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What is an Automated Bidding Algorithm? – Outorigin

Automated bidding is one of the prevalent implementations of artificial intelligence in the digital advertising industry. If you don’t have any previous understanding of this concept, you may find the process to be very complicated. However, this technology can operate the strategies  and you can reap the benefits of this technique. For example, PPC (pay-per-click) advertising service is one of the most beneficial applications of automated bid algorithms. Here is an overall view on this topic so that you can understand it better and implement it in your business more effectively.


What is an Automated Bidding Algorithm?

Automated bidding is a strategy designed for the advertisers to enable them to set bids with more practical goals eliminating the chances of any guesswork. Google ads service offers several bidding strategies that automatically sets bid amounts based on the probability of clicks on your ads or even conversions. Google scrutinizes the user’s data like the device they are using, their operating system, what time of the day they are more likely to search things, their location, demographic, etc.

The following are some of the most potent elements commonly used by the PPC management services that are sure to give a clear concept of how these algorithms actually work in your campaigns.


Target Strategies

  • Target Search Page Location: This strategy helps in increasing the visibility of your ads. It sets bids automatically to increase the chances of your ad campaigns appearing on the first page or among the top positions of the Google search result.

  • Target Outranking Share: In this strategy, you will be able to choose the domains of your competitors whom you want to outrank in the advertising position. Then Google will set your search bids automatically and aid in acquiring your objective.

  • Target Cost-Per-Acquisition: This method gives you more control over the automatic bidding system. In this strategy, you will have to set a target cost-per-acquisition, and google will automatically set Display or Search bids so that you can get the maximum possible conversion.

  • Target Return on Ad Spend (ROAS): Target return on ads spend automatically regulates the bids to help you achieve the conversion value as high as possible while staying within your set ROAS. ROAS is basically the standard value you get in return in exchange for every dollar you expend on your ads. 


Maximize Strategies

  • Maximize clicks: The aim of this strategy is to increase the amount of traffic to your website. It automatically sets bids within your budget to maximize the clicks.

  • Enhance Cost-Per-Click (ECPC): ECPC simply helps increase your conversions within the control of the keyword bids. With his strategy, Google Ads Service adjusts your manual bids automatically to generate more conversions while achieving the equal cost-per-conversion.

  • Maximize conversions: This strategy ensures more conversions on spending your entire budget for ad campaigns. It automatically sets target bids to achieve the objective. When you have a large amount dedicated to your ad campaigns and want to drive more conversions automatically through your ads, this strategy is best to use.  


Wrapping Up

Thus, artificial intelligence-powered algorithms are precious tools to improve budget spend and make targeted campaign decisions in order to reach your business goals. While Google Ads offer various automated bidding features, there are also many third party PPC Service Providers or Digital Marketing Company like Out Origin, who enable the advertisers to maximize the benefits of machine learning and AI bidding. After developing a clear understanding of the subject, you need to figure out which platforms and features will help you meet the advertising goals you aim for.

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