There are many signals that Google’s automated smart bidding algorithms that can be taken into account at the time of each auction, such as device information, search query and location. Soon, more signals will be added to that list for App and Shopping campaigns, according to a help page.
One factor will be mobile app ratings, with bids adjusted automatically based on “the strength and quantities of an app’s reviews.” If an app has a high number of positive reviews, the ad for that app might be deemed likely to result in an install.
Price competitiveness and seasonality will each soon be factors for Shopping campaigns.
Price is also an important role in Google Shopping success, and is included among the product attributes signal Google uses. Other attributes includes
condition, brand and product category. Price competitiveness has not been explicitly listed. When this update rolls out, Google might optimize bids based on a product’s price compared to its auction competitors. Things that will influence automated bids will include low prices, deals and discounts.
Seasonal performance trends will soon be taken into account by Google with smart bidding in Shopping campaigns.
As an example, Google says, an electronics retailer’s bids on ads for television sets may be adjusted during the holiday season “which typically sees a higher conversion likelihood.”
As more signals get incorporated into smart bidding, it should theoretically make the bids “smarter,” although the issue of transparency becomes more muddled as it becomes harder for advertisers to parse which factors are having the greatest influence on their ultimate bids and results.
Google says they will be “coming soon.” They’ve been posted as such for at least a month, so that could mean in the coming months.