Google AdWords is specifically using advanced machine learning via artificial intelligence in its automated bidding algorithms. Target CPA (Cost per Acquisition) bidding, Maximize Conversions, and Maximum Clicks are just samples of new bidding algorithms that can be used in AdWords accounts.
Each algorithm has a place and function based on a client’s need and metrics of success. However, I have found that in some cases using these machine learning driven algorithms that cost per click increases as does cost per conversion.
The value of an account manager in this automated environment is to provide the needed checks and balances to assure that your profitability goals are being met in AdWords.
As Google integrates more machine learning applications in Google AdWords for suggestions, bidding, and account management, it now becomes even more important to have a business-minded AdWords experienced expert overseeing your account to achieve the best results at the lowest cost for your budget.
Machine learning, it is the new buzz in our industry. Machine learning is using computers via artificial intelligence to predict actions. Machine learning can be used for Smart Bidding in Google AdWords and can even predict performance of activity based on your keywords and budget.
With products like Universal App Campaigns and Smart Bidding, it’s now possible to use this data to help deliver millions of ads customized for your customers, and set the right bid for each of those ads–in real time.
If you are using the new Beta AdWords interface, the Opportunities tab recommendations are personalized suggestions for your account based on machine learning.
Even if you’re not using these AdWords innovations [listed above], you’re still seeing the benefits of machine learning. Google uses information about search queries, historical ad performance and other contextual signals combined with machine learning, to predict whether or not someone will click on your ad. This predicted click-through rate helps determine the selection, ranking and pricing of your ads–meaning machine learning is already working to show the right ads to the right customers.
This means that even if you were not aware that you were embracing machine learning, Google AdWords has embraced it for you, to make account management easier and to provide more insights and analytics to assist you in better managing your ad account.
Here are some ways that Google is leveraging machine learning for your benefit in AdWords.
Smart bidding and bidding to increase conversions
Ad rotation, ad creation, and optimization
Opportunities and account suggestions
Google AdWords is embracing machine learning in many account management areas. Not only will they will making keyword, bid, and budget suggestions, but now AdWords will even be self-creating ad text for your programs to supplement your own created ads.
To leverage all that AdWords offers for your businesses benefit, I invite you to visit our website to find out more about how McCord Web Services can help you with your AdWords management needs.
To help you fuller understand the new terminology in your Dashboard report and the changes that Google has made to drop the Average Position metric, here are the definitions of these two new important terms that appear in your reports.
Explanation of Search Top IS (Impression Share)
Search top impression share (IS) is the impressions you’ve received in the top location on the search result page divided by the estimated number of impressions you were eligible to receive in the top location. Use this metric to bid on the top page location.
The top location is anywhere ads appear above the organic search results. Eligibility is based on your current ads’ targeting settings, approval statuses, bids, and quality.
Explanation of Search Abs. (Absolute) Top IS (Impression Share)
“Search absolute top impression share” is the percentage of your Search ad impressions that are shown in the most prominent Search position.
Absolute top impression share = absolute top impressions / total eligible top impressions
What this means for you:
By using two new metrics, Google more clearly details where your ads fall in the competitive auction for first page placement. Google no longer shows when your ads appear underneath the organic search results in position 6-10 or on the second page of search results.
By reviewing these new metrics, you can identify if your bids, budget, and quality score which are used to determine ad rank are high enough to support ads appearing in the positions above the search results either in any position or the very top position.
If you are not budget restrained, meaning that you have additional marketing dollars to spend, here is a quick primer on how to know if it makes sense to increase your Google Ads spending budget.
First, look at your campaign level results and sort the data for yesterday. If you did not spend your full budget yesterday, raising your daily budget will have no impact. Make sure to check a few days on top of just yesterday to assure that you are seeing enough results to be sure.
Second, if your program is profitable for you meaning are getting leads which leave room for profit, then the rule of thumb is to increase your ad spend as long as you have a positive ROI or return on investment. Make sure to look at the average cost per conversion when you evaluate what your leads cost versus what you make per lead.
It is important to have an awareness of important facts that are unique for your business such as one out of every ten leads makes a purchase or becomes a regular customer and regular customers typically will stay five years with us and have a lifetime value of X.
I do not recommend raising your ad spend budget without thought to assure that Google Ads is an investment in your growth and not an expense.
That being said for accounts that have taken the approach of increasing the ad spend without a limit while there is still positive ROI, the results can be absolutely, positively, mind boggling and wonderful.
Search engine optimization is not for every website. Although search engine optimization can really improve the organic search results for some websites, there are a couple of considerations when search engine optimization should not be considered and maybe a full site redesign may be a better investment of money and time.
When not to do search engine optimization:
If your site is created in a template and the site layout becomes broken when new content is added.
Your site looks funny in browsers other than Chrome and Firefox.
You have a site designed using Flash or tables for your layout.
Your website looks dated or non-professional.
As search engine optimization is not inexpensive, in some cases the money that would have been spent on search engine optimization would be better spent on a new search engine friendly design with built-in optimization features.
I have been managing Google AdWords accounts for around thirteen years. This depth of experience has given me a unique point of view.
Here are a few nuggets to share with you on the topic of mobile.
1. Advertising in the mobile space has to be a part of your Google AdWords strategy. For some clients all leads will come in via mobile, for others just a part, and for some none.
2. If you are a lawyer, dentist, or a doctor where you have a mix of patient age groups, you will see strong activity in the mobile ad space and strong conversion activity there.
3. If your product or service deals with immediate decisions such as an animal emergency room your activity will be in the mobile ad space and nearly all of your lead conversions will be by phone.
4. Even if your business is tech software, know that although you may not get leads from mobile, early decision making and research is being done initially on mobile. It is better to control your ad spend on mobile in that case instead of totally moving out of mobile.
5. There is no single combination of what works best for businesses in mobile at this time and there does not seem to be one pattern of behavior that is repeated across diverse industries. What I have definitely seen is that mobile should be a very important part of every AdWords program.