If you Use Automated Bidding Do These 5 Things Right Away

Bidding is one of the largest levers a marketer has in controlling return on ad spend, aka PROFITS. Why would you give up that control? We come from over 17 years of Google In-House experience. Here is our take on bidding for profits.

Google’s automated bidding products like “enhanced CPC,” or “Target CPA,” bidding can add some “set-it and forget-it” benefits for marketers. They are an algorithm-driven company that predicts when a person is going to take a desired action, like “Buy Now.”

However, it is very important to continuously test within a Google Ads Search account. Google is making moves to offer less and less transparency into how effective your CPC bidding is by deprecating reports that used to tell you where you showed up on the page. One example of that is the average position report. They deprecated the report earlier this year and I found that to be super annoying!
Why would you run an auction with 4 potential winners and not tell the winning bidder where they showed up?


If you’re running ads with any of the automated bidding options, here are 5 things you should do right away:

1. Build an exact-match keyword campaign with manual bidding and run it against an exact-match automated bidding campaign.

2. Check what percentage of the time your ads show at the “absolute top” of the page and also your “impression share report.”

3. Raise bids 10% at a time for campaigns that are not showing up at the “absolute top” more than 10% of the time.

4. Monitor your CPAs as you raise bids.

5. If your sales are not profitable, cut CPCs until your CPA stabilizes to a profitable range.

Look at your CPCs over time in your automated bidding campaigns. Do you see the automated bidding inching up your bids penny by penny? Over time, that can lead to significant price increases for you, and billions of dollars for Google.

Yes, this is manual work. Yes, it is time consuming. But we have seen CPCs and CPAs come down an average of 6% for brand new campaigns that are on manual bidding vs. automated bidding. What could you do with an extra 6%? For some advertisers, that could mean an additional 1,000 clicks per month!

Give it a try!

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