‎Google Releases “Smart Bidding” To Set the Ideal Bid for Each PPC Ad

 

Google makes the overwhelming majority of its revenue from its Adwords PPC advertising. No other revenue stream even comes close.

So of course, they’ll pay the most attention to it out of all their various services. They have investors watching their earnings, and they don’t want to report those earnings aren’t meeting expectations. That could cause their stock price to fall which would cost Google billions.

With That in Mind, Google’s Introduced “Maximize Conversions” to Adwords

What is “Maximize Conversions?” It uses smart bidding to automatically set the right bid for each PPC ad auction.

…But doesn’t that sound a little fishy? Google, who has a substantial financial interest in seeing you spend more, will automatically set how much you bid?

Now, of course it’s in their interest to give you good results for the money you invest. Because, if you don’t, you won’t keep spending with Google. You might move over to Bing.

But then again, Google stands to profit. And research has found it generally costs you more for the same results than Bing.

So what’s the reality? Should you use this feature? Should you insist your internet marketing company use it?

Let’s find out.

One Agency Generally Experiences Positive Results…With a Small Catch

Seer Interactive does its fair share of Adwords campaigns. The decided to put this “Maximize Conversions” feature to the test. And this is what they found:

  1. In 85% of their tests, clients experience better results with Maximize Conversions
  2. During the first two weeks of the campaign, results got worse while Google learned what to do. However, results improved during the final two weeks, ending up in a net gain.
  3. No patterns existed by client or industry type. They concluded you need to test for yourself to see what happens.

Google also notes that decking company Trex experienced a 73% increase in conversions with the new feature, while also getting a 42% decrease in cost-per-acquisition. And interestingly, Trex was a customer of Seer Interactive at the time.

Test and Be Careful

Google’s likely somehow making more money off this “Maximize Conversions” feature. But initially, it looks like they’re helping you improve your results too (in most cases).

So consider asking your SEO company to test the feature. But do understand, that while it’s likely you’ll experience positive results, there’s no guarantee.

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