google ads bidding
Published on: February 2 2023 by pipiads
Table of Contents About google ads bidding
- Google Ads Tutorials: Intro to Smart Bidding
- Google Ads Auction and Bidding: How Does It Work? | Google Ads Fundamentals | Part 6
- Manual Vs. Enhanced CPC Vs. Smart Bidding on Google Ads
- Google Ads Bidding Strategies Guide & Best Practices 2022
- AdWords Auction; How Keyword Bidding Works
- Google Ads Bid Strategies Explained | 2022 Guide
Google Ads Tutorials: Intro to Smart Bidding
برامج تعليمية حول "إعلانات Google". سلسلة الجهوزية مقدمة عن استراتيجية عروض الأسعار الذكية. ثمّة طرق عديدة على "إعلانات Google" لتقديم عروض أسعار لإعلاناتك وفقًا لما يهمّك ويهمّ نشاطك التجاري. تزيل استراتيجيات عروض الأسعار الذكية عنك المهام الصعبة وتجنّبك عمليات التخمين المرتبطة بتحديد عروض الأسعار في "إعلانات Google". عندما تمّ طرح "إعلانات Google" لأوّل مرة، كانت عروض الأسعار يدوية للغاية. وكان عليك تحديد عروض أسعار منفصلة لكلمات رئيسية أو مواضع منفردة. بعد ذلك، شاع استخدام الأجهزة الجوّالة، ما أدّى إلى ظهور إشارات إضافية. يجب استهدافها, مثل نوع الجهاز, والموقع الجغرافي والوقت, واليوم من الأسبوع ولدينا حاليًا إشارات أكثر من أيّ وقت مضى. وتصوّر أنه عليك استهداف كل الإشارات معًا. لا يمكن للعقل البشري التعامل مع كل هذه الإشارات. وهنا تبرز فائدة استراتيجيات عروض الأسعار الذكية. فهي تحلّل مليارات الإشارات لإعداد عروض الأسعار المناسبة لكل مزاد. ويساعدك ذلك في توفير الوقت الذي تقضيه على المهام اليدوية والتركيز على الجهود الاستراتيجية بينما تحقق عروض الأسعار الذكية أهدافك التسويقية. في هذا الفيديو, ستتعلّم كيفية اختيار استراتيجية عروض الأسعار الذكية المناسبة لنشاطك التجاري. سنراجع أربع استراتيجيات لعروض الأسعار الذكية: "تحقيق الحد الأقصى من الإحالات الناجحة" و"تحقيق الحد الأقصى من قيمة الإحالات الناجحة" و"التكلفة المستهدفة للاكتساب" و"عائد النفقات الإعلانية المستهدف". تستخدم كلّ هذه الاستراتيجيات. تعلّم الآلة لتحسين الإحالة الناجحة أو قيمتها. إذا أردت استخدام استراتيجيات عروض الأسعار الذكية, هذه يجب أن تكون قد أعددت ميزة "تتبّع الإحالات الناجحة" في حسابك. أفضل ما في هذه الاستراتيجيات هو أنّها لا تحتاج إلى سجلّ بالإحالات الناجحة للبدء. وهذا يعني أنّه يمكنك استخدام عروض الأسعار الذكية على حملة جديدة. تعمل استراتيجية "تحقيق الحد الأقصى من الإحالات الناجحة" على تحديد عروض أسعارك, لمساعدتك في الحصول على أكبر عدد ممكن من الإحالات الناجحة في حدود ميزانيتك. كذلك، تساعدك استراتيجية "تحقيق الحد الأقصى من قيمة الإحالات الناجحة" في الحصول على أكبر قيم ممكنة من الإحالات الناجحة في حدود ميزانيتك. بهدف استخدام استراتيجية عروض الأسعار هذه، يجب تتبّع قيمة الإحالات الناجحة وتكون هذه الخيارات ملائمة. إذا لم تحدد تكلفة مستهدفة للاكتساب, أو إذا لم تحقق حملتك إحالات ناجحة أو كان عدد الإحالات فيها قليلاً. حتّى لو كنت مبتدئًا على "إعلانات Google", لن تحتاج هذه الاستراتيجيات إلى أيّ بيانات قديمة للإحالات الناجحة. تُعد التكلفة المستهدفة للاكتساب عروض الأسعار لمساعدتك في كسب أكبر عدد ممكن من الإحالات الناجحة حسب التكلفة المستهدفة للاكتساب المحدد. والتكلفة المستهدفة للاكتساب هي متوسط المبلغ الذي تنوي دفعه مقابل إحالة ناجحة. وكما هي الحال في استراتيجية "تحقيق الحد الأقصى من الإحالات الناجحة", لا تحتاج التكلفة المستهدفة للاكتساب إلى أيّ بيانات قديمة للإحالات الناجحة. قد تؤثر الاستراتيجية التي تعدّها في عدد الإحالات الناجحة التي تحصل عليها. فإعداد قيمة مستهدفة منخفضة جدًا, مثلاً, قد يستبعد نقرات. قد تؤدي إلى إحالات ناجحة إذا كانت حملتك تحتوي على القدر الكافي من بيانات الإحالات الناجحة السابقة. قد يقترح "إعلانات Google" تكلفة مستهدفة للاكتساب أثناء إنشاء الحملة. ويتم احتسابها استنادًا إلى أداء التكلفة الفعلية على مدار الأسابيع القليلة الماضية. تكون التكلفة المستهدفة للاكتساب مثالية لحملات غير مقيدة بميزانية محدودة, لأنّ النظام لن يتمكّن من تقديم الحجم الممكن. يتيح عائد النفقات الإعلانية المستهدَف. عرض أسعار حسب عائد الإنفاق الإعلاني المستهدَف. عائد النفقات الإعلانية المستهدف هو متوسط الإحالات الناجحة الذي تريده لكل دولار تنفقه. قبل تطبيق استراتيجية عروض أسعار- عائد النفقات الإعلانية المستهدف على حملاتك, يجب تحديد قيم للإحالات الناجحة التي يتم تتبّعها, وذلك إمّا بالتتبّع الديناميكي لقيمة الإحالة الناجحة, وهو السعر الذي تبيع به المنتجات على موقعك الإلكتروني, أو قيمة معيّنة تحددها لإحالة ناجحة. على سبيل المثال، فلنفترض أنّك تقيس مبيعات متجر الأحذية الخاص بك على الإنترنت وأردت تحقيق مبيعات بقيمة 5 دولارات لكل دولار تنفقه على الإعلانات. يكون تحقيق 5 دولارات لكلّ عملية هو الإحالة الناجحة. ويجب حينها إعداد عائد النفقات الإعلانية المستهدف إلى 500%, أي أنّه لكل دولار تنفقه على الإعلانات, تريد الحصول على أرباح بمقدار 5 أضعافه. إذا أردت استخدام عروض أسعار "عائد النفقات الإعلانية المستهدف" لشبكة البحث, يجب أن تضم حملتك ما لا يقلّ عن 15 إحالة ناجحة تمّت خلال آخر 30 يومًا. وكما هي حال التكلفة المستهدفة للاكتساب, يجب عدم اختيار هدف عالٍ جدًا لعائد النفقات الإعلانية, فقد يحول ذلك دون تحقيق إحالات ناجحة قيّمة أو عرض إعلاناتك على الإطلاق. إذا كنت مبتدئًا على "إعلانات Google", ننصحك ببدء حملاتك باستخدام "تحقيق الحد الأقصى من الإحالات الناجحة" أو "تحقيق الحد الأقصى من قيمة الإحالات الناجحة" واختيار "التكلفة المستهدفة للاكتساب" أو "عائد النفقات الإعلانية المستهدف" بعد تحديد هدفك. إذا لم تكن متأكدًا من استراتيجية عروض الأسعار الذكية التي يجب استخدامها, يمكنك الانتقال إلى صفحة "الاقتراحات" في "إعلانات Google" للتعرّف تلقائيًا على استراتيجية عروض الأسعار الذكية المناسبة لك. ويمكنك حينها تطبيق هذه الاستراتيجية مباشرة. من خلال صفحة "الاقتراحات", يمكنك أيضًا الانتقال إلى علامة التبويب "الحملات" واختيار الحملة التي تريد تغيير استراتيجية عروض الأسعار فيها, ثم النقر على "تعديل" وعلى "تغيير استراتيجية عروض الأسعار". عندما تطبّق استراتيجية عروض أسعار ذكية، يجب عدم تقييم أدائك بشكل مبكر جدًا. هذه الاستراتيجية تحتاج فترة تعلّم لجمع بيانات الأداء الضرورية لتحسين عروض الأسعار. عليك أيضًا أخذ "الفجوة الزمنية" القياسية للإحالات الناجحة بالاعتبار, وهي متوسط المدة التي تستغرقها أيّ نقرة تؤدي إلى إحالة ناجحة على الإنترنت. احتسِب المدة الزمنية هذه مع فترة الانتظار للحرص على قياس أداء الإحالات الناجحة بدقة. اطّلِع على ما إذا كانت حملتك تمرّ في فترة التعلّم من تقرير استراتيجية عروض الأسعار. من علامة التبويب "الحملات", استخدِم عمود "نوع استراتيجية عروض الأسعار" للوصول إلى هذا التقرير. اعرض حالة استراتيجية عروض الأسعار الخاصة بالحملة في أعلى التقرير. هذه الحملة في فترة التعلّم. حاليًا, يمكنك أيضًا العثور على فترة تأخير الإحالة الناجحة في التقرير في الرسم البياني للأداء. يستغرق تعديل عروض الأسعار فترة تتراوح بين أسبوع وأسبوعين, إلا أنّ ذلك يعتمد بشكل كبير على عدد الإحالات الناجحة. يجب أن تعمل عروض الأسعار الذكية في كلّ الحملات, إلا أنّ زيادة النشاط تكون أسرع عندما يزيد عدد الإحالات الناجحة. عندما تكون استراتيجية عروض الأسعار في فترة التعلّم, يجب الحد من التغييرات الرئيسية التي تجريها على الحملة قدر الإمكان. على سبيل المثال, تجنّب إجراء تغييرات في الميزانية وإضافة الكلمات الرئيسية وتبديل الصفحات المقصودة. ذلك لأنّ استراتيجية عروض الأسعار تتكيّف حاليًا مع إعداد الحملة من الملائم. بدء استخدام حملات "إعلانات Google" من خلال استراتيجيات عروض الأسعار الذكية لكلٍّ من الأنشطة التجارية, الصغيرة والكبيرة, والحسابات ذات البنية البسيطة. تتيح لك عروض الأسعار الذكية توفير الوقت, ما يتيح لك التركيز على المجالات الأكثر استراتيجية في نشاطك التجاري. برامج تعليمية حول "إعلانات Google"- سلسلة الجهوزية. بعد أن تعرّفت على عروض الأسعار الذكية, حان الوقت للتعرّف على نتيجة: التحسين وصفحة "الاقتراحات". برامج تعليمية حول "إعلانات Google"- سلسلة الجهوزية.
