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

Blog Posts

Is customer segmentation dead?

Ginni Rometty, the CEO of IBM, announced the death of customer segmentation five years ago saying, "The shift is to go from the segment to the individual. She might have been a bit premature for most marketers, but if customer segmentation isn't dead yet, it's definitely on life support.

Richard Taylor

Senior digital strategist, Spinach

How people buy brands

Andrew Ehrenberg was a giant in the field of marketing science. He believed scientific methods could reveal law-like patterns of how people buy. In this post, I summarise one of Ehrenberg’s most important discoveries and its implications on how people buy brands.

Kyle Ross

Strategist, TRP

Is artificial intelligence riddled with bias?

The purpose of Artificial Intelligence (AI) has always been to replace the menial and repetitive tasks we do each day in every sector, so that we can concentrate on doing what we do best. Saving time and money has certainly been a decent outcome as AI infiltrates the business landscape, however, now we are starting to see problems that cause major issues in practice.

Katja Forbes

Founder and chief, sfyte

At the deeper levels of artificial intelligence, computing machines make all kinds of correlations among whatever data is available to th...

Fraction Tech

Is artificial intelligence riddled with bias? - Customer Design - CMO Australia

Read more

https://myiplookup.com/ - find your ip address and location information in our main page. Also there are many ip tools you can use : IP L...

savefrom

iSelect outlines new approach to arrest ineffective marketing as its reports full-year results

Read more

https://myiplookup.com/ - this website will allow you to View Alexa Ranking and graph Check http headers of a website, tool to compare te...

savefrom

The Star's first CMO creates all-new marketing team

Read more

Good tips to follow. Thank you!

Anna Travis

5 things every business can do to drive brand loyalty

Read more

Thank you! That was useful to know.

Belia Adam

Why your best social marketing brand tool could be hiding in plain sight

Read more

Latest Podcast

More podcasts

Sign in