Maximize Conversions is a new AdWords automated bidding strategy using machine learning to automatically adjust bids for more conversions. The bid adjustments show your search ads to those most likely to convert while staying within your daily budget.
Smart optimization made simple. That’ what makes this automated bidding strategy attractive.
One of the most challenging and time consuming aspects of using AdWords successfully is optimization. Like a good strategy game, AdWords is easy to learn, but deceptively difficult to truly master.
Though there are tried and true basics that every advertiser can live by, many of the more complex tips and tricks are only useful depending on your campaign’s goals. Of all a campaign’s potential goals, maximizing conversions within your existing budget can be one of the toughest to achieve.
Thankfully, Google has presented a powerful new potential solution.
Selecting Maximize Conversions from the available automated bid strategies for your AdWords Search Campaign puts the power of Google machine learning to work for your advertising.
“So what?” You may be asking. How does more conversions within your budget with less manual effort to manage sound?
Google claims that the new automated bidding strategy, “automatically sets the right bid for each auction to help get you the most conversions within your daily budget.” While AdWords already possessed strategies targeted at increasing your ROAS (return on ad spend), this new option focuses less on ROAS as the primary driver and is more interested in just increasing the number of conversions you receive.
So how does it do it? How does AdWords figure out how to increase your number of conversions? The new expansion of Google’s machine learning enables AdWords to use “factoring signals” to help drive up conversions. These signals include factors such as remarketing lists you may have collected, time of day, browser and operating system, device type and multiple others.
Through the careful collection and analysis of data from these factoring signals, AdWords learns which types of users are most likely to convert for you. It’s almost as if Google uses big data to build then advertise to your custom buyer personas, on the fly!
Perhaps your mobile app is very popular, and leads to more conversions on mobile devices. In addition, maybe those users who have already stopped on your website are more likely to buy from you again. Once armed with this knowledge, the system can adjust your bids so that your budget works harder to obtain the attention of these kinds of users.
Alternatively, if it seems like not many desktop users are buying from you, AdWords can set those users to be a lower priority for your bids. The idea here is simple. If Google can define which audiences are most likely to convert, it can focus your resources on courting those users.
Like several other bidding types for AdWords, Maximize Conversions requires that an AdWords user have “conversion tracking” enabled. It takes time in order for this tool to collect enough data to be usable. Meanwhile, you may be forced to stick with other bidding strategies until you have the prerequisite amounts of data for Google’s machine learning to kick in,
This can be somewhat limiting to new users, who do not have enough input data to select it at the outset. On the other hand, it is only logical. In order for the system to optimize parts of your campaign, it needs to get a baseline reading.
In this way, it is just like the control group of any experiment.
“Maximize conversions” is a new and potentially game changing automated bidding strategy for AdWords. By leveraging Google’s impressive data collecting and machine learning capabilities, you can increase the number of your conversions without increasing your budget. In addition, by letting AdWords adjust your bids, you save yourself time and effort.
Set up AdWords conversion tracking on your campaigns now. This will enable Google to begin learning right away precisely which of it’s users are most likely to convert.