Learn how to use Google’s Smart Bidding like a Pro! (2023)

One of your biggest goals is the visibility of your business, and what you can't see, you can't sell. That is why creating SEM campaigns is a good strategy to be able to compete in online auctions. 

Smart bidding in adwords is essential for campaigns to have a good performance and for all sectors to be able to make their businesses known to the right target audience.

Because more than visibility, it's important who you reach because only then you can increase the conversion rate of your online business. 

So that you have more light on the subject, let's start at once to explain what smart bidding is and what recommendations you can take into account to do it like a pro. 

What is smart bidding? 

According to the definition of the official Google Ads platform, smart bidding aims to bring together a series of strategies that can give greater profitability to businesses as well as obtain a higher conversion rate through the bidding system. 

That way you can increase the value of the ads, as well as position your advertising campaigns for certain keywords that are relevant to your potential customers. 

How does it work? The Google Ads algorithm takes a series of steps that boost the start of advertising campaigns, which means that you can better optimize the economic investment you make on the platform for certain ad campaigns. 

In short, the platform itself makes an analysis of which keywords are the most competitive at the moment and which ones are getting better results based on the ad campaigns that your competitors already have in progress. 

This whole process is called smart bidding. 

And if you want to be able to create successful advertising campaigns, the first thing we recommend is that you do your own analysis of those keywords that are of interest to users. 

We also recommend you to think of each ad as an opportunity to benefit the SEO of your site. 

What is the purpose of the automatic bidding system? 

Like everything perfect and wonderful that Google develops, the automatic bidding system aims to allow you to focus on the personalization of the campaign while the Google Ads algorithm is in charge of evaluating which words are the most competitive and with the best results. 

This way you have a clear idea of what actions you should carry out in order to obtain higher conversion probabilities. 

5 Advantages of smart bidding 

Everything automated is guaranteed to save you a lot of work and effort and the Google Ads auction system is no exception. If you manage to make your ad campaigns a total boom, you will be able to perceive the following advantages:

1. An advanced and accurate algorithm

You may already have done the manual work of evaluating or predicting which keywords perform best in advertising campaigns. 

And although we don't doubt your potential for research, the truth is that the results of your analysis will never be as accurate as those provided by the Google Ads algorithm itself. 

Because there's no one better than the platform itself to know what's performing well and what's not, since your direct competition is inside betting on positioning their ads for the same keyword. 

2. It saves you time

Take care of what really is in your hands!

The smart bid takes care of optimizing your ads on its own, so you can put your time and attention to other tasks that require your full focus such as writing the texts that will appear in the ad bodies, for example. 

3. Gives you the chance to outperform your competition

The platform's algorithm aims to benefit as many advertisers as possible, and in Google Ads you can choose to appear above your competitors. You even have the power to decide how many times you want to be first than your direct competition. 

4. You can see the performance of your campaigns

Through a detailed report with performance analysis, you can see which ads are generating better results, which in most cases the main objective is conversion. 

5. You can merge offline results 

With the Google Ads auction system you can merge the percentage of offline conversions with the percentage of conversions of your digital marketing strategies in order to centralize the performance in one place. 

It applies mostly to cases of online stores that aim to sell a certain amount of specific products such as a skin moisturizer. 

The data you obtain, such as the number of sales of the same cream, can be uploaded to the auction system to evaluate whether the online target for that product will perform as well as you expect. 

This is the only way you can provide additional data that the algorithm uses to know if your campaigns could generate the same amount of sales, identify if that is the product that users are really looking for, if your competition is already generating sales for the same keyword or if you should modify any action of your offline strategy as such. 

What other benefit could the merger of both channels give you? That the auction system filters better the list of keywords that it will show you to compete with other ongoing campaigns. 

It's essential that you can take every economic resource and make the most of it, the more savings you can make in each campaign you launch on the network, the better the distribution of that budget will be. 

It's worthless if you have a star product or service or if your customer service is top notch if you are directing your advertising campaigns to the wrong audience.

Can you think of any other advantages of smart bidding in SEM? Let us know in the comments.