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Automated Bidding

February 11, 2023

Automated bidding is a feature in pay-per-click (PPC) advertising platforms, such as Google Ads and Facebook Ads, that allows advertisers to automate the process of setting bids for their ads. This means that the platform will use algorithms and machine learning models to determine the optimal bid for an ad based on a set of predetermined goals and constraints.

With automated bidding, advertisers no longer need to manually adjust bids based on factors such as target audience behavior, competition, and budget. Instead, the platform will make real-time bid adjustments based on various factors, including the cost-per-click (CPC) of an ad, the likelihood of an ad being shown, and the campaign’s expected return on investment (ROI).

There are several types of automated bidding strategies that advertisers can choose from, including cost-per-click (CPC) bidding, cost-per-impression (CPM) bidding, and cost-per-action (CPA) bidding. Advertisers can also use custom bid strategies, which allow them to set rules and conditions for how bids should be adjusted.

Automated bidding has several advantages, including improved efficiency, increased accuracy, and reduced time and effort required to manage a PPC campaign. With automated bidding, advertisers can focus on creating high-quality ads and landing pages while the platform takes care of the bidding and optimization process.

However, it’s important to note that while automated bidding can be a useful tool for PPC advertising, it’s not a set-and-forget solution. Advertisers should regularly review and monitor their campaigns to ensure that they meet their goals and objectives and make any necessary adjustments to their bid strategies.

Also, See: PPC A/B Testing

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