Google Ads Auction and Bidding: How Does It Work? | Google Ads Fundamentals | Part 6
Google ads auction bidding and how does it work? in this module, we will learn about how the Google ads auction system works, how the Google ad track determines your ad position and the main factors that impact the ad quality. Google ads uses an option system that ranks the ad on the search page and determines the cost for each ad click. the order in which they appear on the search page is provided by the address. of course, whatever the ad is that appears on the first page needs to be relevant to that search term. they don't want to be bothered by the ads that are closely related to that search. so Google has a robust system which works on that, and they also want to make sure that the users click on the relevant ad. all of this will then lead to a good experience for both the users and the advertisers so that they can continue to use Google in the long run. Google uses its special version of second priced auction bidding that takes in more than just the auction bids. we will look into that a bit later, but in simple terms, second price bidding is when the advertiser doesn't need to pay for their full payment. they only have to pay the amount that is next to the highest bidder. that is how the bidding works, and Google ads auction uses this kind of bidding for its ads. so, for example, let's imagine we have three advertisers competing for the space on the search results page. the first one is willing to pay four dollars, the second one is willing to pay three dollars and the third one is for two dollars for the users to click on their ads and visit their websites. in this partikular case, if the first advertisers ad gets clicked on, then they will only have to pay 4.01, which is just 0.1 above the highest Advertiser. similarly, the same thing applies to the second Advertiser if their ad gets clicked on. this design allows each Advertiser to bid their true maximum willingness to pay for a click. for every auction, Google calculates an ad track for their ads. it usually determines the ad position and whether the ads are eligible to show at all. generally, the ad with the highest rank is on the top position of the search results page, followed by the second highest, and so on. the first factor is the bid. Whenever you set a bid for your ads, you tell Google ads that the bid amount you set is the maximum amount that you are willing to pay for a click on your ad. you usually pay less or more from that bid amount. you can also change your bid at any point in time. the second factor is the ad rank threshold. this system ensures high quality ads. they are the minimum thresholds of quality that the ads must achieve to show at a partikular position in the search results page. the third is the context of query. with the add auction, context always matters. add ranks gets to be calculated based on a lot of things such as the Search terms, the person's location, the user's device, the time of the search and a lot of other things. so Google needs to keep an account on all of that so that it can provide the right search in the right query. the fourth is the impact from ad extensions. whenever you create a Google ad, you get a lot of options to add extra information to your ad, such as a phone number or maybe even specific direct links to specific pages on your website. these features are called add extensions. Google ad estimates how these extensions and other AD formats will impact your ad performance in your campaign. and the fifth one is the auction time: ad quality. Google ads also looks at how relevant and useful your ad or website is and how it links to the person who will see it. quality scores come in this section and they will assess the quality of the ad based on the query. the advertisers and companies that are bidding on Google through Google ads only pay when they receive a click on their ads. their ads placement is based on the ad rank, but also Google wants to show more useful ads at the top of the pages, so it needs to figure out different factors to determine the quality of the ad. it does so by determining the three main factors for that quality: add relevance measures- how well the ad matches what the user is searching for and how useful their ad can be to the search. the expected click-through rate is Google's prediction on how often an ad will be clicked on when it is shown and what position it controls on the search page. this is based on several different factors, as users feedback is given to drive decision making and uses a click-through rate, or ctrs, to ensure what the users respond to. this voting system helps Google decide which ads are best for each search result. and finally, the add landing page experience. users want landing pages that help them find what they are looking for. a highly relevant landing page always equals to a higher score in the ad rank. a high quality landing page should be appropriate and original so that it can complete the user's task. it should be easy to navigate and be transparent about the nature of the person's business and how it interacts with the user and what it intends to do with their personal information. how does the ad rank influence the actual cost per click? average cost per click, or CPC, is not the price that you're paying. Google ads is a dynamic system, so CPC can vary from different auctions, as it depends on a lot of factors. it's an average, so it means that the price you pay could be above or below the average CPC. however, high quality, as always, leads to better ad locations, which then lowers the expenses of the marketing budget. from all the different bidding strategies, it is important that your bidding strategy is the right one and it reflects your marketing goals. Google ads offer a variety of bidding to choose from. the bidding that you choose will depend on how your campaign will be targeted and what you want to focus on, whether it is improving clicks, improving visibility or conversions, Etc. each bidding will be different and will serve a different purpose. let me show you the different building strategies in Google ads. when you are deciding the bidding for your Google ads campaign, you will get a list of these different bidding strategies. the first one you can see is maximize clicks. this bidding strategy sets bits to get as many clicks as possible within the target spend. after that, the maximized conversions. there are two of them: it is with a CPA Target or