The newest Smart Bidding option aims to increase conversion volume and will spend a campaign’s daily budget in pursuit of that goal.
Smart Bidding strategies in AdWords use machine learning to adjust bids tailored for every auction. The algorithms take a number of factors into account, including, of course, the type of bid strategy. The newest addition to AdWords Smart Bidding strategies is Maximize Conversions.
From this week’s announcement:
Maximize Conversions will help you get you the most number of sales from your existing budget by factoring signals like remarketing lists, time of day, browser and operating system into bids.
Maximize Conversions also takes historical performance into account. Unlike Target ROAS or Target CPA bid strategies, Maximize Conversions is concerned with conversion volume rather than return on investment goals. Maximize Conversions will spend the daily budget in pursuit of more conversions.
Google says decking company Trex saw a 73 percent increase in conversions, a 59 percent increase in conversion rate and a 42 percent lower CPA in its first test using Maximize Conversions.
A few things to note for Maximize Conversions:
- AdWords conversion tracking needs to be set up.
- The campaign must have its own budget, not share a budget with any other campaigns.
- Maximize Conversions will stay within the set budget but will aim to meet that daily budget. If a campaign is currently under-spending, expect to see spend increase when switching to Maximize Conversions.
Maximize Conversions is now listed as a Bid strategy option under campaign settings in Search campaigns.