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Google AdWords Update Produces More Relevant Bids

by Brian Colling - June 28, 2016

New Google AdWords Strategy Allows Businesses to “Set More Relevant Bids”

The business world was thrown a potential curveball recently when Google recently revamped its AdWords bid system for DSA (dynamic search ad) categories.

While the new strategy may take some getting used to, the Adwords announcement noted that it was created to meet a demand for a system that cuts down on the time and research businesses spend in creating bids for individual ads.

AdWords is Google’s advertising arm for businesses seeking to place display ads on the Google search page, as well as some of Google’s network partners. The ads are displayed when potential customers enter relevant keywords into Google’s search bar, and businesses pay based on how often their ads are clicked on.

In order to enable businesses to place a large number of ads at the same time, and avoid needless research for pricing each individual category, the new DSA system automatically puts recommended bids in place for each of the individual categories.

Under the new system, the categories will receive automatic recommended bids, depending on the category your ad is sorted under. Like other Google systems, the bids are based on existing algorithms.

The AdWords announcement noted that it only works for accounts that have “sufficient data” to make the automatic bidding system possible. The bids are set based on past performances of the keywords used by people undertaking comparable searches.

Google’s announcement used the example of a retailer with a large number of items to advertise, such as different classes of shoes. Under this example, AdWords would recommend bids for such categories as “loafers” and “sandals.”

Businesses can be assured, however, that the bids aren’t mandatory. If you don’t agree with one or more of the bids that are automatically assigned to the categories you enter, you can manually enter a new bid.

AdWords’ DSA process works on the now well-known per-click method (although even that system has been refined). Businesses sign up for a Google AdWords account and choose “Dynamic Search Ads” under the “Campaign” tab.

After you’ve filled in your domain name, you’ll be guided to fill out other settings, such as location and budget, as well as the preferred language for the campaign. AdWords recommends that if your website has a “choose your language” option, you create a separate campaign for each language you’ll be targeting in your ads.

Once that process is completed, don’t forget to explore “Advanced Options.” Under “Advanced Options,” you’ll find the new automated bidding strategy.

You’ll also have the chance to choose between the automatic “Maximum Clicks” option over “Cost Per Click.” Google recommends “Maximum Clicks” as the most budget-friendly and efficient when you are working with the DSA system.

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