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What Is Smart Bidding In Google Ads

What Is Smart Bidding In Google Ads
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Yeah, I believe we are live. Please give me a moment. I'll make sure everything is working fine and we'll get started. Good... working... Hello Hernan. I'm very well. Thank you and welcome from Argentina. Must be early in the morning over there. Alright, Sunil. Okay, I think everything seems to be working good and we get started. Hello, my name is Uzair and welcome to today's Youtube Livestream.

It is being livestreamed across on Facebook, Twitter, Youtube and LinkedIn. These sessions are held every weekday at four o'clock UK time where I go through with you. Topics such as Google Ads, digital marketing, video ads, online marketing, pretty much anything to do with generating leads or sales I decided to. Interact as much as you can, ask any questions you may have and I'll try my best to answer them for you.

The first part of the session, I'll go through a certain topic and today I'm going to talk about Google Ads smart bidding. I did cover this topic a few weeks ago but a lot of questions have been sent across as to how to use it properly so I thought I'll do this session again and if you have got any questions about this, please enter them in the comment box on the right-hand side in the live sessions.

I will make sure that it is answered during the session. Hello to everyone. Aamish, Sefali. Yep, I'll come back to your questions towards the end. Okay, so before we get started, couple of things I want to show you. First of all, I've been gone a bit of a shopping...not a spree but I bought some new items that I use for creating my videos.

I've got this new Sony... It really is tiny. I compare this to my iPhone. You can see that it's extremely small and the good thing I like about this is the flip screen so I can flip it if I'm... because the lens is... aperture is 1.8 and what that means is it can open up quite wide and you can have a very very shallow depth of field.

What that means is you can have a very blurry background if your background is very distracting. The other thing which I got is this Rode Smart Lav micro mic so I can plug it into the camera. The other one I had, it was okay but this one I believe does broadcast-quality audio. It wasn't expensive. I mean the camera was about 700 pounds which is equivalent to $900 this is about 50 or not even that but 35.

Then the other thing which I got is this little mini desk pod, gorilla pod which you can connect to your camera. Clamp it anywhere or keep it on your desk if you are putting videos. The reason why I've got this one is because we'll be creating a lot of new content. A short form content on TikTok, Facebook, Instagram.

These three channels they love short form videos so we need to ramp up our video marketing and as I mentioned a few days ago that we will be creating a lot of videos going forward. Long form like this one as well as short form where we call these the micro-content. Micro videos 15, 30 and 60 seconds long.

This is what you need to do now. You don't need to have all this kit. You can quite easily create it with your smartphone if you don't have the budget. If you have the budget then you can invest in the cameras and the tripods and everything but if you haven't got started with video marketing, I always say this to you.

If you don't start now you're never going to start. You must. The other thing which I want to point out is this quote over here on the screen. Your potential is unlimited. Okay, so let's move on to the topic for today. Where is it? Google's... I've called this how smart are you because a lot of people when they do use smart bidding and the smart campaigns, they don't use it the smart way.

They jump right into it and they don't get the results. Hopefully, I'll give you some little tips and advice as to how you can make the tCPA. That's the target cost per acquisition. What that acquisition depends on your conversion tracking. An acquisition could be someone fills in a form on your website. It could be anything which you are targeting as a conversion and this is mostly mainly used for lead generation as to how much are you prepared to pay for a lead.

What you do is you set up a Target CPA and tell Google that I'm prepared to pay 10, 20, 50, 100 or whatever that number may be then the algorithm is going to go out and get that conversion or quite often you will find and I see this a lot that people or somebody has set up and you need to give Google enough budget to be able to maneuvre the campaign in the right direction first of all and then get you those conversions because it's going to do some kind of testing.

You know, it won't quite a few times but Google is going to average it out to your target cost per acquisition or the cost targeting 50. If I was you I would put in at least a 250-pound budget saying that 50 pounds CPA there was a currency multiplied by four or five. You might feel a bit nervous to bid so much but if Google is giving you that conversion at that price and spending that budget then you should be able to scale it up because what you want to do is to make sure that the conversions which you get as a lead then get converted into sales.

