On Tuesday Google announced that auctions conducted on search partner sites can utilize Smart Bidding rather than smart pricing once an advertiser has a conversion tracking set up.
Why is it important to you?
Google states that Smart Bidding can provide better performance since it includes contextual signals for optimizing bids for all auctions. Smart pricing, which has been utilized for manual bids for search partners, focuses on signals like keyboard lists or concepts which initiated the ad and the page type on which the ad was displayed.
Google states that with Smart Bidding, bids get optimized automatically on search partner sites by utilizing the same signals like smart pricing in addition to attributes on potential customers. For instance, bids might be reduced in case a potential buyer is in an audience list which so far had a lower conversion rate.
More insights about this new development
- The objective is to boost conversions on search partners at a cost per conversion which is similar to Google Search. For instance, Smart bidding might set lower bids on a search partner site in case you have a low rate of conversion in it.
- On the other hand, Google states that, “Smart Bidding may raise your bid to help you get more traffic and conversions from that site at the $50 cost you receive on Google Search”.
- Advertisers can divide data by network to view the performance of search partners. However, they won’t be able to view their granular performance at the website level.
- This change is effective instantaneously.