without a CPA Target. the first one, which is with a CPA Target, allows the bid to help you increase conversions while reaching your average cost per accusation goal. the one without the CPA Target drives as many converges as possible within your budget. you don't need to provide any Target such as CPC, CPA or any return on ad spend Target when you go for maximized conversions value. this one is without return on ad spend, or usually known as roas. when you select this bidding, it automatikally sets it to help you get as much as conversion as possible at the budget that you set. and finally, we have Target impression share. this bidding helps you get a specific impression share threshold for a specific location on the search results page, whether it is the top of the page, the absolute top of the page or anywhere in the search page. for example, you want your ad to be shown on the top of the page, regardless of the amount. this meeting will help you achieve that. now you have understood how Google has different ad ranks to determine the position of their ads, how different higher quality ads can lead to lower cost and better ad positions, and how Google provides a variety of automated bidding strategies which help align your business objectives within your marketing budget. going ahead, we will look into what makes a high quality ad differ from a low quality one. see you in the next one. 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Manual Vs. Enhanced CPC Vs. Smart Bidding on Google Ads
okay, today's video we're toking about smart bidding versus basically manual bidding. um, there's a different type of manual building called enhanced cpc bidding, which is something that i use in every single search campaign i use. i'm going to explain why in this video and of the smart bidding options you know, of course there's max target, cpa target, rora's um, of course as well, maximize clicks, if you want to count that tiknically. and i'm going to explain the differences between those and the manual options. uh, manual and enhanced cpc, which is basically a halfway between smart bidding and manual bidding. which one's the best? what are the pros and cons of each, what i use, why i use it and, ultimately, how to maximize profit by. you know, out of these available options, what to use and what scenario to use them in. okay, so i will give you the how-to guide of how to replicate what i'm doing to guarantee results on clients campaigns here at our firm. but i'll start out with a quick prelude and i'll go over the basic. you know nuts and bolts of how each one of these actually work, because that's the thing. at surface level, these, each of these bidding options say they and advertise they do one thing. when reality is there's, you know that the devils and the details will say that google's not lying to us. it's just, if you have no experience running these, you can be in for a surprise. so i'm going to try to take out all those surprises for you and the tip, the big things that you need to know, so you don't basically end up making less money. it all comes down to maximizing profit here and, of course, the bigger thing is as well not running out of money before you ever get off the ground. um, we're always trying to get the profitability so that the ads are feeding themselves- uh, profit going in scale ad spend after that. but if you can't get your ads profitable, you know quickly enough you're just out of money, you're out of the game. that's the bigger thing which i'm going to go over and why i use enhanced cpc bidding versus smart bidding as a whole, just to give you a quick overview prelude into what this video is truly going to be about. so, anyway, there are pros and cons to which bidding options you choose with google ads, as there is life and everything else pros and cons. with one, there is more overall potential and less overall potential. with one, there's more overall potential and another, there's less overall potential and less overall involvement with the process, ie smart bidding. however, there is also a lot of potential for quicker results and more control with non-smart bidding, if you want to call it that manual, or enhance cpc bidding on google ads as well. so the main thing is it really depends on what you want. do you want the most results or do you want less work, partikularly up front, because that's the biggest? if you want to take, you know, cut out all the crap. the biggest thing is, if you use smart betting, it cuts out the work, or the seeming potential of work, out of the process. also, of course, google advertises that they're going to do it better than you, and if you do zero work on your campaigns, you know basically, yes, uh, respectively. that is correct, but if you're not sitting on piles of money and you're not scrooge mcduck um, you may run out of money before you ever get it real. working with smart bidding is the- you know, the long story short to all this. if you use manual bidding, there's more work, but you're going to have less loss up front. with manual bidding options, i will normally spend 100 to a 1000 percent less money up front to get to a break even point with our ads as compared to using smart bidding for the few that we have done it in some occasions. the client absolutely insists on using smart bidding right away. one thing i do a lot here is set up campaign structures. you know where we handwrite ads for every keyword, hundreds of keywords, hundreds of ads. you know custom landing pages basically for every keyword, which, if you didn't know that, makes a huge difference. it works basically in every market to get you an extra fifty hundred, two hundred percent increase in leads and sales for no extra other than milk. should work once it's set up. but then what smart bidding? what happens with smart bidding is this: the cost per click goes sky high. initially because google, i guess i'll just say, assumes- at least the way that it seems to me- that if you set a- let's say you're going to use smart bidding and you're going to use um, target, cpa bidding- uh, you want a um, you, you wanna set amount to pay per lead, or you wanna set amount- uh, target revenue or target- whereas bidding, google's going to go ahead and try to get that as quickly as possible, which also means they're going to try more stuff because it's a a pro. their machine learning and algorithm goes off of some testing. it uses as much back data as they can about what's worked for other competitors in the past. you