Automatic Bidding has its own set of advantages. Smaller marketers may prefer it to manual bidding, especially when you’re pressed for time. The downside to this is that the results you will get are going to be modest. Beginners may prefer automatic bidding, but if you’re looking to maximize your potential beyond the basics, then there are five particular points to consider before picking between Automatic vs. Manual Bidding:
#1: Impression Share
The fact that you’re bidding on a specific keyword doesn’t mean you’re showing up each time it’s searched. There’s a possibility that your advertisements for key phrases could be shown less than 10% of the time. One of the most common reasons for lost Impression Share is low Ad Rank. Quality Score may play a significant function in advertisement ranking, but the quickest way to enhance your rank is usually by boosting your bid.
With automatic bidding, you cannot manually choose certain keywords or phrases to boost your different services or products. Because of this limitation, you can’t increase the Impression Share and you will continue to lose impressions for your advertisements. Also, potential conversions won’t end up finding you.
#2: Page Position
Searches can expand your business faster than many traditional channels, but first, people need to see your advertisement. If it’s in a low position on the SERPs, users may be skipping it in favor of other links on the page. Say the last time you searched for an item. Did you take the time to look beyond the leading 3-4 positions?
You should bid higher on critical keywords in your account to guarantee you are truly getting the right impressions. This will place your advertisement on top results or, at the very least, in 4-5 positions to reach those searchers who may be the most open to converting. With Automatic Bidding, another limitation is that you can’t precisely pick and readjust the individual bids on those vital keywords, which can leave your advertisements at the end of the page.
#3: Tiered / Stacked Bidding
Tiered or Stacked Bidding, an advanced bidding strategy, refers to the specific match types you’re using in PPC. More specific match types can boost Quality Score, drive higher CTR’s, and are less expensive than clicks on more basic match types. Those very same match types and terms can usually drive conversions at a higher rate and lower cost than even more general variations.
Considering that those search phrases are better and a greater priority, they are bid higher than Broad Matched variants. As you go for a more specific Match Type, you should bid 10-15% higher for each: Broad < Modified Broad < Phrase < Exact. Your Exact Match keyword phrase ought to have the highest possible bid considering that it is one of the most specific, while the other match types are tiered less based on their specificity.
An advertiser would undoubtedly prefer to receive all clicks on the most specific match type with the possibility to reap the benefit of higher CTR’s. However, Google tends to be a lot more concerned with your Max Cost-Per-Click on manual bidding. If your Max CPC is higher on a Broad Matched keyword, then it is likely to pull in Exact Matches also, even if you have a specific Exact Match keyword in your account.
To prevent this from taking place, you should utilize a Bid Stacking strategy. Another limitation with automated bidding is that, since you cannot modify your bids, you cannot tier your match types. Google will then decide where to attribute your clicks.
#4: Excessively High Bids
Expensive bids can absolutely be avoided with a sensible maximum CPC setting. One keyword without even one click or impression serves as a great example of why you should avoid giving away control in your bidding process. This situation can be prevented by establishing a lower maximum CPC bid limit, and it will help you avoid the extremes that can occur with Automatic Bidding.
Even in industries such as Insurance or Law, clicks rarely go outrageously high. While the Maximum CPC can be set high to achieve a high Impression Share, most clicks stay around a $10 – $30 Average CPC as anticipated. More control over your individual bids can ensure that an over-the-top expensive bid will not take place. Google lacks the intuition and discretion for spending your own money, so do not depend entirely on its judgment to determine the value of your keywords. Unfortunately, when you use automatic bidding, that’s exactly what you’re doing – depending on Google’s decision.
#5: Manual Management of CPA
If you are reading this article to educate yourself about Pay Per Click, it’s more than likely you want to be in full control of your account. For most searchers, the goal is to decrease your CPA, or the expense incurred to obtain each conversion. Automatic Bidding goes against that objective.
Take into consideration keywords in your account that may convert at a greater rate than others. Ideally, you would hope to get even more impressions and invest much more on the keywords that convert. That “interest” would be mirrored in a higher bid price for converting keywords and a reduced bid for lower converting (but still relevant) search phrases.
With Automatic Bidding, Google decides on how the budget and bids are spent for all keywords. This stops you from making more particular preferences for your converting terms and lackluster keywords that simply may be driving expense as opposed to value.
Is it actually NEVER, OK to use Automatic Bidding?
Sometimes, automatic bidding can also be a good option. However, it holds true that most advertisers prefer to utilize Manual Bidding as their Google Ads bidding strategy. But with changes to the Google AdWords algorithms, automated bidding has been more favorable for several online marketers. To determine what works best for your business– and your account goals– test both bidding strategies to see just how each performs.