What are two benefits of automated bidding? (Choose two.)

Analysis of Correct Answer(s)

Automated bidding, particularly Google's Smart Bidding, leverages machine learning to optimize for conversions or conversion value in every auction. Its main benefits include:

• Time saving: By automating the complex task of setting bids for each individual auction, this feature saves advertisers significant time and effort. Instead of manually adjusting bids based on performance data, advertisers can focus on higher-level strategy, such as creative development and audience targeting.
• Cross analysis: The system analyzes a vast array of signals in real-time to set the optimal bid. These signals include device, location, time of day, language, operating system, and user lists. This comprehensive cross analysis of multiple data points for each user allows for more precise and effective bidding than is possible with manual adjustments.

Analysis of Incorrect Options

• Guaranteed results: Advertising performance is variable and depends on many factors beyond bidding, such as ad quality and competition. Automated bidding optimizes for goals but cannot guarantee specific outcomes.
• Higher CPAs: The goal of most conversion-focused automated bidding strategies is to achieve the lowest possible Cost Per Acquisition (CPA) or the most conversions for the budget, not to increase costs.
• Competitive analysis: While the bidding algorithm considers competition within an auction, its primary function is bid optimization, not providing detailed competitive analysis reports. Tools like Auction Insights are designed for that purpose.