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Switching to Google Ads automated bidding - why now, and how to do it sensibly

Today I want to talk about switching over Google Ads campaigns to automated bidding strategies, why now is a good time, and how to do it sensibly.

March 24, 2020
Google Ads

Most of your campaigns are probably running under manual bidding. After all, that was the best way to bid when I started out in the business.

Possibly, you had tried automation at some point without good results and turned if off.

Back then Google had some early on automation available, but it wasn't real machine learning and it wasn't as refined as it is now.

Over the last few years though, Google's automation have gotten way more advanced, useful and successful.

There's another fear or concern around automated bidding that I hear from clients.

it's like: why would I switch my campaigns to automated bidding?

Isn't Google then just try to get me to spend more money and I'm giving up control?

Well, no, it's not really the case because if you think about it, economically Google is incentivized to ultimately provide the best user experience for all parties involved.

And who are all the parties involved? Well, there's the advertiser, there's Google, and then there's the user that's using Google as a search engine.

And Google's introduction of Quality Score was an indication that they're moving in that direction.

With Quality Score Google sacrificed short term revenue for the sake of long term revenue in the context of a better user experience.

Quality Score enabled advertisers with lower max CPC bids but better ads to actually win higher search result spots over other advertisers.

And that meant that Google was not going to receive as much revenue per click as was happening before.

Why Google did that? Google ultimately knows that with better user experience advertisers will see better results, will be compelled to use the system more often, and will generate more revenue for Google.

So with the automated bidding strategies Google's intention is the same: provide best user experience, have you make more money, and generate more revenue.

How to start testing automation sensibly in your account?

One: Ensure you have at least five conversions a day.

If you don't have five of your true conversions a day, you could create micro conversions.

So maybe the view of a key page or downloading an ebook or signing up for a newsletter, or spending x seconds on the site.

All those actions indicate that a specific user is more likely to convert and give Google richer data to operate on.

Two: Start an experiment inside your most active campaign.

It is quite simple to do with the Drafts/Experiments feature.

Set the experimental bidding to Target CPA. After the experiment is started, half of traffic will be sent to the experimental campaign while another half to the base campaign with manual bidding

Three: analyze the results after running the experiment for at least three weeks.

You want to compare the performance of the experiment vs the base campaign, and decide to either apply the automated bid to the entire campaign, or to end the experiment.

These experiments enable you to see if automated bidding is the right fit for your account, without any disruptions of your operations.

That's all for today. I am curious, what's your experience with automated bidding?

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Hi, I am Andrey Kisselev,
the founder of ADDI Marketing. I run ?Google Ads campaigns that help businesses grow.
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Hi, I am Andrey Kisselev.
I run Google Ads for small businesses and help them grow.

Connect with me on:

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