Now not every lead will convert into sales. You might have a 50, 60, 70 or you may have a 10 conversion rate. You do your maths. You do your sub for an acquisition. The good thing about this kind of campaigns is the headache of bidding keywords and all that. You don't need to... well, keywords you need to target but the bidding especially is taken out of your hand.

You don't need to worry about it. Google is going to bid aggressively in front of those who it thinks is likely to convert and bid less who thinks it's not going to convert and then you get that average cost per acquisition. Once I get that target TCPA, ideally you don't want to see that red warning sign in your campaign.

The next one tROAS, target return on ad spend. How much are you getting back when you spend any budget or money on ads. This bidding is mostly used for e-commerce stores or websites. If you are selling a physical product like the camera or a tripod or a microphone or whatever, you will not be bidding on tCPA. TCPA is for lead generation.

These ones that the tROAS has is for e-commerce. Every time you, let's say you're getting a 300% return on ad spend, what that means is 3x. Take out your cost of goods, take into consideration, how much you're spending on acquiring an order and then work out how much your profit is. Again, the budget is the key. If you give very little budget, it's not going to run and these campaigns require a fair amount of leeway with regards to the budget.

Otherwise, you will find that you hardly get any impressions or clicks and obviously if you don't get those two, you're not going to get any, a minimum. Let's say if you're working this game. When you're giving one to Google and Google gives you three in return, you're not going to stop after giving away a hundred dollars and tell Google don't give me any more money.

You'll say okay take my thousand or take five thousand or ten thousand as long as I keep getting that PX return. With tROAS, well, once you hit that number, you keep on scaling slowly. Slowly but don't be... don't jump from let's say if you're spending 100 a day to 1000 a day and you get excited, "Oh my god, I'm getting 500% tROAS, I'm going to increase my budget 10 times," is going to screw up the algorithm and the campaigns and you'll find that it goes into learning mode or something happens which nobody knows what happens inside Google's algorithms or the mind and then you'll wonder why is it not running.

The way I would do that is to have small incremental increases. If you're spending 100, go to 125 and after a few days 150, 200 and so on. Don't take big jumps, otherwise, your campaign is going to suffer. Maximize conversions is what as it says on the tin. It's going to maximize the... it's going to go and get as many conversions as it can for your budget.

You don't need to spend or allow 4 to 5x the budget of your CPA or the for the ROAS. It's going to optimize for the conversions and it will probably and it usually does of your campaign instead of targeting a specific CPA. This kind of bidding is really good if you want to get the conversions in as quickly as possible because you know that you got a really good funnel in the back end which is very profitable.

Even if you are getting the conversions at a higher price, are you're prepared to pay for it? The Google algorithm is going to maximize your conversion value. What it's going to do is to bid more aggressively in front of those people who Google knows are the high rollers or the high spenders or the luxury buyers or whoever.

Google knows more about us with these various data points than we know about ourselves. It knows exactly who we are, what we do, works it out and maximize the conversions as much as possible. Now the biggest mistake which I see everyone make is starting the campaigns right off the bat with smart bids. What I would recommend you do is start manual bids slowly.

Slowly build up your data. The machine knows what we are looking for as a conversion value or as a conversion, is going to spend less time in that eligible learning mode and you will find very frustrating when you go straight in with zero data of because the machine is learning. It's in learning mode and when it is in that learning mode, I would highly recommend that you don't touch it.

Don't keep going in there, keep fiddling with the campaign, changing things around because every time you change something it's going to reset and then it's going to take even more longer. Let it be. Let it do its job. Sometimes it takes a few days, sometimes a few weeks but you need to be patient so this is why I say to you that get the data in first and then go to smart... eCPC, enhanced cost per click, this is obviously, but then Google is going to enhance increase or dislikely to or not likely to convert.

