Automated bid strategy: Definition - Google Ads Help (2024)

FAQs

Automated bid strategy: Definition - Google Ads Help? ›

A bid strategy that uses Google AI to set bids for your ads based on that ad's likelihood to result in a click or conversion.

With automated bidding, Google automatically sets bid amounts based on the likelihood that your ad will result in a click or conversion. To do this, they analyze data such as a user's device, operating system, the time of day they are searching, demographics, and location.

Learning. After you make a change to your bid strategy, there may be minor performance fluctuations as Google Ads optimizes your bids. To indicate this, a "Learning" status may be shown. You can hover over the status to show which of the following 4 reasons your bid strategy currently has a "Learning" status.

Smart bidding. Smart Bidding is not the same as automated bidding. Smart bidding strategies are a part of all automated bidding strategies. They use machine learning for optimizing your bids in order to maximize conversions and conversion value across your campaign or your bidding portfolio.

The core benefit of Google Ads automated bidding is the ability to improve your website visits in an efficient way that takes advantage of technology. With automated bidding, you don't have to spend time figuring out how to bid on various keywords or entering those bids.

Automated bidding increases efficiency by eliminating the need for advertisers to manually modify bids, so saving them both time and resources. Marketers are then free to concentrate on things like ad concepts, landing page optimisation, and campaign planning.

The advertiser sets a maximum bid value, and the platform will then automatically adjust the bids up or down based on a variety of factors, including the competitiveness of the auction and the likelihood the ad will convert.

How can automated bidding help her? By guaranteeing improved results.By automatically setting the maximum CPC bid limit.By keeping her ads updated with new copy.By setting her bids when auctions happen.

What are the cons of automated bidding? ›

You could end up with a higher cost per click (CPC) with automatic bidding. You might pay $50 for a click that could have been $10 with a manual bidding strategy. It's like playing poker and raising your bet every single hand. You might win a few hands, but it's going to cost you more than if you make smarter bets.

Automated Bidding

Instead of manually adjusting bids for each keyword, you let an algorithm do the heavy lifting. It analyzes factors like user search intent, device, and past performance to automatically set bids that maximize your clicks, conversions, or return on ad spend, all within your set budget.

Target Cost-Per-Acquisition (CPA) is a strategy that is used to get more conversions for your ad budget. It automatically sets bids to get as many conversions as possible while staying within the advertiser's target CPA. This works by setting bids based on how much each conversion costs.