Automated Cost per Action Bidding (Autobidder) can be enabled for your Ad Groups at Ad Group level. Before enabling it, please read this article to understand whether it makes sense to enable it in your case or it is best to use Automation rules instead.
What is Autobidder?
Autobidder is a smart algorithm in SearchAdsHQ that adjusts the bids in your campaigns to get more actions at a lower cost. Actions are the events that you have included into Goal in SearchAdsHQ.
If it's enabled, the system sets or adjusts the bids automatically to fit within the limits of the target cost you set.
How to enable Autobidder in SearchAdsHQ?
In order to use CPA Autobidder define the actions you will count as target custom conversions - Goals in SearchAdsHQ.
Then you can navigate to respective Ad Group, click Edit Ad Group to see its settings.
Scroll down and enable Autobidder by toggling “Set optimal keyword bids automatically” on for this particular Ad Group. Please note this will be applied to the keywords in this Ad Group.
You will see additional fields here -
- Target Cost Per Goal (what’s the target / desired cost per goal that you would like to achieve)
- Lower CPT bid limit (so that it is not lower than needed for your industry and you get into the auction)
- Upper CPT bid limit (so that you do not overspend)
Click Save Changes.
Please notice that Autobidder starts working with time as it collects more and more data and read below how it works:
How does Autobidder work?
Autobidder works individually with every keyword in the Ad Group. Bidder runs every 3 hours. Every time it does, it goes through two stages:
- Data collection stage.
Autobidder analyzes the number of Taps and Goals for this particular keyword in the past 30 days. It checks whether there’s enough data to set or adjust the bid.
- Bid calculation stage.
As soon as the autobidder determines that there’s enough data in the account, it calculates and adjusts the CPT Bid for this keyword. With that, it validates the calculated bid according to the target CPA / CPG and the CPT bids limits the user has specified.
In order to calculate the bid, SearchAdsHQ will use the following data:
- CPT during the last 30 days (including today);
- CPG during the last 30 days (including today);
- Target CPG (same as Target CPAction) — maximum price you are willing to pay for 1 goal. You set this parameter when you turn the autobidder on (one value for all keywords in Ad Group);
- Upper and Lower Bid Limit — the limits of the bid that can’t be exceeded. You set this parameter when you turn the autobidder on (one value for all keywords in Ad Group);
If your actual CPG is higher than the target CPG you’ve specified, obviously you would like to decrease the CPG. In this case the bidder will adjust the bids so that eventually the Cost per Goal will decrease. The bigger is the difference between the actual CPG and the target CPG, the more optimization possibilities you have.
If your actual CPG is lower than the target CPG you’ve specified, obviously you would like to make the most of it and get more traffic. In this case the bidder will adjust the bids to allow you to receive more traffic to win in the auction over your competitors using the CPT bids according to the Target CPG and within the CPT bid limits you have specified.
What formula does the bidder use?
In very simple form the formula is as follows:
However, note, that the actual formula takes into account more metrics, confidence ranges and statistical uncertainty as this is crucial when you operate small amounts.