advertising campaign and entrust bid optimization to the Google system, while manual bidding is intended for those who want to have full control over their expenses and strategy.


Types of automatic bets


  • Maximum number of clicks;
  • Maximum number of conversions;
  • Maximum Conversion value;
  • Target Price per Action (tCPA);
  • Target Return on Investment (tROAS);
  • Target percentage of impressions received;
  • Price per thousand impressions in the visible area of the screen (vCPM);
  • Price per view (CPV).


How to set up a betting strategy


When you set up an advertising campaign in Google Ads, the system offers you to choose an automatic bidding strategy depending on your goals. Google uses automatic rules to adjust bids to achieve optimal results.

However, the use of automatic betting is not mandatory. You can choose any other strategy or set the bids manually. To do this, select the option "Choose a direct betting strategy".


Types of bets


Cost per click manually


Setting bids manually is the simplest strategy and a great way to understand how the Google Ads system works. Starting with manual bid management, you will be able to see the real numbers, react to them and adjust the bids as needed.


The advantages of manual bidding are ease of management and full cost control, with which you can directly influence the results of the campaign.


The disadvantages of manually setting bids is the need for time to track the effectiveness of ads, analyze data, and make decisions about bid adjustments. It is necessary to constantly monitor and update bids to maintain the effectiveness of the campaign. You may not have access to all the necessary data to accurately regulate rates. While Google uses a lot of data and sophisticated algorithms to optimize bids, you may not have all the information you need to make optimal decisions. Google analyzes more data than is available to you, which allows it to adjust bids more accurately.


If you are new to Google Ads, start by manually setting bids to better understand the mechanics of the system. Once you have enough experience and data, you can consider switching to automated strategies that use Google's powerful algorithms to optimize your advertising campaigns.


The cost-per-conversion optimizer


With this strategy, Google's algorithm can make adjustments to the manually set bid for a keyword. To enable this feature, click on the checkbox under the manual bid setting. You can configure Google to achieve one of two goals: optimization for conversions or optimization for conversion value.


Previously, rate changes were limited to 30% up or down, but now Google can adjust rates by any percentage. This may result in higher bids and total CPC (CPC) than is beneficial to your account.


To make sure that the betting strategy is working properly, keep an eye on the following indicators:


  • CTR (Click-Through Rate): It should grow by showing that more users click on your ads.
  • CVR (Conversion Rate): It should also grow, indicating an increase in the effectiveness of your ads in terms of conversions.
  • CPC (Cost Per Click): Make sure that the cost per click remains within an acceptable range.
  • CPA (Cost Per Acquisition): Keep track of the cost of attracting one client so that it remains profitable.


Analyze these metrics regularly to make the necessary adjustments in time and ensure the profitability of your advertising campaigns.


Maximum number of conversions


This strategy is fully automatic and is designed to get as many conversions as possible while spending the daily budget. Since April 2021, it has been possible to add a target price per conversion to help manage bids.


This strategy is relatively easy to set up and does not require constant monitoring and regulation. It is also very important that each campaign has its own daily budget, as the strategy will spend the entire daily budget of the group.


Google's goal is to maximize the number of tracked conversions. Therefore, if tracking is not configured, do not apply this strategy. Without tracking, the algorithm can select an audience that is less likely to convert. The algorithm will bid as much as needed to get more conversions, which can lead to higher costs due to aggressive bids. To control this aspect, you can add a target price per conversion.


Maximum number of clicks


The Google Ads automatic bidding algorithm automatically adjusts bids to increase the number of clicks received. This strategy is suitable for those who care about traffic volume, not conversions.


The main goal of the strategy is to maximize the number of clicks. Google will automatically adjust bids to get as many clicks as possible, spending the entire daily campaign budget. This means that the system will strive to spend the entire available budget, even if the cost of clicks turns out to be higher than usual.


Maximum Conversion value


This model tries to increase the number of conversions within a given budget. Google automatically adjusts bids to get as many conversions as possible, spending the entire daily campaign budget. The average price per conversion may match the one specified in the settings, but Google often overpays to achieve more conversions.