know basically all the keyword auctions. they have all the data on what people clicked on in the past and try to use that for your campaigns. but still, every ad that you write and every landing page and site that you have and process to get the person's information and order or whatever, is different and that they're going to go ahead and try- a whole bunch of stuff okay respectively. i hate to say it, but google also wants to make some money. you know it helps to make more money if, um, they're tr, it takes some. you know they. you know they need more data to figure out how to set up your ads well, but it also helps them if they have all. if they go out, it balls to the wall with the testing basically, and you'll you'll often find that the cost per click that you end up paying can be- i've seen it where it's- 10 times higher than what you know. the cost per click- quote, unquote- should be right away in order to get your ads into the auctions quicker. let me just tell you quickly how this works. all the ads that you see on google- really, there's four ads in the top of google. what happens is- and there's usually 10 to 20 people that are cycling in and out their algorithms constantly trying to figure out who's the ad that's going to get the person from being initially searching to in satisfied in the quickest and easiest manner possible, because that's what gets people to come back to google and use it again in the future. so if you are in a competitive market, they have all the back data on those partikular companies ads and landing pages and they- their algorithm- hates trying stuff new, because usually the new person coming in 90 of the time does a half-assed job. so they know, and they know that from past experience. so they have two strikes against you when you start out and also with that, they charge you significantly more per click. but also, um, if you're starting out, they won't have you show up for all the keywords like you want right away, because they slowly test you out if you use the automated bidding options, smart bidding options, basically, as i see it, they're willing to, you know, pay any price possible to get you in all the right auctions right away. so you, instead of paying, you know again- like 50 bucks a click. if you're in water damage restoration, you might pay 500 bucks a click. so you're in all the best auctions immediately. but you may not be able to afford to run your campaigns at a huge loss for three months until you know you get to your target cost per lead. that may be profitable. it may suck up 15 grand before you ever get there. you're out of business or get discouraged before you ever get started. the other thing that happens in terms of what drives the lock lead cost up with smart bidding is the keyword matching algorithm seems to be more liberal, as far as i've seen it, or even wilder, as i wrote here, uh, with the smart bidding. so, um, the you know keyword match types. you know you have your keywords and then there's the search terms report that shows what people really typed in before they clicked on your ads. the keywords are what you bid on instead of having, if you do.
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Google Ads Bidding Strategies Guide & Best Practices 2022
what's up everyone, welcome to the surfside ppc youtube channel. today i'm going to be going over google ads bid strategies. so i'm going to go through each and every bid strategy when you would use them and the ones that i use the most. so let's go. let's start over here with some of the different smart bidding strategies. so these are bidding strategies that optimize for conversions. the top four are the ones that are the most popular, that you're going to use the most often, so those are the ones i'm going to go through in detail. so you have target cost per action, which is also referred to as target cpa. you have target return on ad spend, which is also referred to as target roas. you have maximized conversions, maximize conversion value, and then enhanced cost per click. so let's go through each of these and let's start with the top two. so over here on the left, we have target cpa- target cost per action- and then over on the right, we have target roas, so target return on ad spend. so with target cpa, you're targeting a specific cost for each conversion, so an average cost that you want to pay for every single conversion through google ads, and google ads is automatikally going to set your bids to drive as many conversions as possible. now you do have some control over these different bidding strategies as far as maximum and minimum bid limits, which i'll go through a little bit later on in the video- but ultimately what you're doing is you're telling google ads. so here's an example: at the bottom, each lead for plumbing company abc- so just a fake company- is worth 75 on average. so they set a target cpa of 50 to drive profitable leads. that means for every single lead they drive, ultimately they're making 25. so your goal essentially is to get your target cpa down as low as possible so you can make as much money as possible on the leads that you're driving. now, target return on ad spend: you're targeting a specific conversion value. it's in the form of a percentage. so, for example, if we're looking at shoe company abc- let's just say they sell shoes- they set a target return on ad spend of 300. so that means they want to drive 300 in revenue for every 100 they spend on advertising. so let's come over here to google ads real quick and we're going to open up this search campaign and in this search campaign i am driving conversions. now one of the main things if you are using smart bidding strategies is you do need an active conversion in your account so you can see. if we come to tools and settings and then we go to measurement and conversions. it will open up this page here and you can create new conversion actions and you can import them directly from google analytiks and other sources as well. you can use website conversions, where you're going to have to add a pixel to your website and it's going to track all the conversions on your website. you can track actions on your app and you can track phone calls as well. so once you're actually optimizing for conversions, what you want to do is go into your campaign. so we up, open up our search campaign here and we come over to settings and you can see right here under settings, my marketing objective for this campaign is sales. so if we