Why does automating your bid versus using manual bidding contribute to a successful Google Ads campaign?

The appropriate bid can often be a static target that is challenging to reach.

The customer journey has become more complex and therefore bids should be based on general user behavior.

If you do not bid efficiently, you could miss valuable conversions.

User intent and likelihood to complete valuable actions for your business do not vary based on location, time, or device.

Explanation

Analysis of Correct Answer(s)

  • If you do not bid efficiently, you could miss valuable conversions. This is the correct answer because the primary advantage of automated bidding is its ability to optimize for performance in real-time. The Google Ads auction is highly dynamic. Automated strategies use machine learning to analyze a vast range of signals (like device, location, time of day, and user behavior) for each individual auction. This allows the system to set a more precise and efficient bid for users who are most likely to convert. In contrast, manual bidding can't adapt as quickly, which can lead to bidding too low in valuable auctions and therefore missing potential conversions.

Analysis of Incorrect Options

  • The appropriate bid can often be a static target that is challenging to reach. This is incorrect. An appropriate bid is never static; it's dynamic and changes based on competition and user signals in each auction. Automated bidding excels because it adapts to this constantly changing environment.

  • User intent and likelihood to complete valuable actions...do not vary based on location, time, or device. This statement is false. User intent varies significantly based on these factors. This variability is the key reason why automated bidding, which can process these signals, is more effective than manual bidding.

  • The customer journey has become more complex and therefore bids should be based on general user behavior. While the customer journey is indeed more complex, bidding should be based on specific, real-time signals for each user, not on general behavior. Automated bidding's strength is its ability to set a unique bid for each auction's specific context.