Maximize Conversions : A Google AdWords Smart Bidding Strategy

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AdWords Bidding Options

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Maximize Conversions

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Maximize Conversions

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By David Smania

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For most marketers in PPC, conversions are the ultimate goal, and we spend a lot of time optimizing for this outcome.

Google AdWords recognized this a few years ago and introduced a new smart bidding strategy called Maximize Conversions.

This setting takes control of your account and automatically sets bids on a per-auction level to drive the most conversions for your daily budget.

AdWords Bidding Options - Maximize Conversions

Like other smart bidding options, Google uses advanced machine learning and predictive analytics to optimize conversions.

In this particular case, it runs these quick calculations during each individual auction, matching bids to the context of the search and other data signals present during the auction that suggests a strong possibility for conversion.

The signals could include a user’s device, location, time of day, or any remarketing list they belong to.

By optimizing on a per-auction basis, this smart bidding strategy brings new levels of precision, which can lead to increases in conversions and decreases in cost per acquisition (CPA).

As with other smart bidding options, conversion tracking needs to be set up for this to work.   In addition, a campaign set to Maximize Conversions needs to operate from its own budget.

This bidding option will attempt to spend the full daily budget, so if you’re currently underspending, expect significant increases.

Maximize Conversions Advantages

  • With this smart bidding option, Google automates the focus on conversions over clicks.
  • Google positions your bids to win by analyzing conversion signals that are not accessible to advertisers.

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“Maximize Conversions takes control of your account and automatically sets bids on a per-auction level to drive the most conversions for your daily budget”

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Maximize Conversions Advantages

  • With this smart bidding option, Google automates the focus on conversions over clicks.
  • Google positions your bids to win by analyzing conversion signals that are not accessible to advertisers.

Maximize Conversions Disadvantages

  • Google will focus on conversions, but will little regard for cost-per-acquisition (CPA).   It’s like removing your max bid and allowing Google to calculate it for you on the fly. This can be very expensive, especially for products or services with low margins.

As an example – Ad 1 could drive 50 conversions at a CPA of $10, while Ad 2 could drive 40 conversions at a CPA of $5.   Because this smart bidding option focuses on conversion volume over CPA or ROAS, we could end up over-paying as Adwords would spend the daily budget optimizing Ad 1.

  • Quality Score is disregarded.   Google is optimizing for conversions over CTR (a big factor for QS), so choosing this bidding option puts a great deal of faith in Google, and you a lot of control as a result.

In Conclusion

AdWords - CRO - ConversionsMaximize Conversions is an interesting bidding option that optimizes bids to help you gain the most conversions possible for your campaign while spending your daily budget.

Adwords uses machine learning to position your ads based on several buy-signals at the time of each auction.

Smart bidding choices should always align with your company goals. If your focus is on a return on investment, then Target ROAS or Target CPA could make better sense.

Like Maximize Conversions, these other strategies also auto-set bids during each auction, but the goals are very different. For instance, focusing on the return on ad spend (ROAS) or cost-per-acquisition (CPA) rather than spending your full daily budget to maximize conversion.

As with any AdWords smart bidding feature, you should always perform a cost/benefit analysis and proceed slowly.

Create an isolated test that you can compare to manual CPC or any other bidding strategy that has been in place for a while.

After a period of 30 days, review the results to see which is performing better for your company.

Next Up – Enhanced CPC

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