How Google Ads Smart Bidding Adjusts to Changing Customer Behavior – Plumber PPC
When plumbers would rather focus on serving customers and let automation help to manage Google Ad campaigns, they use Smart Bidding. You save time and improve performance using the advanced machine learning utilized by Smart Bidding strategies because this automation uses all that Google data to make more accurate predictions about how different bid amounts might impact conversions.
How Google Ads Smart Bidding Adjusts to Changing Customer Behavior
Smart Bidding is a Google Ads bid strategy that uses machine learning to optimize for conversions in every auction—a feature known as “auction-time bidding.” With it you can factor in a wide range of signals like device, location, and demographics to optimize your bids.
As your business grows and you make adjustments to your campaigns, Google Ads continues to update your bidding models to align with any corresponding shifts in performance. On average, it takes at least one conversion cycle to adjust to performance changes that may result from internal factors like adding new keywords, testing new ad copy or updating landing pages, or external factors like seasonality or competition.
Smart Bidding in Google Ads predicts the conversion rate outcome for a click in each auction based on the specific signals present. To maximize conversions, bids also take into account the target CPA specified to ensure you’re meeting performance targets. For example, if a bid strategy starts trending below your assigned target CPA, Smart Bidding may increase bids to capture more competitive conversions until results more closely align with the target CPA.
It also can optimize based on data from all of your campaigns, so even new campaigns without data of their own may see increased performance.
Smart Bidding Algorithms are Always Learning
Launching a bid strategy with a solid foundation of conversion data can help drive faster results by speeding up the initial “learning period” of Smart Bidding algorithms. It typically takes 1-2 weeks for the algorithms to calibrate for new bid strategies as it builds and customizes performance models.
The more you use Google Ads, the better Smart Bidding works on your campaigns. Still, this largely depends on the amount of conversion data present.
When the number of conversions is low, and CPA fluctuation is high, the initial learning period for the algorithm is slower. But with more data from a higher number of conversions (in the hundreds) over a few weeks and less CPA fluctuation, the algorithm learns very fast how to create optimal bidding strategies.
Types of Smart Bidding Strategies
Smart Bidding continuously updates bidding models to align with changes in performance and adapt to conversion results to know how heavily to weigh recent data against historical data.
To match your goals, Google Ads provides a wide variety of bid strategies to meet your business goals, whether that’s conversions, revenue, or building awareness.
- Target CPA is a Google Ads Smart Bidding strategy that sets bids to gain as many conversions as possible at or below the target cost-per-action (CPA). Using historical campaign data and evaluating the signals present at auction-time, Target CPA automatically finds an optimal bid for your ad each time it would appear.
- Target ROAS lets you bid based on a target return on ad spend (ROAS), so you get more revenue and conversion value at the ROAS you set.
- Maximize Conversions automatically sets bids to get the most conversions for your campaign using advanced machine learning to optimize bids automatically.
- Maximize Conversion Value lets you maximize the total conversion value of your campaign within your specified budget.
- Enhanced CPC or ECPC helps you get more conversions from manual bidding by automatically adjusting manual bids for clicks that seem likely to lead to a sale or conversion on your website.
Leverage Smart Bidding Technology
Bidding manually with all the combinations of ad formats, devices, and audiences available today is a recipe for disaster. Running a plumbing business is enough work! Let Smart Bidding improve results by using machine learning to optimize for a wide range of bidding signals in real-time. Learn how to leverage the advanced A.I. available to get more leads, land more customers, and get the best return on investment from your Google Ads.