click on the drop down, you can see they have sales leads and website traffic or no goal guidance. so, for example, i have sales here, so i'm trying to drive conversions for this campaign. so if we come down here to bidding, you can see i have a bid strategy here and i'm actually using what's called a portfolio bid strategy, which i will go through in a minute, but let's just say, change bid strategy. you can see target cpa from the drop down here. so if we do click on the drop down, some of the different options here- so i haven't gone over maximize clicks yet- but essentially you're trying to get the most clicks within your budget. maximize conversions: so you're trying to get the most conversions within your budget. and what makes it actually a target cpa bid strategy is when we click on maximize conversions. instead of just letting google maximize our conversions, we actually set how much we want to pay for each conversion. so when i click set a target cost per action. so you can see this is optional. i can actually enter a number here and they're going to enter a recommendation based on the past average cost per conversion in this campaign. so you would go to maximize conversions and then set your target cpa. now the other one is what you would do is click on maximize conversion value and you would set a target return on ad spend. my recommended target return on ad spend for this campaign is 46, which would actually mean that i'm spending more than i'm actually making on my website. so a couple different ways to look at these. for target cpa, it's essentially maximize conversions with a value attached to it. target roas is maximize conversion value with a percentage attached to it. so that will bring us to the next two bid strategies: maximize conversions and maximize conversion value. so maximize conversions: you're just trying to drive as many conversions as possible within your budget. so, using the same example as before, plumbing company abc sets a daily budget of 250 dollars and they just want to drive as many conversions as possible while spending their daily budget. so when you use target cpa, you can actually limit how much you're going to spend, because google ads is going to do whatever they can to drive you conversions at the number that you set. so sometimes they're not even going to spend your full daily budget because they're just trying to drive you the most optimal conversions as possible. maximize conversions: you say: spend my budget and drive as many conversions as possible. now maximize conversion value: you're essentially attaching revenue. instead of just saying you know one lead, you're saying i want to drive sales and you can use a dynamic value for how much each sale is worth for your business. or you can say every single lead is worth 75 dollars, for example. so with maximize conversion value, shoe company abc is setting a daily budget of two hundred fifty dollars to drive as much conversion value while spending their daily budget. so, assuming they're selling shoes at different prices, you could say we had five conversions today at a total conversion value of, let's say, five hundred dollars in revenue. so essentially that would be a 200 return on ad spend. but the conversion value is actually gonna vary based on what you're selling. so these are the different smart bidding strategies that would optimize for conversions. now the last one is enhanced cost per click. so if we just come over here real quick and we click on the drop down again, we do manual cpc. so manual cpc, we're actually setting our own maximum cost per click for our ads. so when we're bidding on a specific keyword, i can say i want to bid one dollar for this keyword. so if i'm saying help increase conversions with enhanced cpc, what enhanced cpc is going to do is increase or decrease your bids when a conversion is more likely. so they will actually automatikally raise your bid or decrease your bid for certain keywords and just basically certain signals where google ads says this search and this person is more likely to convert. so basically it gives you a little bit more automation to drive conversions while actually still controlling your own bids based on what you're targeting. so i would not really recommend using enhanced cpc anymore, because what you're able to do is use something like target cpa or target return on ad spend and you can set maximum bid limits, which is a much better way to control your campaigns. now, next are bidding strategies for clicks, and these are pretty self-explanatory. so you have maximized clicks and you have manual cpc. so maximize clicks is going to drive as many clicks as possible within your budget. so, using the same examples, plumbing company abc sets a daily budget of 250 and they just want to drive as many clicks as possible while spending their daily budget.
AdWords Auction; How Keyword Bidding Works
hi, i'm hal varian. i'm the chief economist here at google. google uses an auction system to rank the ads that appear in the search results page and to determine the cost for each ad click in this tok. i'll take you through a general overview of how the ad auction works. first and foremost, google users want ads they see to be relevant. they don't want to be bothered with ads that aren't closely related to what they're searching for, and advertisers want to show relevant ads so users will actually click on them. meantime, google wants to provide a good experience for users and a good value to advertisers so they come back and use their services again in the future. now i'd like to walk you through what a traditional auction looks like. say, we have four advertisers competing for space on the search results page and each has indicated a different amount they're willing to pay for a user to click their ad and visit their website: four dollars, three dollars, two dollars and one dollar. i refer to these amounts as the bids. now, in a traditional auction, ad positions will be determined exclusively by bids. the highest bidder would get the first position, second highest bidder the second position, and so on. google uses a variation of what's called a second price auction. and in a second price auction the buyer doesn't have to pay their full bid. they only have to pay the amount of the next highest bidder below them. so in this partikular case, the first advertiser was bidding four dollars, but they'd only have to pay three dollars, which is the bid of the second highest advertiser. same thing