What is Maximize Conversions?
Your keywords make or break an efficient Google Ads’ Search campaign, so it’s imperative that your keyword bid optimization is on-point. This can get tricky while monitoring all of the variables that generate a successful campaign; including, but certainly not limited to: bid price, ad scheduling, demographic, and location. A smart fix may be Maximize Conversions. Maximize Conversions is an automated auction-time bidding strategy available through Google Ads, focusing on getting the most conversions possible within your budget.
How it works: Using machine-learned information and auction-time bidding, Maximize Conversions will get you the very best bid possible each time a query triggers one of your keywords. It takes into account a slew of other signals, some that aren’t available to you within the AdWords interface. With all of this information, the strategy is capable of accurately predicting whether a potential customer will convert, and bid accordingly.
Here at The Great Online we did our own performance-testing of Maximize Conversions. Below is an example of an account that we switched from Enhanced CPC to Maximize Conversions in June 2018. You will see that in this instance, machine-learning and Google algorithms performed better than active management.
- At the end of the month we found a 60% increase in conversion volume, a 37% decrease in cost per conversion, and a 21% increase in CTR month over month with the same budget.
- In finding out whether this was a seasonal change we looked year over year to June 2017 and found a 23% increase in conversion volume, a 10% decrease in cost per conversion, and a 31% increase in CTR.
Is it for you?
While we know that Maximize Conversions will enhance performance in many cases, you may have significantly different marketing goals or limitations that make this option unviable. Here is a list of necessary requirements, as well as the downside of Maximize Conversions:
- Track Your Conversions – You (and Google Ads) want to learn from your leads, so it’s important to track all of your conversions.
- Budget – Make sure you’re not sharing your budget and be aware that this bidding strategy will try to spend your full daily budget every day – this will most likely be a drastic change from your manual bidding routine.
- Historical Data – It would help greatly if you have historical data, inclusive of conversions, prior to making the move to Maximize Conversions. The data will be used to help avoid a prolonged learning period in which the bidding strategy becomes optimized.
- CPA Goals – This strategy’s goal is strictly to obtain as many conversions as it can within your budget, so if you’re hoping to reach CPA target or have other ROI interests, this may not be the strategy for you.
- Budget & Industry – Your industry is a relevant matter when deciding to switch to Maximize Conversion and your budget may be eaten up quicker than you’d like. If in a competitive industry, clicks are usually more costly. If the algorithm thinks you should be in a higher position to get a conversion, you could end up spending more than necessary.
There have been substantial bidding strategies introduced through the years and automated bidding strategies are an impressive tool that can effectively provide you with the support you need to manage your AdWords account. It’s important to have an understanding of any automated bidding strategy you’re interested in pursuing and to test it often and take into consideration its learning curve when you begin. These strategies cannot take the place of your attention to your AdWords account, they are simply a support. Please contact us if you’d like to learn more about PPC management. And you can find out the answers to many questions at Denver PPC blog.