Episode Highlights

  • Via Search Engine Land
  • The strategy uses your daily budget as a guide and returns as much in conversion value as possible.
  • You can set a ROAS goal in combination
  • Available for search campaigns now
  • Shopping “smart shopping” is sort of doing this already
  • You’ll need to pass a conversion back (e-commerce or goal value) to use it.

Transcript

Rick: Very cool. New smart bidding strategy in Google Ads as well. This is basically a smart bidding strategy that tries to maximize essentially the conversion value that comes back. I think to Juan and me, we spoke about this before, it feels a little bit like a lot of these smart bidding strategies are starting to overlap a little bit, but essentially what this says is set a budget and we’re going to bring back as much value as we can with that budget. If you’re e-commerce, that’s very straight forward. If you’re passing back, you know, revenue from transactions. Now, if you’re on the lead gen side and you’re more driving forms submits and calls and that sort of thing, this is when you start thinking about that best practice of can I assign a value to a phone call, a form submit, or something like that.

Rick: Even though there isn’t a direct revenue that’s coming into the business, by assigning those values now you’re going to pass that back to Google and have yet another mechanism to allow Google to use AI to optimize your campaign bidding for you so that you can bring back the most value. My take on this is if you think a phone call is worth twice as much as a form submit, it’s almost unimportant what you assign the value of each if you’re using this particular strategy, but just make sure, let’s say your phone call is worth $10 and your form submit worth $5. Now you’ve passed data in enough to let Google say, “Hey, if you can focus on getting me phone calls, great, they’re worth more. But overall, you know this is the relative value of things.” So it might be one approach to using this when you’re in the non e-commerce space.

Juan: Yes.

Rick: Then the last piece of that, and you can see it up on screen now, is it looks like you can set a target row OS and all this. So this feels a lot like row OS bidding, and what we did mention actually on this is very important. This particular bidding strategy I think right now is just available on, is it search campaigns only? Yes, in search campaigns only now. Really it kind of exists already in shopping. That’s the smart shopping campaign. But this is on the search side now only available.

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