Google taps AI to help you bid for digital ads

Machine learning powers a new Smart Bidding feature for AdWords and DoubleClick Search

Real-time bidding is an aspect of digital marketing that can seem overly complex for the average bear, so it was only a matter of time before AI entered the picture. This week, Google brought machine learning into the process to help make it easier.

Tapping some of the same artificial-intelligence technologies that have already appeared in Google Photos and AlphaGo, Smart Bidding is a new capability for conversion-based automated bidding across AdWords and DoubleClick Search to help companies determine their optimal bid for any given campaign or portfolio. It can factor in millions of signals, Google says, and continually refines models of users' conversion performance at different bid levels.

"Smart Bidding's learning capabilities quickly maximize the accuracy of your bidding models to improve how you optimize the long-tail," Anthony Chavez, Google's product management director for search ads, wrote in a blog post explaining the new service. "It evaluates patterns in your campaign structure, landing pages, ad text, product information, keyword phrases, and many more [data points] to identify more relevant similarities across bidding items."

Essentially, Smart Bidding tailors bids to each auction across Google's properties and allows buyers to factor in a wide range of contextual signals, including device and location. Focusing on device performance, for instance, advertisers can set separate cost per acquisition (CPA) goals by device. A telecom advertiser whose best leads come in via mobile, for instance, could set a higher target CPA for that platform compared with other devices.

New reporting features, meanwhile, show companies exactly how their bid strategies are performing and flag any issues requiring attention.

Current users of AdWords Smart Bidding include AliExpress, SurveyMonkey, and Capterra, Google says.

"Google is trying to maximize effectiveness of search marketing as well as its own revenue," said Greg Sterling, vice president for strategy and insights with the Local Search Association. "Bringing machine learning to bear on bidding should advance both objectives."

Google is increasingly in competition with Facebook and other channels, Sterling added, so "it needs to continually invest and improve paid search to keep marketers engaged."

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Latest Videos

Launch Marketing Council Episode 3: Launching in the technology sector

Our multi-part video series, Ready to Launch, is focused on unlocking the secrets of launching brands, products and services by exploring real-life examples from Australia’s marketing elite. The series is being produced as part of the Launch Marketing Council initiative by CMO in conjunction with independent agency, Five by Five Global.

More Videos

NetSuite started out as a cloud-based provider of Enterprise Resource Planning software or as NetSuite solution provider, which companies...

talalyousaf

NetSuite to acquire Bronto's digital marketing platform for US$200m

Read more

Thanks for sharing this post, its really good information I get through this blog.CDPO Online Exam Training

Infosectrain01

3 ways Booking.com is improving its B2B marketing game

Read more

Time is of the essence, especially for customer service teams. With chatbots, you can interact and assist customers at a larger scale, al...

Jai

Triple-digit customer database growth, personalised engagement become reality for Stone & Wood

Read more

Hey Emilie - great read, and I particularly liked the section on the pressure of having brand purpose/Gen Z spending habits. It's great t...

Chris Thomas

Have customers really changed? - Marketing edge - CMO Australia

Read more

Extremely informative. One should definitely go through the blog in order to know different aspects of the Retail Business and retail Tec...

Sheetal Kamble

SAP retail chief: Why more retailers need to harness data differently

Read more

Blog Posts

The ultimate battle: brand vs retailer

At the beginning every brand is pure. Every founder with a dream cherishes the brand like a newborn. But very soon that newborn goes out into the big wide world.

Simon Porter

Managing director, Havas Commerce

How the CMO can get the board on the customer’s side

For some CMOs, it’s easy to feel alone in the undying quest to better serve the customer. At times, it feels like the marketing department and the boards are speaking a different language, with one side trying to serve the customer, and the other side more focused on the shareholders and financials.

Jeff Cooper

CMO and board, Business Excellence Australia

The Secret Ingredients of a CX-Led Company Culture

When I talk to organisations around the world about their customer experience strategy, it is often the CMOs and their marketing teams who take the lead. They’re keen to improve the ways they attract and engage customers, and they want to understand the technologies that can help them make their customer experience truly outstanding.

Steven van Belleghem

Author, CX expert

Sign in