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What is the automatic bidding function of Google Ads? Benefits and points to be aware of
Home Advertisement What is the automatic bidding function of Google Ads? Benefits and points to be aware of

What is the automatic bidding function of Google Ads? Benefits and points to be aware of

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One of the most difficult parts of running Google Ads is adjusting bids. Adjusting the maximum cost per click while considering performance for each ad group and keyword takes time and effort. So why not try using the automatic bidding function? You may be able to relieve yourself of the arduous work and improve the performance of your ads.

What is the automatic bidding function of Google Ads? Benefits and points to be aware of

This time, we will explain in an easy-to-understand manner the benefits and points to keep in mind regarding the automatic bidding function of Google Ads.

What is Google Ads automatic bidding function?

Google Ads’ automatic bidding feature is a feature included in Google Ads that uses AI to automatically set the maximum cost per click for ad groups and keywords.

Since the bid price is adjusted to maximize performance according to the goals set in advance, you can expect to improve the cost-effectiveness of advertising and improve the operational efficiency of operators.

There are following types of automatic bidding, which you can choose depending on your purpose.

  1. Maximize clicks
What is the automatic bidding function of Google Ads? Benefits and points to be aware of

The bid will be adjusted to maximize the number of clicks on your ad within your budget. You can expect an increase in the number of accesses to your site.

  1. Target impression share

Adjust the bid so that your ad is displayed in the specified location. This is effective when you have decided where you want your ad to appear, such as at the top of the search results screen or on the first page.

  1. Target CPA

The bid price is determined so that the cost per conversion falls within the target value set in advance. Recommended for those who have clearly determined CPA and CPO and want to increase the cost effectiveness of advertising.

  1. Target return on advertising spend

Adjust bids to achieve the specified target return on ad spend (ROAS). This is especially effective if you run a shopping site and want to increase sales or improve profit margins.

  1. Maximize conversions
What is the automatic bidding function of Google Ads? Benefits and points to be aware of

Adjust your bids using your entire budget to maximize conversions. Recommended for those who want to get results such as orders and applications.

  1. Maximize conversion value

Adjust your bids to maximize conversion value while staying within your budget. Ideal if you have a conversion value goal.

  1. Enhanced CPC
What is the automatic bidding function of Google Ads? Benefits and points to be aware of

AI automatically adjusts the bid based on the maximum cost per click that you set manually. For example, if the keyword generates clicks and conversions, the bid will be increased or suppressed within 30% of the maximum cost per click. Recommended for those who do not want to increase the maximum cost per click but want to increase the number of clicks and conversions.

What is the automatic bidding function of Google Ads? Benefits and points to be aware of

Advantages of automatic bidding function

By using an automatic bidding function that uses AI to adjust bids based on various indicators, you can enjoy the following benefits:

  1. Reduces effort in advertising operations

The first benefit of automatic bidding is the reduction in labor. This feature frees you from having to adjust bids for ad groups and keywords one by one. As a result, operators will be able to do creative work such as coming up with new strategies, analyzing data to consider appeal effects, and discovering keywords.

  1. Improved advertising results
What is the automatic bidding function of Google Ads? Benefits and points to be aware of

There are various types of automatic bidding functions, so you can choose one depending on your purpose, such as “wanting to attract traffic to your site” or “wanting to obtain conversions.”

What is the automatic bidding function of Google Ads? Benefits and points to be aware of

For example, if you want to receive orders or applications even if it costs a little more, you can “maximize the number of conversions,” and if you have a clearly determined CPA and must adhere to it, you can set a “target cost per conversion.” can be approached.

  1. Leads to efficient distribution

The automatic bidding function adjusts the bid price by taking into account the user’s location, day of the week, time of day, device, etc., so you can reduce unnecessary advertising costs and efficiently advertise to users who are likely to achieve good results. will be able to deliver.

What is the automatic bidding function of Google Ads? Benefits and points to be aware of

Points to note when using the automatic bidding function

Although the automatic bidding function is very convenient, it is not all good. Please consider the following points before implementing it.

  1. Performance may decrease

AI learns and becomes smarter through trial and error, just like humans. Performance may deteriorate temporarily until sufficient data has been accumulated.

They may also bid higher to achieve their goals, especially with settings like “maximize clicks” and “maximize conversions.” Don’t just leave it up to AI; manage your budget properly yourself.

  1. It may not work if the number of conversions is low.
What is the automatic bidding function of Google Ads? Benefits and points to be aware of

The automatic bidding feature uses AI to determine the bid price based on past conversion data. If the number of conversions is low, you may not be able to use the automatic bidding function in the first place. If you want to improve performance with automatic bidding, it is ideal to have 30 or more conversions per month.

Although there are caveats as mentioned above, the accuracy of AI is improving day by day. If you want to improve operational efficiency or improve advertising performance, why not consider introducing an automatic bidding function?

What is the automatic bidding function of Google Ads? Benefits and points to be aware of

summary

◆Google Ads’ automatic bidding function is a feature included in Google Ads that uses AI to automatically set the maximum cost per click for ad groups and keywords.

◆There are various types of functions, such as maximizing the number of clicks, target impression share, target cost per conversion, target return on advertising cost, and maximizing the number of conversions, and you can choose according to your purpose.

◆By using the automatic bidding function, you can save time and effort in advertising operations and improve advertising performance.

What is the automatic bidding function of Google Ads? Benefits and points to be aware of

◆However, be aware that performance may drop temporarily, advertising costs may increase, and results may not be achieved if the number of conversions is small.