Google Ads Tutorials: Evaluating Smart Bidding performance

Google Ads Tutorials: Evaluating Smart Bidding performance


[light music] Smart Bidding in Google Ads allows you to manage your bids effectively and efficiently. It uses advanced machine learning to help you tailor the right bid to each and every auction. To have an accurate understanding of your
Smart Bidding performance, it’s important that you don’t run your analysis too early. The recommended timeline to evaluate
and test bidding performance is as follows: Implement Smart Bidding and then consider the learning period. The learning period is the period of time in which Google Ads gathers the performance
data it needs to optimize your bids. When a bid strategy is in the learning period, limit major changes to the campaign as much as possible. For example, avoid budget changes, major keyword additions, and landing page swaps. This is because the bid strategy is
currently adjusting to the campaign set up. It typically takes one to two
weeks for a bid strategy to adjust, although this largely depends
on the volume of conversions. Smart Bidding should work for all campaigns, but ramp up tends be faster when
there’s more conversion volume. Once the learning period has ended, establish a two to four week post-control period. And lastly, consider your conversion lag. Most clicks don’t result in immediate conversions, since customers may interact with your
ads across multiple searches and devices. After you’ve allowed for the Smart Bidding
algorithm to learn and for your conversions to register, you can begin to analyze performance
through one of these three methods: Drafts and experiments, target metric comparison through the bid strategy report or pre/post metric analysis. If you tested a bid strategy by running an experiment, you can understand the results from the scorecard
that populates at the top of your experiment. If you added a bid strategy directly to your campaign, the recommended method to evaluate
performance is to use the bid strategy report. This report allows you to understand how
your bid strategies have performed for key metrics. From the campaigns tab, use the “Bid strategy type” column
to access the bid strategy report. View the campaign’s bid strategy status at the top of the report. This campaign is currently active rather than learning. Here the campaign Target CPA is set to $5.00. Average Target CPA is the average target that your bid strategy optimized for over the selected time period. In this report, the average is higher than $5.00. This is because the average CPA
includes any device bid adjustments, Target CPAs set at the ad group level, and any changes made to your
strategy target over this time period. Actual CPA is the actual cost of a conversion
that your bid strategy was able to achieve. We see that the actual CPA is lower than the Target CPA of $5.00. When viewing the graph, don’t focus on daily performance. View at least a week long time period to understand CPA trends. The yellow triangle signifies various changes
that affected the bid strategy during this time period. For example, during this time period the campaign’s
bid strategy was limited by budget. The bid strategy report indicates any
conversion lag impacting your campaign. It differs from the Time Lag report, since it’s specific to the campaign using Smart Bidding. On average, in this campaign we’re reviewing, it takes 23 days for customers to convert. To accurately evaluate performance, factor out this conversion lag
reported in your bid strategy report. A third way to compare performance
is by using a pre/post evaluation method. This is the most challenging way to
compare the performance of Smart Bidding, since there are many additional variables
that may be influencing these metrics. For example, if you choose to compare
performance from month to month, there may be seasonality differences or auction
dynamics that don’t render it a true comparison. The bid strategy report will provide the most
stable picture of your Smart Bidding performance. For more step-by-step videos on
Google Ads implementation and optimization, check out Google Ads Tutorials. If you have any questions, or for more information
please visit Google Ads Help. [music continues]

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