Several updates awaiting Google Ads have been introduced at Google Marketing Live. One of these concerns Smart Bidding, which uses machine learning to set the optimal cost-per-click (CPC. Most recently, you’ll be able to reach this optimum cost by using a maximize conversion value strategy.
There is a new addition to classic smart bidding strategies in Google Ads – bidding to maximize conversion value. So far, the strategy can be used only for bids in Smart Shopping.
How does it work?
This strategy can help you maximize your conversion value within your budget. By using machine learning, like other smart strategies, Google then optimizes your ad or campaign settings reach your goal.
Machine learning analyzes historical events related to your ad or campaign to set the optimal CPC bid to display the ad. This way, you should get the most valuable conversions for you when you spend your budget.
Check your previous settings
Before you start using this new strategy, check your current settings, especially those related to your budget. This strategy will try to run out of your entire budget, so your spending may rise unexpectedly.
Return on investment goals should be checked as well. You can include these in your strategy (such as return on ads spending, ROAS).