What you can also do is put a cap on the maximum CPC because it can go and spend two hundred dollars a click and you might think "Oh my god, just one click has costed me my whole day's budget," so make sure that you do put in a maxim bid because Google can quite easily go and spend in that niche.

The cost, the clicks are quite expensive and enhanced CPC is again going to be bidding very aggressively in front of your target audience to get that click. It does not look at the conversions. What it does is it wants that click to the ad to be shown and get the click to your website to maximize your conversions.

Okay, so I'm gonna share some questions which have been sent across and some comments but now is the time for you to put in any questions you may have in the comment box. I can see quite a few questions pinging in and I'll come to that in a second once I finish these last few slides. This is what I meant by eligible learning.

When you don't have data and you've gone straight into mod campaigns, that campaign is going to... There is a billing tab. There is no way you can run Google Ads without the billing tab. I don't think you should be.... and you'll go in there and unfortunately you will have to put in your bank details or your credit card details before you can start running Dynamic Search Ads.

I've covered quite a bit and I love these ads as well. Again, the headache of keywords is taken away from you. You don't need to worry about it. You put in the ad. You don't even need to write the headlines. All you do is write description line one and description line two and set the targeting as per the ad group as to whether you are targeting a certain category or a landing page URL.

Google is going to look at your website and it's going to match this ad to that search query. The good thing about this is nobody knows what the ads look like because Google is going to create its own headlines but the good thing is it works wonderfully well as Joe says over here. You also run DSA ads... a lot more data signals and every day on Google there are about 15% to 20% of search terms which have never been searched before so they are brand new.

This is where we can fish and hunt for new search queries and if you...... Thank you Sai Ram for sending us your best wishes. Thank you for that. Yeah, 18 years ago we started the business and we're now moving forward into the next phase of our business so basically, the business has become mature and an adult and now let the fun continue the next 18 years or more. (Vanam:) "Best niche clients suitable for (Google Adword)." Any is suitable for Google Ads because we go...... and you can go into the keyword planner, put in that search term or niche and you'll find there will be thousands and thousands of search terms....... a new one, Google Trends is the best way to find the latest and the greatest trend and you can quickly go in there and this is how most marketers jump in with products.

Take for example the selfie stick when it came out. That's how you would find it. How do you know the selfie stick is what people are searching for and is selling a lot is in Google Trends. It will have billions and billions of searched term. Research has been made and you know that there is a hot market which is trending right now and you need to get on board.

Thank you Cathy for your...... to these live sessions and spend your precious time with me send in your very interesting questions as well. I'm going to go to the comments now and try answer them for you. If you haven't put in your questions then please do so now. Hi Hernan and welcome. What you're saying, "You will review previous videos or other different topics about smart campaigns." Well, I meant, smart campaigns, there's only so much you can have unless something new comes out but I also tend to repeat the mess for this.

You know that... something has happened the video has gone off for some reason. If it has and you can still hear me I'll continue because I don't want to cut off. (Hernan:) "I did two smart campaigns from the same niche, each company is eight kilometres away...... 3-week campaign began to have almost none when I corrupted the other." I'm not sure Herman what you...... (Hernan:) "Is there a video to know what to charge for each of the custom ads?" No, I don't think you can have a video for that because each... you pay for your clicks, for your keywords not for the ads.... running an ad?

I covered this yesterday Nikhil so if you can go and revisit that yesterday's session, just search display, video, remarketing, all sorts, shopping and secondly I don't know your circumstances, whether you are single, you got family, what are your... what's your lifestyle like, your business overhead expenses? It's impossible. I can teach you how to calculate it but I can't give a number like this to use.

You just keep on adding or putting up as negative keywords. (Sandy:) "After manual..." Yeah, you can run both manual as well as a smart campaign so not a problem. Yeah, 70-30, well, I can't say whichever is performing the most, you put the most budget in there. I can't give you an answer because why would you put 70% of your budget if it is not performing.

