Google Ads‘ Smart Bidding is a powerful feature that uses machine learning to adjust bids based on various factors such as time, location, device, and user intent. For many businesses, it can appear to be the perfect solution for optimising bids without requiring manual input. However, while Smart Bidding can automate many tasks, its true potential is unlocked only with the right oversight. In this week’s blog, we discuss why expert management is still essential.
So, What is Smart Bidding?
Smart Bidding employs several bidding strategies that are designed to meet specific business goals, including:
- Target CPA (Cost Per Acquisition): Aims to achieve as many conversions as possible while staying within a target cost per acquisition.
- Target ROAS (Return on Ad Spend): Focuses on maximising revenue for every pound spent on ads.
- Maximise Conversions: Prioritises driving as many conversions as possible within a set budget.
- Maximise Conversion Value: Optimises for the highest possible conversion value, not just volume.
These strategies rely on machine learning, which analyses your campaign data and adjusts bids automatically. While automation can save time and effort, ensuring that it’s properly set up and managed is key to reaching your business objectives.
Why Expert Oversight is Vital
Despite the power of automation, Smart Bidding cannot operate in isolation. Here’s why expert management remains crucial:
- Choosing the Right Strategy
The right bidding strategy isn’t always obvious. Each one is designed with a different goal in mind. For instance, if you want to control your cost per conversion, Target CPA may be the most suitable choice. But if your focus is on maximising the number of conversions you get, then Maximise Conversions could be a better fit. Understanding which strategy will best support your goals requires a lot more than just picking one at random; it’s important to align the strategy with specific business needs.
- Ensuring Accurate Data
For Smart Bidding to be effective, it needs reliable data. A small mistake in tracking or attribution could throw off the entire campaign. Without the right data in place, the system might make decisions based on incorrect assumptions, leading to unnecessary spend. It’s important to keep the data clean and properly organised so the algorithm can work with the most accurate insights.
- Regular Monitoring and Adjustments
Smart Bidding does adjust bids on its own, but it isn’t a “set and forget” tool. The early stages of a campaign especially need careful monitoring. You’ll need someone to watch over the performance and identify where things may not be working as expected. This might include reallocating the budget, pausing underperforming keywords, or addressing other issues that the automation alone wouldn’t catch in time.
- Staying Responsive to Market Changes
Smart Bidding relies on historical data, but it isn’t always quick to react to sudden changes. This might include things like a new competitor entering the market or seasonal trends causing a shift in demand. In these situations, adjustments need to be made swiftly to keep your campaigns performing well. Having someone who can step in and make these adjustments ensures you stay competitive during these fluctuating periods.
- Optimising Creative Assets
Smart Bidding optimises bids, but it doesn’t handle creative elements like ad copy, images, or landing pages. To get the best performance, these elements need constant testing and refinement. Different versions of ads and landing pages should be tested to see what resonates most with your target audience, something the automation can’t manage on its own.
Why Relying Only on Automation Isn’t Enough
While Smart Bidding automates many tasks, it’s not foolproof. Here’s why automation alone may not be sufficient:
- Wasted Budget: Poor data, incorrect settings, or lack of ongoing adjustments can lead to unnecessary spend.
- Missed Opportunities: Market fluctuations or shifts in consumer behaviour may go unnoticed by the automated system.
- Underperformance: Even automated campaigns need regular fine-tuning to ensure they are delivering optimal results.
Combining Smart Bidding with expert oversight gives you the best of both worlds; automation for efficiency, paired with human insight for effectiveness.
Automation and Strategy Working Together
Smart Bidding is a valuable tool, but like any tool, it requires the right expertise to be truly effective. Professionals bring a wealth of experience in campaign management, data analysis, and creative optimisation, helping to maximise the potential of Smart Bidding. By pairing automation with human insight, businesses are able to operate hyper-efficient campaigns which deliver meaningful results.
Ultimately, Smart Bidding offers substantial benefits, but it cannot work without a watchful eye. With the right setup, continuous monitoring, and regular adjustments, businesses can ensure their campaigns are properly optimised, boosting ROI and avoiding the pitfalls of relying solely on automation.
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