Google has introduced a new Smart Bidding strategy that intends to set the right bid for each auction in order to help advertisers get the most possible conversions based on their allotted daily budget.
The new Maximize Conversions strategy leverages Google's machine learning to auto-optimize bids and offers auction-time bidding capabilities to tailor bids for each specific auction. The approach should relieve some of the strain and challenges typically associated with setting the right bid and bid adjustments.
The Maximize Conversions bid strategy uses historical information on an ad campaign and evaluates contextual signals at auction time, finding the optimal CPC bid for each advertisement when it is eligible to appear.
Google did provide some notes for those considering making the switch. First, you'll want to check that campaigns with this bid strategy turned on are not part of a shared budget (and you'll want to make sure there are sufficient funds within it) as Maximize Conversions will try to spend a daily budget in full.
Early reports appear quite positive. One AdWords advertiser, Trex, a composite decking company, used the bidding strategy and reportedly experienced a 73 percent increase in conversion volume, 59 percent increase in CVR (conversion rate), and 42 percent decrease in CPA (cost per acquisition), and with no change in the company's spending.