Hi Adam, "Why would you choose maximize conversions versus tCPA?" Because tcpa will need 4 to 5 times budget, maximize conversions.......for some reason is switched off but you should be able to hear me and see the last slide. If somebody can put a little yes in. Good, I'll cover these last few questions because I'm not sure if I'm talking to just a computer.

I can't hear. Okay, but there seems to be a bit of a problem. Livestream...... (Sandy:) "Your front end for lead magnets, for free live training and live and free for Google sheet and free call." Sound is coming through. Thank you Emily. Yeah, video has cut off. I know. The camera switched off, I don't know but that's fine Emily but at least you can hear me.

Sandy, I mean for my front end well I'm not generating any leads with these live streams. I'm not asking you for an email address even. All anybody can come in here and they can join in. All I'm doing is building up my brand and the brand awareness. Raising my brand and then we have these lead magnets so somebody can, anybody can download it for free and we build up our email list.

Okay Sefali, I'm not sure what you're asking, "In the wear my shirt section. There is a lot of impressions that have been mentioned under others and in the table?" Okay, yeah, so Google doesn't know. I'm not sure what their... where they showed so that's why you are going, seeing that. Nobody can do anything about it I'm afraid.

Hi Roshan, "I've created the campaign. It is based on IT services. I can't use trademark words such as WordPress. I do that and my keyword quality score is low and I don't receive clicks. How to get clicks for this?" Well, you can make it relevant. You have to go broader. Think outside the box because obviously you can't use trademarks in your ads but you can bid on the trademarks and then make your ad so appealing that people when they see it they're inclined to click on it.

You will have this problem with every kind of trademark. The quality score will be too low. Don't worry about it. Get the clicks. What would you rather have a low-quality score with conversions coming through or a high-quality score with zero conversions coming through? I'd rather have the first option because I want the conversions even if it's at a low-quality score.

Then Google's algorithm is going to reset and see that the conversions are coming, the click-throughs are healthy and your quality score might improve. The trademarks is that's the only way you can do it. There's no other way. (Sefali:) "Should we narrow down our smart ads and video ads with keywords, in which campaign goals should we narrow down based on keywords?" Well, I don't go on campaign goals.

I just have campaigns with no goals and set up my conversions. You've got to control your campaign with, obviously with your keywords. Don't go broad match otherwise you're going to blow away your budget without much results. (Sefali:) "I want to call to a local multi-brand home appliances showroom or visit the showroom. Which campaign goal would be best?" Well the campaign goal will not make your campaign...

You've got two different types of calls. You want people to call and then you want people to visit the showroom so Google maps ads on there would be the best for people to visit the showroom and call ads for people to make the call. Hi Sunil, "I'm new to Google Ads." Okay. "My brother is running ads for their clients.

Daily budget is 580AED and using tCPA. Conversion value is average 80 to 105AED. It's 60% of the product value. Any suggestion?" Without looking at the campaign, I really can't give much advice as to what's happening. If you are not profitable that means the target cost per acquisition is too high and you need to look at reducing it down and reduce it down by looking at your keywords.

Which keywords are performing? Which ones aren't performing? Which ones are expensive and go after those handfuls of keywords which are profitable. I'm not sure which ads you are running either. You change the messaging on the ads to increase... Well, increasing the click-through rate won't increase the average order value but what you can do is don't look at the first time order yesterdays or day before yesterday's session.

I talked about customer lifetime value. I'm pretty sure you may not be looking at that. You're just looking at that first order value and not taking into account your customer lifetime value. If you do that your numbers are going to look completely different. You're welcome Sandy. Roshan, "I don't receive clicks and conversions not coming yet." Okay, if you're not receiving any clicks then definitely you will not be getting any conversions.

