Pay-per-click (PPC) advertising has become a key strategy for businesses to drive traffic and conversions. Automated bidding is one of the most hotly debated techniques in PPC management. Automated bidding analyses the results of many bids in real-time with machine learning, and optimizes your ad spend for every single outcome you want. Although it has several advantages, there are still some disadvantages advertisers should be aware of. Here, we break down the benefits and drawbacks of automated bidding so you can determine whether or not this is a suitable strategy for your campaigns.
What is Automated Bidding?
Automated bidding is a tool within platforms such as Google Ads, where algorithms decide how much the best bid for your ads would be based on specific goals you set. Automated bidding removes all the guesswork from bid management using data signals based on past performance, paving a path for maximized clicks, conversions, or return on ad spend (ROAS).
Pros of Automated Bidding
Timesaving
The primary benefit of automated bidding is time savings. For campaigns with many keywords, manual bid adjustments can become highly time-consuming. Automated bidding takes care of this, thus providing time for planning the tactics.
Real-Time Optimization
Automated bidding systems continuously analyze data and adjust bids in real time, keeping your campaigns competitive during market fluctuations.
Better Use of Data
Automated bidding saves time and money. There are plenty of internal and external factors that go into choosing the ideal cost per click. It increases the accuracy of bids and the performance of the campaigning.
Focus on Campaign Goals
The system can help advertisers bid according to specific aspects like conversion, clicks and the like which serves as a goal. Such a laser-focused approach helps in improving ROI.
Cons of Automated Bidding
Lack of Control
The ability to set individual keyword bids is one of the disadvantages you would have with it. This can become an issue if some keywords require specific strategies.
Over-Reliance on Algorithms
Automated bidding uses machine learning models which are only as good as the data they get. Bad data can lead to poor bidding decisions.
Not Ideal for Specialised Advertisement
Automated bidding excels in learning from aggregated data but may struggle with highly niche businesses or small campaigns due to limited data availability
Cost Management Challenges
Automated bidding will try its best to maximize results for you, but it may not necessarily do so concerning your budget. However, this still requires someone to intervene when spending exceeds the allocated limits.
When to Use Automated Bidding
Automated bidding is optimized within campaigns with clear targets, history, and the need for scale. For instance, a Gurgaon PPC advertising agency can employ automated bidding to oversee multiple campaigns across industries for clients focusing on objectives such as lead generation or enhanced visibility in the market space.
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Final Thoughts
PPC campaigns improve with increased efficiency, and automation is a game-changer for bidding but it’s not a silver bullet solution. Before you decide whether to use automated bidding, be clear about your campaign goals, what audience you want to reach, and how good the quality of your data is. If you’re a business or agency managing multiple campaigns, it usually works best to mix automated and manual strategies.
Finally, if you are trying to perfect your PPC and master the art of harnessing automated bidding, nothing can be better than a reputed PPC advertising agency in Gurgaon.
