Every advertisement’s end objective is a sale. Because of this, many organizations in today’s world are moving towards paid search bidding via Google Ads. Instead of focusing on clicks, they pay attention to conversions.
In the following paragraphs, we will take a more in-depth look at the Maximize Conversions bidding strategy, how it performs, and when you need to apply it to your Google Ads campaigns.
What is Maximize Conversions Bidding?
Using Google Ads, there is an automatic bidding method known as “Maximize Conversions,” which offers the promise to produce the most number of sales possible for your daily budget.
An illustration is the most effective approach to describe bid strategies that maximize conversions.
Consider that your campaign has a daily budget of $100. Google will utilize the $100 you spend on Boost Sales to make every effort to get you the greatest number of conversions possible.
The exact number of conversions you achieve heavily depends on the type of company you manage. For some marketers, spending this $100 may result in 10 sales, but for others, the same amount of money would only result in 2 sales.
How Maximize are Conversions Bidding Works in Google Ads?
Using the Maximize Conversions bidding strategy, Google automatically evaluates many contextual signals, including the device, geography, search engine, remarketing lists, and operating system.
After considering these indicators and the previous activity associated with your campaign, Google will try to identify the clicks that are most likely to result in a conversion.
They can’t afford to be too competitive in terms of cost per click (CPC) since there’s no predicting whether or not a given click will result in a sale.
When to use Max Conversions?
As I mentioned, Google considers many factors when determining the best offers in every ad auction.
Therefore, the company needs more information to feed the machine for Google to improve.
Because of this, selecting Maximize Conversions as your bidding strategy while just getting started is not the best choice.
Before transitioning to this bidding technique, you should try to have at least 15–30 sales in the preceding 30 days. That way, the algorithm will have enough information to learn from.
What you should know about Target Cost-Per-Acquisition (CPA)
Target CPA, previously its independent bid approach, is now included as a parameter in the Maximum Sales conversion bid approach. When you choose it and input a target cost per acquisition (CPA), the smart bidding algorithm automatically adjusts its bids to help you reach your CPA objective.
You can use this feature to stop a Max Conversions campaign from spending or overbidding on ad space. You will have a greater influence on the final cost-per-lead due to this. But, it is essential to ensure that this objective is always achievable. A Target CPA set too low might cause campaigns to be slowed, which may result in advertisements not being shown. If you are wondering which campaign you should use read about: Target CPA vs Max Conversions Test And Q&A.
4 Best Practices For Maximize Google Ads Conversions Bidding
Max Conversions has a lot of potential in the concept, just as every other automated bidding strategy does. Google works to maximize the number of conversions you experience.
However, the truth may sometimes be far more dismal than expected. Sometimes, the algorithm fails to perform properly, and Google cannot produce results at an acceptable price.
The following are four recommended practices that, if followed, will increase your chances of success and avoid this from happening:
1) Start with enough data
As was discussed before, the performance of a campaign will be improved the more conversion data it has before you move over to it.
2) Let Google Ads learn
Because the Maximize Conversions bidding strategy in Google Ads is powered by machine learning, as was previously discussed, you need to ensure that you allow the algorithm enough time to learn it.
In most cases, Google will understand your advertising and determine the ideal bid for them over roughly two weeks. During this learning time, you should avoid making major ad adjustments since doing so might force Google to start the learning experience over again.
3) Double check conversion tracking
Since we want to maximize the number of conversions we get. You want precise conversion monitoring to function correctly.
In addition, you need to check to see that your ad is optimizing for the appropriate sales and that you are not counting the same thing twice.
4) Mind the budget
Each campaign under your Google Ads account should have its own unique objectives, provided that the account has been set up perfectly.
When employing the Maximize Conversions bidding strategy, it is necessary to either have its own cost or be on a spending plan that is shared with other campaigns with comparable objectives.