That's for sure. "I have created campaigns recently. I wanted to know how can I use target cpa bid strategy." Well, you won't. I mean you will struggle to do that. If you're not getting any clicks for impressions and you're going straight into smart bidding you'll struggle. You need to go into manual mode. Get the data in and then we can have a look at that. (Sefali:) "I want my banner ad to be shown in the top of the Youtube along with a call extension and also direct it to my website.

Which campaign would be helpful?" Okay, so you want the banner ad to show at the top of the Youtube home page? If that is the case then you need about 150,000 dollars per day. You can use other banner ads on Youtube as well as in-stream video ads with very little money. That would be my advice to you.

If you want to use and target videos on Youtube to put your ads on them. You can use in-stream, you can use discovery ads and you can also use display ads on Youtube. Okay, I think we're having a bit of an issue with regards to the streaming today. This would be the best perfect time to call it today.

Thank you so much for joining in today and I appreciate you being here. I will be back on Monday because tomorrow my wife Farzana will be online with some... I believe she is talking about the productivity apps which we use for our business. Till then, stay safe. Have a great weekend and I look forward to seeing you on Monday.

Bye for now.

Smart Bidding is essentially an automated bidding strategy that uses machine learning to optimise conversions on your ad campaigns. Google Ads Smart Bidding has been developed to save advertisers time and improve return on investment.

Watch our video where Uzair will explain Google Ads Smart Bidding and what it means for your campaigns.

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Why Use Smart Bidding?

Using Smart Bidding Strategies will ultimately save you time and improve ad performance, so that in itself is a good enough reason to consider smart bidding. Let’s take a closer look at 4 benefits of implementing strategic bidding.

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Advanced Machine Learning

With the best will in the world, human capability simply doesn’t match the power of a machine. The data held within it is vast making it able to more accurately predict how different bid amounts might impact conversions or conversion value. These algorithms factor in a wider range of parameters that impact performance, taking the guesswork out of digital marketing strategy.

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Wide Range Of Contextual Signals

Using identifiable attributes, you can factor in a wide range of signals into your bid optimisations. You can identify markers about a person or their context at the time of a particular auction. Device and location are available as manual bid adjustments, and you can access additional signals and signal combinations exclusive to Smart Bidding. These include location intent, ad characteristics, weekday and time of day to name a few.

Flexible Performance Controls

Every business has a different set of strategic goals and Smart Bidding allows you to set performance targets and customise settings for your unique needs. You can:

  • Optimise Search bids to your selected attribution model, including data-driven attribution.
  • Set device-specific performance targets for mobile, desktop, and tablet with Target CPA bidding (coming soon).

Transparent Performance Reporting

Google Ads Smart Bidding gives you access to reporting tools that give you deeper insight into your bidding performance, which in turn allows you to quickly troubleshoot any issues to optimise campaigns. The reporting tools include:

  • Bid strategy reports that help you understand how your ads are performing.
  • Detailed bid strategy statuses that show you what’s going on inside of your bidding.
  • Campaign drafts and experiments for Search and Display campaigns make it easy to compare your Smart Bidding performance to your current bidding.
  • Forecasts on how your ads might have performed in terms of key metrics like cost, conversions, conversion value, impressions, and clicks if you had set different cost per action, return on ad spend targets or budgets.
  • Alerts and notifications that flag any issues and provide clear steps for fixing them.

Who Should Be Using Smart Bidding?

Whether you’re a small business, or large one, Smart Bidding can work successfully for you to help your reach your business goals. You’ll need to measure your performance over a period of time to really evaluate the benefit, and Google suggests you measure at least 30 conversions over a minimum of a month.

Relevant keywords can be added to low volume campaigns to expand targeting and increase conversions.

When you have data, Smart Bidding optimises across all campaigns, meaning future new ads with no data of its own can see increased performance based on previous results.

Uzair Kharawala

Written by Uzair Kharawala

Partner at SF Digital Studios, a Google Premier Partner agency. Uzair has been helping businesses grow with Google Ads since 2002 and teaches it every week on YouTube.

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