applies to advertiser 2 and to advertiser 3.. this design allows each advertiser to bid their true maximum willingness to pay for a click, but they only have to pay just enough to beat the competition. now in our google auction, advertisers only have to pay when they actually receive a click and the order isn't based just on bids. why? because we want to show more useful ads in a higher position on the results page, because users want to see relevant ads. advertisers want to present relevant ads to users and google wants both advertisers and users to have a good experience so they come back and continue to use our system. so we consider some other factors in addition to an advertiser's bid. the first factor is your expected click-through rate. this is our prediction of how often your ad will be clicked on when it's shown all across google. we rely on user feedback to drive decision making and user click-through rates tell us what google users really respond to. by allowing users to vote with their clicks, we have millions of people who are helping us to decide which ads are best for each search query. the next factor is your ads landing page experience. an ad is only useful to user if the landing page it leads to helps them find what they're looking for. a highly relevant landing page yields a higher score. what does a high quality landing page look like? well, it should have relevant and original content that helps a user complete their task. it should be easily navigable and be transparent about the nature of your business, how your site interacts with a visitor's computer and how you intend to use a visitor's personal information. another factor that's involved is add relevance. google determines ad relevance by analyzing the language in your ad to determine how well relates to the query. this is a way to measure the ads relevance to the user search and to make sure that only useful ads are shown. it also prevents advertisers from simply paying their way onto search that's unrelated to their product or service. your expected click-through rate, the landing page experience and the ad relevance are all factors that describe the quality of your ad. we also consider the expected impact of any ad formats that may show with your ad. add formats or enhancements to search ads that more prominently show users information about your business- things like a phone number or site links or your website's domain and the ad headline. advertisements with these formats give users more information and more reason to click on an ad. so google combines your bid with multiple quality factors- the click through rate, the landing page, the ad relevancy, as well as the expected impact of ad formats- to calculate a score for your ad called ad rank. let's go back to our four sample ad buyers and see how their ad rank compares. here are four advertisers. they're bidding dollars, three dollars, two dollars and one dollar. their ads had different quality: low, high, high and medium. they also imply different formats with varying impact. first ad doesn't have any formats enabled, so it has no expected format impact. the second ad is only eligible for one format and has a low expected format impact. and the third is eligible for several extensions and garners a high expected impact. and for the last ad is medium. so in this example, the first ad has an ad rank 5.. next ad has an ad rank of 15.. third has an ad rank of 20 and the last ad has an ad rank of 8.. it's this ad rank score that determines ad position in the results page and, in addition, only ads with sufficiently high rank appear at all. so with this ad, with an ad rank of 20, it gets first position, even though it has a lower bid. why? because of its quality and formats. the second highest ad rank is 15, so that ad gets position two and the third highest ad is eight and it lands in position three. the advertiser up here, who's bidding four dollars, has such a low quality and format impact that it doesn't get a position on the page at all, despite having the highest bid. so now we know how the ads are ranked, but how much do you actually pay for a click? will you pay the minimum amount that's necessary to maintain your position and any formats that are shown with your ad? so let's get back to our ad rank table and tok about the advertiser in position one. he's competing with the advertiser position too, so the amount he has to pay is going to be just enough to beat the ad rank of the advertiser in position two. for example, although he bid two dollars, he could have been as low as, say 173, and he would still have outrank the advertising media below him. so that's what he'll pay for a click: 1.73. similarly the amount that advertiser position two has to pay as a minimum needed to beat the ad rank of the advertiser in position three, and so on down the page. so in this example the top ranked advertiser winds up paying less than what he was actually willing to pay for a click, and it's the same for the other advertisers as well. all right, let's tok about. advertisers can influence their cost per click and ranking in the auction. by improving your quality or adding ad formats, you can potentially improve your ad position. you could also end up paying a lower cost per click. so let's take a look at the advertiser in position 2.. suppose she improves her add a landing page. now her ad grant goes up to 18.. her position here doesn't change. but what happens to how much he pays per click? before, even though she bid three dollars, she only needed to bid, say, 268 to beat the ad rank of the advertiser immediately below her. so that's what she paid- 2.68 cents. but now that she's improved the quality of her ad, assuming everything else stays the same, she could have been as low as say, 2.42 cents, to beat the advertiser below her. so her cost per click goes down to 242. why? because the price an advertiser pays is partially based on her ad quality. now imagine this advertiser wants to move to higher position, so she increases her bid to 350. now her ad rank goes up to 23. that's enough to give her a highest ad rank and to move her into position one. and what did she pay? the amount that would be just enough to beat the ad rank of 20 be lower, assuming everything else stays the same. that might be, say, 3.38 cents in this partikular case. so to wrap up, why do we handle ad ranking and pricing this way? like i said at the beginning, it all goes back to the ecosystem: google, our users and our advert.
