Google Ads recently switched smart pricing to smart bidding for search partners as long as they have a conversion tracking system implemented.
This means that any search sites that partners with Google to show ads will be affected.
Google’s main purpose for doing this, is to improve the performance by using more signals to optimize bids. Essentially, it will be more effective in making sure that advertisers are paying similar to the search network.
What are search partner sites?
They are sites that partner with Google and show their ads on search result pages, and even local directories. Search partners are able to reach of Google search ads even to people who aren’t searching on Google.
What is Smart pricing?
It is adjusting your cost-per-click (CPC) bids on the Google Display Network and Google Search partner sites. With smart pricing, Google ads relies on its own data to see what sites are more likely to get an actionable business result, and which ones are less likely to. The less likely the lower Google Ads may reduce the bid for that web page.
Smart Bidding:
However, if you are tracking your data, and specifically tracking your conversions while bidding manually, you may be able to use Smart Bidding instead of Smart Pricing on Google Search partner sites. With a wider range of contextual signals, you can optimize bids for each and every auction.
“Smart Bidding will aim to maximize conversions on search partners at a similar cost per conversion as Google Search. For example, if you have a $50 cost per conversion on Google Search but lower conversion rates on partner sites, then Smart Bidding may set lower bids to help achieve a $50 cost per conversion. Alternatively, if you get better conversion rate from a search partner site, Smart Bidding may raise your bid to help you get more traffic and conversions from that site at the $50 cost per conversion you receive on Google Search. “
– Posted by Josh Moser, Product Manager, Google Ads
If this isn’t reason enough to make sure that you have a properly installed conversion tracking system then I don’t know what is!
Make sure your website is tracking your conversions!
Google is focused on collecting data to improve the accuracy of your ads. One of the main aspects of digital marketing is the ability to collect insights from your audience and see what works for them and what does not work. Without being able to see where your results are coming from, you cannot know how to improve for better conversion rates and cost-per-conversion.
Do you have any questions about this change, or would like to know more about a conversion tracking system, don’t hesitate to book your free 1-hour consultation.
