One of the benefits of using Google Ads is that the system’s algorithm work does much of the heavy lifting. It finds appropriate sites to place an ad in front of its target audience. Google has several smart bidding options that are geared to optimize a company’s advertisements for a particular goal. Google recently announced a new smart bidding strategy that’s supposed to provide the maximum conversion value.
The algorithms that Google Ads used for its automated services are already pretty useful. They can consider so many factors, and the results are usually better than when people try to control the bidding manually. These smart bidding strategies become a necessity when handling multiple ad campaigns, as it would be challenging to keep up with all the ad sets manually. This new bidding option will make it easier for businesses to get conversions at the best price.
As Google explained in the product announcement, “At Google Marketing Live, we gave a sneak peek at a new Smart Bidding strategy: Maximize conversion value. This automated bidding strategy helps you maximize the total conversion value of your campaign within your specified budget. Starting today, you can use Maximize conversion value for all Search campaigns.”
Maximize Conversion Value automatically sets bids to help you get the most conversion value for your campaign while spending your budget. To get started, advertisers will want to set conversion values for their conversion types or use transaction-specific values.
The companies that got to use this new conversion strategy during the beta testing saw promising results. In their announcement, Google gave the example Entripy, a high-profile company that sells custom printed t-shirts in Canada. The company switched from using manual CPC bidding to using the Maximize conversion value strategy. During these tests, the brand saw a 283 percent increase in conversion value and a 286 percent improvement in ROAS.
The introduction of the Maximize conversion value strategy is welcome news for advertisers, but it may just be the start of something bigger. Google is always improving its offerings, and there’s some indication that more changes to bidding strategies are coming down the pipeline.
As Ginny Marvin explained in Search Engine Land, “Google also teased conversion value rules at GML to give advertisers more flexibility in assigning value to conversion actions. When it becomes available, rules can be set based on characteristics such as location, device, and audience.”
Advertisers should consider trying the new automated bidding option, especially if they were still using the manual option. This bidding strategy is designed to give businesses the best value for their advertising spending. There’s no reason not to give it a try.
Switching to Maximize conversion value can help prevent a business from wasting their advertising budget. From her experience with the new strategy, Ginny Marvin notes, “…when a campaign that is spending well below its daily budget, on average, Google will show an option to lower your daily budget based on your actual average daily spend.”
For more recent news about changes to PPC advertising, read this article on new Google ad placement options for advertisers using an app campaign.