Google Ads Bid Strategies Explained | 2022 Guide
google ads bid strategies. that's what we're going to be toking about in today's video on the teach traffic youtube channel. it can be really confusing to know which bid strategy to use for your campaign, so i'm going to cover each of the different bid strategies, why you would possibly consider using that one and also which one i personally use in my own campaigns and advise others at the teach traffic community. that's what we're going to be toking about. so big picture. essentially, what you need to decide on first is if you're going to do google's manual bidding or automated bidding, as it sounds. manual bidding is where you decide the maximum that you're willing to spend on a cost per click basis, and obviously it would differ for the different keywords that you're bidding on. but you are tinkering around with those different bids versus google's automated bidding, where you hand over the rains- the bidding rains- to google and they are going to uh decide what to bid on for a click and obviously they use all their different data points to make that decision of what to bid on. all right, i'm not going to spend time toking about manual bidding in this video, because it's pretty self-explanatory. what i'm really going to focus on are all the different automated bid strategies that you can choose from, and how you decide on which different bid strategy to to choose really depends on what your objective is, all right, what your goal is from your campaign. so if your goal is to, um, get more leads, or get the phone to ring, or just basically bring in more, more leads, then the bid strategy that you would possibly consider would be either maximize conversions or target cpa bidding. this is sort of big picture. if your objective is to get more sales- so you're in e-commerce and you're trying to actually generate revenue online- then the bid strategy you may consider choosing would be maximize conversion value or target row as bidding. if your objective is clicks, then you might choose maximize clicks. or if you're just trying to get in front of a certain number of eyeballs, so reach a certain number of people, then you might consider target impression share. all right. so i'm going to go through each of these in a bit more detail so that it will be have a bit more clarity, and it's probably best if i go through and i'll show you where to find these in your google ad account. so here i am in my google ad account and actually the bid strategy that i've chosen for this partikular campaign i'm running. uh, if you're unsure, we can just change our columns and we can go to our attributes and we go to bid, to strategy type. here we go here and i am doing maximize conversions. okay, so how we change our bid strategy- or look at all the possible bid strategies to choose from- is we have to go to the settings at a campaign level. so i go into my campaign and i go into settings and then there's the bidding section down here. so if i click on this just to show you all the possible bid options you can choose, i'm going to go to change bid strategy. i'm going to do this and if i click on this, these are all the automatik different automated bid strategies i'm going to tok about- and obviously this is manual cpc bidding, which we're not going to do. so if i hover over maximize clicks, as the help shows, it says it sets bids to help you get the most clicks within your budget. personally, i'm not a fan of maximize clicks because i would prefer google's algorithm to optimize for what is my ultimate goal, which is sales or leads or whatever. i um, whatever it is my conversion objective, okay. so i'm very, very rarely use this partikular bid strategy- maximize conversions, which is the one i'm currently running. uh, so this is one of my preferred options, which is, as the help says here, is to set bids to help you get the most conversions within your budget. now, the risk with maximized conversions is that it's going to get, as is trying to get as many conversions as possible, almost regardless of the cost. okay, so it can kind of go a little crazy with your bids, and so just warning when, if you were to use maximized conversions, that the bids can be quite high because google's just doing everything they can to get as many conversions as possible within the constraints of your budget. okay, the default setting is for this target cost per acquisition to not be clicked, but you can select this where it's, which is the target cpa bidding, as i mentioned earlier in the video, which tells google: i want to get as many conversions as possible and this is my target cost per acquisition, this is my target cost per lead that i want you to try and get all right. so very, very often we use this big, this bid strategy. i'm actually a big fan of using this bid strategy, especially the target cpa option, because it's pretty good actually at achieving that. however, your account does need a certain amount of data in order for google to have enough data points to really optimize for this. the risk is, if you set your target cpa too low- because who doesn't want cheap leads? right? so i might set my target cpa for, you know, five dollars, and google then is very, very constrained in what it will show impressions for and clicks, and so the risk, if you set your target cpa too low, is that you don't get any impressions and you don't get clicks, etc. okay, so, um, i, my personal preference, is to set my target cpa to be higher than what i'm actually willing to pay for, just to kind of give google enough rope to to find my target customers, and then, over time, i could possibly reduce it. okay, the other type of bid strategy is maximize conversion value. all right, so that's like the equivalent for maximized conversions, but it's it's optimizing for a conversion value, and then you can also set a target return on ad spend. now, this is by percentage, so if you're in e-commerce, you probably got, you know, maybe you need to make three times revenue in order to cover your cost. so you would set your target row as to be like 300. we've had situations where we've set our target row as to be 100, which means we just kind of want to break even because there's a recurring element to their partikular product and they're willing to lose money on on the front end of the sale. but obviously, what you set your target row as is a very individual decision that you need to make. just be mindful that the higher you set your target row, as possibly the less impressions and the less clicks you're going to get, because google's really trying to get a very, very profitable return on ad spend. okay, so that is how you apply it in your account. and the other one is target impression share and essentially it's you know, sets you, it tells you here automatikally set your bids to increase your ads chances of appearing in the search page and you can select where you want your ads to appear: anywhere on the results page: the top of the results page or the absolute top. so the difference between top of results versus absolute top- the top is above the organic listings- versus the absolute top- is the number one ad spot. all right, so you can say: yes, i want to be the top of the results page. the percentage impression share i want to target, so you might say 75, but, google, don't go crazy and set a maximum cpc bid limit. i don't want to go above eight dollars or or whatever. it is okay. so these are the different bid strategies that i would um, that are available to you and, as i said in the beginning of the video, the ones that i recommend. maximize conversions or maximize conversion value with this checkbox tiked of target cost per acquisition, etc. so you might be wondering: when do you decide to implement google's automated bidding? and that's a really good question. if, first of all, if you've got a brand new account, i would not suggest starting with google's automated bidding. my personal preference would be to start with manual bidding first. get some data under under your belt, get some conversions happening, hopefully, identify what are the obvious negative keywords that you're going to a