AI and Machine Language in PPC
- 1. Artificial Intelligence and Machine Learning in PPC Presented by: David Szetela Owner and CEO, FMB Media
- 3. Definitions • Artificial Intelligence = software that performs tasks that normally require human intelligence, e.g. speech recognition • Machine Learning = software that automatically modifies itself over time, based on “experience.”
- 4. AI & Machine Learning Examples in PPC • Automated Bid Management • Attribution Models • Ad Rotation Settings • Opportunities (especially in the new AdWords “Experience”)
- 5. Future AI & Machine Learning • Google Optimize • Google Attribution
- 6. AdWords Automated Bidding Options • Maximize Clicks – can specify maximum CPC (do it) • Target Search Page Location – top or anywhere on search page; specify max CPC • Target Outranking Share
- 7. Target Outranking Share • Automatically bids to keep your ads above a competitor • You enter the domain name of the competitor’s site • Specify the percentage of auctions you want modified this way. Higher percentages = more budget • If you and competitor both use this strategy, rank is determined by bid price and quality score
- 8. AdWords Smart Bidding Options • Target CPA • Target ROAS • Enhanced CPC (eCPC) • Target Maximum Conversions
- 9. Smart Bidding Contextual Signals • Machine learning based on device, location, next location, weekday, time of day, remarketing list, ad characteristics, interface language, browser, operating system, demographics, search query, search network partner, web placement (Display), site behavior (Display), product attributes (Shopping), price competitiveness (shopping), Seasonality (Shopping), etc.
- 10. Target Cost per Action • Real-time bid adjustment – optimal bid for each auction • Optimal CPA: at first, AdWords will suggest; OK to set target to 10-15% of current average CPA • Requires a minimum of 15 conversions over the past 30 days – more is much better; consider micro-conversions • Needs time to learn – be patient! Can take 2-3 weeks
- 11. Target CPA (continued) • Works best for lead generation, but also try it for eCommerce where products price range is wide • If you want to decrease CPA more than 10-15%, do it in increments of 15% and wait at least a week between adjustments
- 12. Target Return on Ad Spend • ROAS = sales / ad spend x 100% • Real-time calculation of bid price, just like Target CPA • AdWords will suggest an appropriate ROAS based on past performance • If you want to increase ROAS more than the suggested target, do so in 10-15% increments, waiting at least a week between adjustments
- 13. Enhanced CPC (eCPC) • Adjust bids in real time, based on the manual bids you set • Continually self-adjusting by double-checking its “success rate” against manual bids • Caveat 1: no cap on bid increases • Caveat 2: doesn’t take device into consideration • Caveat 3: Don’t use on new campaigns – even though it’s turned on by default – because there’s no conversion history
- 14. Target Maximum Conversions • Spends your entire budget to obtain the maximum number of conversions • Check your daily campaign budgets – this automated bidding will eat it all up • Decide whether target CPA or ROAS might be more appropriate
- 15. Bonus (?!) Automatic Display Targeting • Automatically turned on when you create a new Display campaign • Two flavors: Conservative and Aggressive • Conservative: shows ads on more sites that are related to target context or audience • Aggressive: shows ads to more people based on likelihood of converting. Requires a minimum of 15 conversions per month.
- 16. Coming Soon to BingAds
- 17. Attribution AI is Now Available • Attribution acknowledges that more than one paid action might occur in conversion chain of events • In AdWords now: Allows automated bidding using attribution models based on a number of “touch points” • Tools -> Attribution -> Attribution Modeling
- 25. Thanks! • Free Book – Give me your business card, or – Send me an email: david@fmbmedia.com