Pay-per-conversion advertising, Smart Bidding of Google Ads

There's a new kind of advertising that's slowly becoming available to projects with thorough analytics. New ad campaigns where advertisers can pay not for clicks, but for actual effective results. It's like Google is guessing exactly what businesses need, turning it into the next big trend. So, let's get started!

By now, everyone knows that Google isn't the only big player in the online sales market anymore. In the U.S., Amazon has stepped up as a serious competitor. Amazon's company philosophy is pretty straightforward:

PAY ONLY WHEN YOU SELL

This approach is exactly what made Amazon a leader in many financial aspects in the States. Naturally, after that, Google rolled out machine learning for all sales triggers, which include:

👉 Complete financial sales data from Google Analytics;

👉 Ad placements;

👉 Products being sold;

👉 Users' search history;

👉 User behavior across different websites;

👉 And so on.

Another key factor in the rise of pay-per-conversion campaigns was the low profitability of advertising in the Display Network.

Businesses, by nature, want to profit from everything. Of course, advertising in the Display Network is inherently aimed not at conversions but at branding and impressions. So, businesses immediately think—is it worth paying for? Only a savvy client knows that it is.

So, here's what we've got:

👉 Google wants to make it easy for people to pay for advertising;

👉 Google wants website owners to keep advertising in the Display Network;

👉 Google launches a new product for many companies — Smart Bidding, smart campaigns.

Campaigns that automate targets focused on financial results!

Smart Bidding is now available in shopping campaigns and the Display Network. Many people still confuse smart bidding with automatic strategies, but it's not quite the same thing.

The main requirements for Smart Bidding campaigns:

👉 Having e-commerce set up in Google Analytics;

👉 Configured goals in Google Ads with financial metrics;

👉 At least 50 (previously the threshold was 100) conversions in the last 30 days.

When launching a smart campaign in bid settings, the system will default to “Maximize Conversion Value.” You can also set “Return on Ad Spend,” but here you'll need to work with your business's financial metrics.

We could show you a bunch of screenshots, but campaigns of this type are better set up and monitored with a manager or agency, simply because it's easy to lose track and end up paying for clicks instead of conversions, and not get the results you're after.

Order a service