What Is Smart Bidding with Google Ads?

Person Typing on Computer About Smart Bidding with Google Ads

…And How It Affects Google Ads Management

Smart Bidding uses advanced technology to automate Google Ads bidding. This can lower your ad costs, optimize Google Ads management, and allow you to make the most of your marketing budget. Let’s explore how Smart Bidding works and why we use it for our digital marketing solutions.

How Google Ads Bidding Works

In order to get your ads featured on Google, you have to bid for places. Auctions come up all the time, allowing you to tap into new markets and new keywords.

PPC bidding is similar to bidding for an item at an in-person auction, but the highest bidder doesn’t necessarily always get the ad placement. If that were the case, big corporations could buy out all the ads and squash smaller competitors. Google takes measures to ensure everyone has access to potential clients.

The bid amount is whatever aligns with your budget, but the actual price you pay is determined by your ad relevancy, quality score and other factors. A well-designed ad campaign with a relevant, fast-loading landing page is going to cost less than an ad with an irrelevant landing page. By lowering your CPA, we can help your budget stretch further and target high-converting keywords.

Different Ways to Structure Google Ads Bidding

There are many different bidding models to choose from, depending on the goal for the marketing. Typically, we use CPA bidding (cost per acquisition), which focuses on conversions. We tell Google how much we’re willing to pay for a sale, an email, a call, etc,, and that determines which ad placements we get.

Other PPC agencies use cost per click advertising, where the bid refers to what they’re willing to pay for a click on the ad. CPC aims to get general traffic to the site, but CPA focuses on getting leads to the site. Leads tend to be more valuable because they’re more likely to result in a paying customer.

What Is Smart Bidding?

Smart Bidding is an automated form of bidding that uses advanced machine learning to make decisions in real time. We can choose from a wide range of signals to increase the effectiveness of our ads. Target specific age groups, genders, locations, devices, income groups, and just about any other factor you can think of.

Smart Bidding is much faster than manual bidding, and it results in better ad campaigns. Think of it like automated alerts from your security system. You could manually check your security cameras throughout the day, but you may miss something important. Smart Bidding makes sure that your Google ads are constantly being watched to protect your advertising budget.

Benefits of Smart Bidding for Google Ads Management

The benefits of Smart Bidding over traditional bidding models include:

  • Automated bidding strategies that go into effect much faster than manual checking
  • Real-time data for informed decisions
  • Enhance and optimize bids to lower PPC costs
  • Targeted parameters to reach high-converting customers
  • Improved conversion value from advanced machine learning
  • Flexible bidding strategies that can be adjusted to your changing goals
  • Detailed reports that allow us to further optimize PPC ads
  • Forecasts and simulators to help us predict performance metrics based on current data
  • Instant alerts and notifications that keep our Google Ads managers informed about your PPC campaigns

It’s easy to see why Smart Bidding has become the gold standard for Google Ads management. We utilize it each and every day here at Detroit Internet Marketing, and we have seen tremendous results from our advanced bidding technology. If you’d like to speak with one of our experience Google Ads managers, please call (248) 234-4830 for a no-obligation consultation.

Additional Ways Detroit Internet Marketing Optimizes Google Ads

In addition to using Smart Bidding, we focus on ways to lower ad costs across the board. This impacts everything from content writing to web design to keyword selection because all of those factors play into an ad’s quality score. The higher the quality score, the lower the ad cost is.

You can learn more about how we achieve a high ROI for PPC by checking out our latest blog post: How to Reduce CPC in Google Ads.