Automated Bidding for Shops
Bidding manually within a Google Ads auction is time-consuming. Automated bidding allows to skip that process and concentrate on the performance of the marketing campaign. Automated bidding always takes in account a campaign’s previous performance and the successfulness of goals. This is measured by parameters like clicks and conversion rates and conversion values.
An automated campaign is started by initially setting up a conversion tracking which reports one conversion for every click and/or purchase where e.g. the value is a unit price of 8,00 USD for one item with the willingness to spend 1,00 USD on the ad. It is additionally possible to set a daily ad budget of e.g. 30,00 USD and Google’s automated bidding will try to get the best performance for this budget.
As in all marketing campaigns, the overall business goal defines the (bidding) strategies and the same also applies for shopping campaigns on Google Ads. There are four major business goals which may be considered in automated bidding of which the first is to get most clicks for a budget. As the goal suggests, here it is the goal to increase the traffic of a site without considering conversion and the corresponding bidding strategy is maximize clicks automatically in which bids are set to get as many clicks as possible within a target spend amount that you choose. Naturally this type of strategy is applied to low-traffic products.
The second business goal is set to increase conversions while staying in control of the bids. The related bidding strategy is called Enhanced cost-per-click (ECPC) and helps to increase conversions of manual bidding through additional automated processes.
The third business target can be set to get the most conversions or conversion value while meeting a target return on ad spend (ROAS) where the ROAS represents the target revenue of an advertising campaign for the money spent on Google Ads. ROAS, at the same time is the name of this bidding strategy, automatically sets bids to maximize conversion values, while reaching an average return on ad spend chosen by the marketer.
The fourth and last major business goal in Google Ads can be to get the most conversion value from a provided budget with the particularity that a return on a spend as in the beforementioned case is not requested. Consequently, this type of bidding strategy is simply called maximize conversion value.
It needs finally to be stated that all the beforementioned marketing campaigns ae available for standard shopping campaigns only. Google smart shopping campaign uses automation for bidding, ad placement, and targeting. However, only catalogue pages can be used as a landing page in this case. Standard campaigns (respectively manual campaigns) can use multiple landing pages to correlate with multiple ads.