Google AdWords has come up with a new Smart Bidding strategy called Maximize Conversions. Designed to help you make the most out of your marketing budget, this new option uses machine learning technology to optimise conversions across every ad auction, known as ‘auction-time bidding.’ It automatically sets the right bid for each auction, so you get the most conversions within your daily budget.
Maximize Conversions will help you get the most number of sales from your existing budget by taking into account signals present at the time of bid, like remarketing lists, time of day, the user’s device, location, browser and operating system. This means every bid is tailored for each individual auction. Google reports show that Trex, a luxury decking company, saw a 73% increase in conversions, a 59% increase in conversion rate and a 42% lower CPA in its first test using Maximize Conversions.
To set up Maximize Conversions, go to your campaign’s settings page, click ‘Change bid strategy’ and select Maximize Conversions. You can give it a trial run, get insights and monitor your bid strategies to better understand the overall performance.
Keep in mind that AdWords conversion tracking needs to be set up, the campaign must have its own budget (not a shared one) and Maximize Conversions will stay within the set budget but will aim to meet the daily budget – so if the campaign has been underspending, the bid will increase once you switch to Maximize Conversions.
This new strategy promises precision, an increase in conversion volume and a decrease in CPA. In Google’s own words: ‘It uses advanced machine learning to automatically optimise bids and offers auction-time bidding capabilities that tailor bids for each and every auction’. To read more on Maximize Conversions view the official document at https://adwords.googleblog.com/2017/05/maximize-conversions-with-smart-bidding.html.