In AdWords, Smart Bidding strategies use machine learning to adjust bids tailored for every auction. There are several factors that these algorithms take into account, such as the type of bid strategy. The newest addition to AdWords Smart Bidding strategies is called Maximize Conversions.
From this week’s announcement:
Maximize Conversions will help you get you the most number of sales from your existing budget by factoring signals like remarketing lists, time of day, browser and operating system into bids.
For Maximize Conversions, historical performance is taken into account. Rather than ROI goals, Maximize Conversions is concerned with conversion volume. As the name implies, Maximize Conversions will end up spending the daily budget with the focus in mind of getting more conversions.
According to Google, decking company Trex noticed a 73 percent increase in conversions, a 59 percent increase in conversion rate and a 42 percent lower CPA in its first test using Maximize Conversions.
A few things to note for Maximize Conversions:
- AdWords conversion tracking needs to be set up.
- The campaign must have its own budget, not share a budget with any other campaigns.
- Maximize Conversions will stay within the set budget but will aim to meet that daily budget. If a campaign is currently under-spending, expect to see spend increase when switching to Maximize Conversions.
To find Maximize Conversions, you can find it listed as a Bid strategy option under campaign settings in Search campaigns.