Smart Bidding conversion and value-based bid strategies
Smart Bidding uses Google’s machine learning technology to optimize for conversions across every ad auction — also known as “auction-time bidding.” Smart Bidding uses machine learning to set millions of unique bids every second across campaigns. Maximize conversions (Target CPA) and Maximize conversion value (Target ROAS) are Smart Bidding strategies.
Maximize conversions: The algorithms predict the conversion rate for a click in each auction based on the specific contextual signals present. For example, if you’re a clothing retailer trying to quickly sell last season’s styles, Maximize conversions will estimate how likely each click is to convert using signals like remarketing lists, time of day, browser, and operating system. Maximize conversions would then set bids to spend your budget as efficiently as possible while maximizing conversions.
Target CPA: The algorithms predict the conversion rate outcome for a click in each auction based on the specific contextual signals present. In addition to trying to maximize conversions, bids also account for the target CPA you’ve specified to ensure you’re meeting your performance target. For example, if a bid strategy has recently been trending below your set target CPA, the algorithms may increase bids to capture more competitive conversions until we align with the target CPA.
Maximize conversion value: The key difference in bid calculations between Maximize conversions and Maximize conversion value is the use of value as the performance target. The algorithm predicts the probable conversion value at auction-time, as well as the probability of a conversion for a click in each auction based on the specific contextual signals present. Maximize conversion value would then set bids to spend your budget as efficiently as possible while maximizing conversion value.
Target ROAS: The key difference in bid calculations between Target CPA and Target ROAS is the use of value as the performance target. The algorithm predicts the probable conversion value at auction-time, as well as the probability of a conversion for a click in each auction based on the specific contextual signals present. In addition to trying to maximize value, bids also account for the target ROAS you’ve specified to ensure you’re meeting your performance target. For example, if a bid strategy has recently been trending below your target ROAS, the algorithm may decrease bids until it reaches your target ROAS.
Awareness-based bid strategies
Maximize clicks: The same bid is applied across keywords in the bid strategy and is adjusted up or down to ensure you hit your campaign budgets while getting as many clicks as possible.
Note
If your goal is to maximize clicks and you value each click equally, applying uniform bids across keywords, adjusted up or down based on budget utilization, can be as effective as tailoring unique bids for every keyword. Maximize clicks uses this approach to get you the most clicks for your budget. This is especially effective in cases where individual keywords have sparse or highly variable click volume.
Target impression share: Bids are set to help achieve your Impression Share goal across all campaigns using this strategy. You can indicate a goal of showing your ad on the absolute top of the page, on the top of the page, or anywhere on the page of Google search results.
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