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 5: Retailer and supplier

In our fifth and final episode, we delve into the relationship between retailer and supplier and how it drives and influences launch marketing strategies and success. To do that, we’re joined by Campbell Davies, group general manager of Associated Retailers Limited, and Kristin Viccars, marketing director A/NZ, Apex Tool Group. Also featured are Five by Five Global managing director, Matt Lawton, and CMO’s Nadia Cameron.

More Videos

Great read. I agree that it should be a perfect balance between interacting with your customers and knowing your brand. As a business, yo...

Caroline Scott

7 ways CMOs can improve their customer engagement game

Read more

Very true. Team development helps improve collaboration among the team members. I was able to improve my team's collaboration skills by t...

Quent Sinder

Why empowering others can help make you a great leader

Read more

CRM is a very good software that can help you succeed in your business. In my company, this system has allowed me to improve customer rel...

Anna Janicka

Sensis rebrands to Thryv and brings business software to Australian SMBs

Read more

AI Leasing Assistants have finally arrived for the multifamily industry. With so many to choose from it can be hard to figure out which i...

Alice Labs Pte. Ltd.

CMO's top 8 martech stories for the week - 6 May 2021

Read more

Nowadays, when everything is being done online, it is good to know that someone is trying to make an improvement. As a company, you are o...

Marcus

10 lessons Telstra has learnt through its T22 transformation

Read more

Blog Posts

Why if marketing is all you do, you’ll never be very good at it

OK, so you’re probably thinking: “Here comes another article to badger me about living in my bubble.” And also, “I bet this bubble-bashing piece will go on to explain how I can achieve better results through some heady dose of new life experiences, new routines and annoyingly different opinions on social media.”

Dane Smith and Toby Harrison

Ogilvy Australia

A leader’s role in rebuilding a culture of confidence

Every day, there are new predictions and studies on the future of work, the state of the economy and the unfolding global pandemic. All of which creates uncertainty and heightens the imperative of effective leadership.

Michelle Gibbings

Workplace expert, author

Confused About Your Customers?​

​I've worked in brand and marketing for more than 20 years. But there’s one area where I’ve found myself going around in circles and I must admit I'm becoming increasingly confused.

Rich Curtis

CEO, FutureBrand A/NZ

Sign in