How Can Automated Bidding Benefit Advertisers?

Ever wondered why automated bidding is so commonly used by advertisers?

This article will give you all the information you need about automated bidding. 

Automated bidding helps to save advertisers time while also increasing efficiency. It removes all of the unknown from setting bids, instead, placing the bidding control into the hands of Google.

Google will automatically set bids that are based on the likelihood of an ad resulting in a click. 

There are lots of different types of bidding strategies, meaning that there will always be one that benefits advertisers as these strategies can help to increase conversions and visibility. 

Let’s have a look at how automated bidding can benefit advertisers! 

What Is Automated Bidding? 

Automated bidding refers to a Google strategy for advertising. It is a strategy that is used to maximize advertising results. 

In order to choose a bid, Google will analyze all of the data on your device including the geographic location, demographic information, time of day and many other things.

Through this information, Google will decide how much you should be charged per advert. 

In order to take part in automated bidding, you must create a strategy first. It will have to be a portfolio strategy.

If you do this, then you can apply this to your ad group or campaign in order to take part in that specific bidding strategy.

Automated bidding allows you to place accurate bids without the need to work them out for yourself and update you manually.

It is all done by Google behind the scenes.

Pros Of Smart Bidding 

There are many pros to smart bidding using Google ads or something similar.

These Pros Are:

  • Smart bidding increases visibility and brand awareness.
  • Smart bidding will encourage more traffic to your website, increasing footfall and popularity.
  • It will also help to boost conversions. 

Cons Of Smart Bidding 

While automated bidding is great for lots of different reasons, and is a very common choice when it comes to bidding, there are some downsides to using smart bidding.

These Are: 

  • Google doesn’t have detailed understanding of your business dynamics, it can only know what it sees in the statistics. 
  • Google ads does not have any control over your budget. 
  • There will be limited goals for the advertising campaign. 
  • The Google data might not be completely reflective of the target audience. 

How Does Automated Bidding Benefit Advertisers?

There are many automated bidding strategies that benefit advertisers. Let’s have a look at them! 

Maximize Clicks 

The bidding strategy that aims to maximize clicks uses automatic bidding to generate more traffic and maximize the amount of clicks that the advert receives. 

This will not include follow through or purchase, instead focussing only on maximizing the number of clicks that you receive.

This bidding strategy will bid for the highest number of clicks it can achieve for the lowest price. 

Target ROAS

When you set a target ROAS, you can base a bidding strategy directly on these conversion values.

You will set a maximum bid amount using this strategy. This is a good way to increase your traffic if you are on quite a tight budget.

It protects you from overbidding. 

Target CPA Strategy 

This strategy sets up bids that will give you the most conversions possible within your target spend.

You will get the highest conversion rate for each bid through this strategy. 

Target Outranking Share 

Using the target outranking share strategy, you will be able to increase the visibility of your competitors.

You can do this by choosing them as targets for your campaign.

This will allow you to control how often you want to beat them in the ranking.

Using this strategy, you will be able to improve your search rankings without having to spend too much money on advertising. 

Target Impression Share 

This is a great way to get your advert to the very top of any page.

Failing that, you will definitely get into the Google search result using this strategy.

When you want your advert to be seen by lots of different people, this is the way to go! 


The cost per click strategy is great. It is best when it is used as a manual bidding strategy while still using the features of automatic bidding.

Introduction To Automated Bidding 

If you want to start automated bidding, there are a few things that you need to do. Let’s take a look!

  • Open an AdWords account. Once you have done this, you will be able to set up your first advertising campaign. You will be able to choose certain keywords that you want to target and how much you want to spend. 
  • Your ads will then be displayed in relevant searches. 
  • When you start getting clicks on your adverts, you will start paying for each click that you get. 

You will need to make sure to carry out some research before you set up an ad campaign.

Google Ads requires time to get used to, but when you have it in the bag, you can make quite a substantial amount of money from this. 

You choose your budget when it comes to automated bidding.

You can choose to pay $1 per click, or more depending on your budget. It doesn’t even have to be by clicks, instead it can be focused on generating impressions, conversions or views. 

You are able to set individualized bids for every keyword or advert so, through this, you can have a lot of control over where your money is going. 

However, through using the automated bidding system in this way, you will be spending quite a lot of time on setting these bids.

It also relies on the fact that you should know what makes a good and a bad bid.

Final Thoughts

Automated bidding benefits advertisers in lots of different ways.

It takes the pressure off of the bidding process and instead places the focus for the advertiser on being able to put their time and efforts into other areas.

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