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3 main reasons for the failure of smart bidding campaigns

Smart bidding on english

Google’s algorithm is getting smarter and more powerful every day in managing the Google Ads campaign.  

By collecting data through a variety of channels, Google’s algorithm delivers consistent campaign results if managed wisely throughout the campaign.

In the numerous tests we have conducted so far in Smart Bidding Campaigns, most of our clients perform significantly better in Smart Bidding campaigns than they did two years ago. 

Improvements are definitely visible, all thanks to Google’s smarter algorithm, its better and more advanced learning, and mastery of what is set for it within the campaign.

However, during the period we noticed that some Smart Bidding campaigns still do not bring results, that something is still wrong.

We want to point out that you have two main things in mind when launching a Smart Bidding campaign, however before that a brief introduction about the Smart Bidding campaign itself.

Google Ads within its settings allows us to choose what type of bid or strategy we want to use in the campaign to achieve the maximum number of clicks or conversions. 

Here we can single out the following bidding strategies:

Manual CPC

Maximize Clicks

Enhanced CPC

Maximize Conversions

Target CPA

Target ROAS

The last four strategies are Smart Bidding Strategies. Google's algorithm collects data from a variety of sources to deliver the best results for a particular type of bidding strategy.

Manual CPC i Maximize Clicks are very limited and superficial in this context. However, this does not mean that this type of bidding strategy will not bring you results. 

What we always suggest is testing.Test everything you can, and you will see best which strategy brings you the best results.

Now let’s move on to the 3 main reasons for the failure of the Smart Bidding campaign. 

 

Reason # 1: You don't have a clearly defined goal within the campaign

Without a clear goal, you do not have a clearly defined path which your campaign should go. That’s why we set KPIs. 

Without one or more KPIs set, your campaign will behave like a ship without a captain. She will be lost.

Most companies, including our clients, will say in that case that their goal is "I want more sales". But why don’t we all want to make more sales? 

What if you start a new sales line? Do you expect a sale the same day you launch your campaign? 

What if you run a Display Ads campaign aimed at an audience that has never heard of your brand? Do you expect them to click right away and buy your product? 

We are not saying that it is not possible. But in reality such cases are rare. 

Therefore, before you run a campaign, clearly identify who your target audience is, who your customers are. Clearly define what you promote in your campaigns and how you will measure the success of your campaign. 

Conversions which you define, i.e. the goals you want to achieve in your campaigns do not always have to be sales. There may also be steps that led to an individual purchase.

Make sure they are yours ads tailored to each phase within the funnel, e.g., are your ads tailored to your potential customers who are at the top of the funnel (so-called Cold audience)?  

In that case, the first interaction (so-called engagement event) would be when someone clicks on the product after having previously visited your landing page. 

Are your ads tailored to the bottom of the funnel (so-called Hot audience) In this case, adding to the cart is a very relevant goal of your campaign, which you should set.

A smart bidding campaign brings the best results when conversions take place within 5 days from clicking on the ad.

Take care that you can import the goals you set within Google Analytics in Google Ads after you have successfully defined your campaign goals.

Make sure you enter your Google Analytics goals correctly into Google Ads, otherwise your Smart Bidding campaign will not take your goals into account.

 

Reason # 2 You don't have enough conversions collected

The most common reason for the failure of Smart Bidding campaigns are unrealized conversions i.e. an insufficient number of achievable conversions based on which Google’s algorithm learns and delivers the required results in a Smart Bidding campaign. 

Google's algorithm in this case has a number of assumptions as to what goals you want to achieve, but it's not sure and has a little bit of accurate data within the Smart Bidding campaign to be able to deliver the best campaign results.  

In that case, the best practice is to accomplish in the beginning minimum 30 conversions before you change your campaign to target CPA or get minimum 50 conversions before switching the campaign to Target ROAS (within an eCommerce campaign).

Our recommendation is as follows:

Get started to start with Manual CPC strategy till you reach +/- 15 conversions within 14 days.

Then change the bidding strategy to Enhanced CPC till you reach 30 conversions within 14 days.

Before that you choose Target CPA or ROAS

 

REASON # 3: You can't leave the campaign alone 

Once you've set up your campaign according to the instructions, let it do its thing. 

Don’t work all the time changes within the campaign, because Google's algorithm takes time to do its thing. 

The consistency of the campaign comes after the seventh day since launching the campaign, so be patient with Google.

Of course, if you made multiple conversions before running the Smart bidding campaign, your results will be more consistent, and you should have no oscillations within the campaign. 

 

Every change you make within a Smart Bidding campaign needs to be done carefully. The changes you should definitely not make within 2 weeks are: 

Delete or add keywords or ad text

Changes to the bidding method within the campaign

Ad group pauses or launches

 

Try the first 2 weeks of launching the campaign do not change the above variables if you want to achieve consistent results of the Smart bidding campaign. 

After that, you can start with by optimizing your Smart bidding campaign, and be sure not to make too many variable changes at once when optimizing your campaign.

Therefore, be careful and take care when launching a Smart Bidding campaign about the reasons given, which may result in the failure of your Smart Bidding campaign. 

Also make sure that your campaign is well prepared, which we wrote about recently in our blog which you can read here.

 

If you have additional questions feel free to contact us at [email protected] 

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Proelium Media je specijalizirana agencija za digitalni marketing koja posluje pet godina na tržištu.

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