Setting up conversion tracking correctly is vital to the success of this strategy. Make sure that each conversion action is correctly tracked and has the assigned value. Each conversion action must be assigned an appropriate value. For example, a $1,000 conversion deserves a higher bid than a $5 conversion. If the values are not assigned, the algorithm may get confused and make incorrect decisions.


Using an automatic bidding strategy to increase the number of conversions requires careful monitoring and proper tracking settings. Make sure that each conversion action has an assigned value, and regularly check the cost of conversions to maintain the effectiveness of the advertising campaign.


Target Price per Action (tCPA)


With the Target Price per Conversion (tCPA) strategy, you set a target price per conversion, and Google automatically adjusts the bids to get as many conversions at that price as possible.


This strategy is useless without conversion tracking. If you don't track conversions, Google won't be able to determine which clicks lead to conversions and won't be able to optimize bids. In order for the tCPA strategy to work effectively, Google needs a certain amount of data. At the campaign level, Google recommends a minimum of 15 conversions in the last 30 days, but to achieve optimal results, it is better to have about 50 conversions in the last month. This will provide the algorithm with enough data to make reasonable decisions.


When starting to work with tCPA, it is important to set realistic initial goals. If the average price per conversion of your campaign over the past six months is $40, do not set a target price of $20, as this will limit Google in auctions. It is better to plan the first month as a learning phase: set the target price slightly above the average or use the one offered by Google, and then gradually reduce it to the desired level.


Target Return on Investment (tROAS)


With this strategy, Google predicts the future value of conversions based on the collected data and adjusts bids in real time to achieve the target return on investment in advertising (ROAS) that you have set.


Achieve the set target return on investment in advertising. Google analyzes data on previous conversions, predicts their future value and adjusts bids in real time to optimize participation in auctions and achieve a set level of ROAS.


Make sure that you correctly track the value of each conversion. This is vital for the successful functioning of the strategy, as the algorithm will use this data to optimize bets. Start with a target return on investment that is slightly below the current effectiveness of your campaign. This will allow the algorithm to collect more data and optimize bids more efficiently. Gradually increase your target return on investment as you accumulate data and improve the effectiveness of your campaign. This will help you achieve a more profitable ROAS without drastic changes that may limit the effectiveness of the algorithm.


Target percentage of impressions received


Google offers several placement options for bids with a target percentage of impressions received, allowing you to specify preferences regarding positions in search results.


Accommodation options and recommendations:


Absolute top of the page: If you want your ad to always be displayed at the very top of the search results. Google will adjust the bids so as to increase the probability of getting into the absolute top.


Top of the page: If you prefer the ad to be displayed at the top of the search page, but not necessarily in the very first position. Google will adjust the bids to reach the top positions on the page.


Anywhere on the page: If it's important for you to just be visible on the search page, regardless of the specific position. Google will manage the bids to achieve the highest possible visibility.


The price per thousand impressions in the visible part of the screen


This strategy in Google Ads allows you to place bets on visible ad impressions, which is ideal for expanding audience reach and increasing the visibility of your brand in front of a wide audience.


Google adjusts bids in such a way as to maximize the number of visible impressions of your ad on users' screens. This is especially useful if your goal is to raise brand awareness. Since ads can often be shown to the same audience, it is important to monitor their rotation in order to avoid boring users with monotonous advertising messages. It is important to check placement reports regularly to make sure that your ad is not displayed on unwanted sites or in a context that may be unfavorable to your brand.


Price per View (CPV)


CPV (Cost Per View) is an advertising payment model in Google Ads, where you pay for each viewing or interaction with your video. However, this strategy has its own characteristics and recommendations for use.


Key aspects of the CPV strategy:


Payment terms: The fee is charged if the viewer watched the video for more than 30 seconds or performed another targeted action, such as clicking on a link or performing a call to action.


Content quality: High-quality video attracts attention and keeps viewers longer. This is important to increase audience reach and achieve campaign goals.


Targeted targeting: Hyper-targeted targeting helps you accurately reach your target audience. If your targeting is unclear, it may be difficult to achieve the desired results using CPV due to low efficiency and high costs.


Conclusion


Automatic bidding strategies in Google Ads are a convenient tool for optimizing advertising campaigns, reducing the need for manual configuration. However, it is important to remember that even automated strategies require regular monitoring and adaptation in order to achieve their goals effectively and efficiently.