Benefit of Google Ads automated bidding

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Google Ads has been around for a long time, yet, many people are sceptical of opting for Google ads as they aren't sure whether they'll be able to get the right kind of results with it. In a previous article, we discussed how to optimise search engine marketing campaigns. Keyword research and bidding strategy are the two most important components of Google ads. 

Here, we discuss how you can get started with Google ads by incorporating an automated bidding strategy.

The main worry with automatic bidding is that it deprives marketers of control. Understanding the multiple advantages, it offers over manual bidding and how you can guide the algorithm to perform better through automated bidding is something you must look into as a business.

Here we discuss, what are Google ads automated bidding, How does automated bidding improves efficiency, and when should you be using it.

Let's get started.

How do Google ads bidding work?

Google ads follow an auction-based system to identify the most suitable and relevant ad for a specific search query. As a business, you identify the high volume and low competition keywords related to your products and services. If Google identifies your ad and related keywords relevant to a particular search query, you are entered into an auction for ad space.


What is the CPC bid?

CPC bid is the maximum amount you are willing to you offer as an advertiser for your keywords

What is the quality score?

Quality score is a metric determined by Google's algorithm by analyzing your ad's usefulness based on CTR and landing page to assign how relevant your ad is to a specific search query.

What is Ad rank?

AD rank = (CPC bid) X (Quality Score)

The first ad slot is given to the ad with the greatest rank. Your ad rank determines the actual location of your ad. The ad rank takes into consideration two factors: CPC bid and Quality Score.

What is automated bidding in Google Ads?

Automated bidding in Google Ads is a bid method that aims to maximize outcomes depending on your campaign objectives. Google uses automated bidding to calculate bid levels depending on the chance of your ad resulting in a click or conversion by factoring in various data points such as demographics, location, operating device, etc.

Google ads offer the following option in auto bidding based on your business goals:

  1. Target CPA
  2. Maximize conversions
  3. Target ROAS
  4. Enhance CPC
  5. Maximize clicks
  6. Target impression share
  7. Maximize conversion value


What are the benefits of automated bidding?

The major benefit of Google Ads automatic bidding is the opportunity to increase your website traffic in a cost-effective and technologically advanced manner. Google's algorithm takes care of finding out how to bid on different keywords or submitting those bids, so you cn focus your time and effort on more important tasks.

Let's quickly run through some of the other benefits of automated bidding strategy:

  1. Easier to get started with
  2. No need for a large team
  3. Leveraging Google's data algorithms
  4. Ability to bid as per business goals

Easier to get started with

Suppose you are new to search engine marketing and want to experiment with it through a small bid amount. In that case, Automated bidding allows users to specify various aspects regarding a campaign without going into the nitty-gritties of defining everything. You don't have to decide on the bids on your limited expertise if you use automatic bidding. Google's automated tactics, on the other hand, make judgments based on data and based on your campaign performance, you can make necessary adjustments to your target audience, bids and keywords.

No need for a large team

Even if you are a small business, you can utilize Google Ads with simplicity due to the time efficiency and cost-effectiveness of Google Ads automatic bidding. You do not need an SEM expert or a team constantly monitoring trends to adjust the bids. Automated bidding saves time and decreases stress by taking one item off your team's to-do list. Nonetheless, you should monitor your initiatives regularly to keep track of their development and determine whether any revisions are necessary.

Leveraging Google's data algorithms

Bid automation employs advanced machine learning algorithms to create suitable bids by taking into consideration multiple bidding indicators. Manual bidding takes longer, utilizes fewer signals, and does not take place in real-time. Automated bidding may be effective when marketers provide Google with the right settings and enough data.

Ability to bid as per business goals

Another significant advantage is that Google Ads automatic bidding offers six alternative tactics to achieve your business goals. The bidding options allow flexibility for each organization to shape the campaign based on their overarching business objectives. Automated bidding eliminates the complexity, confusion and effort of establishing bids to fulfil your strategic benchmarks. Every form of automated bid strategy is aimed to aid your business in achieving a certain marketing goal.

Final word: How does automated bidding improve efficiency?

The main advantage of Google Ads automatic bidding is that it may help you achieve your objectives with less work and time. This allows you to get the most out of your money while allowing your staff to focus on other things. When you consider the additional advantages of automated biddings, such as choosing from six different bidding goals, it is easier to include Google Ads in your marketing strategy.

Get started with Google Ads today with the best search engine marketing company. 


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