Google’s rolled out a new bidding strategy which allows advertisers to tailor their bids based on the value of potential conversions.

What conversion-focused bidding strategies did we have previously?

Previously, to optimise for conversions, there were the following options: 

The maximise conversions bidding strategy, which leveraged machine learning to analyze factors like remarketing lists, time of day and the users’ browser and operating system, adjusts bids and maximises the amount of conversions earned. 

The Target CPA bidding strategy, which optimises keyword bids in order to return a desired cost per acquisition / conversion based on your goals, has also been around for some time.

What’s available in the new strategy?

The new Maximise Conversion Value strategy uses similar methods to bid on clicks that are likely to result in the most valuable conversions, and also takes into account the historical data of the campaign to determine the “optimal CPC bid” when entering an ad auction. 

What’s still to come?

At the Google Marketing Live event back in May, Google teased further functionality which we may yet see, allowing advertisers further flexibility in assigning values to conversion actions. It will feature rules based on users’ audience, location and device.

Below is an image of the new bidding strategy options, courtesy of Search Engine Land.

Why you should care

As has been the trend for some time, Google is making it more and more clear for advertisers that Smart Bidding Strategies are the way to go over manual bid management. 

Keeping up with the amount of Smart Bidding Strategies options available, and what their distinct goals are, has become the key. So, take note of the new features, and which features are still to come, to ensure a well-oiled PPC machine!