Google has launched a new feature called Smart Bidding Exploration so advertisers can get more conversions, sales, or sign-ups when they run Performance Max (PMax) Campaigns. Smart Bidding Exploration gives advertisers flexibility with spending limits in Google’s system.
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What Does That Mean?
In most cases, advertisers set a strict ROAS target (Return on Ad Spend), and it is a basic rule of advertising that they want to get back how much money they want back against every dollar they have spent. So now Google can “relax” these ROAS limits when it thinks that might bring in more results with Smart Bidding Exploration.
The key point is that Smart Bidding Exploration could lead to more sales and new types of traffic/customers.
There is some risk as well, which could also waste your budget on less valuable clicks, making ads less efficient.
Why It Matters
Google says that early tests of the Smart Bidding Tool showed the following results:
- 18% more unique search categories leading to conversions.
- 19% more total conversions overall.
That sounds like a win, but not everyone is convinced of this tool.
What Experts Are Saying
Ayaz Ahmad, the Digital Marketing company director, noticed the update, which he commented on via social media:
- Positive view: In times of high ad competition, which is high.
- Negative view: May reduce total ROAS (less return on your money).
The Bottom Line
This update has Google in a better position for ad choices. Advertisers will know that they want:.
Get more sales (which may also mean spending more wisely).
Run tight, which will keep up efficiency.
It is a matter of balancing growth and cost-effectiveness. If you want to run a Google PPC campaign to make your business a success, feel free to contact LimeMedia.org.
