The Three Main Automation Components of Smart Display Campaigns

Smart display campaigns, operated by Google, allow businesses to use the power of Google’s machine learning to:

• Connect your business to prospective customers who may be interested in your products                                                           
• Create captivating image, native, and text ads that fit anywhere across the GDN                                                                              
• Set the right bids to meet your performance goals

Smart display campaigns have automated components to help you reach audiences on Google partner platforms and Google search result pages. The ads are created for you after you enter some basic information, like your daily budget for ads and keywords you want in your ads.

Let’s take a closer look at what the automated components are and what they do. 

 

Automated Bidding Strategies: 

The cornerstone of any smart display campaign is the use of automatic, or instant, bidding strategies. Think of a real life auction. Bidders raise paddles. That means they need to be in the room or have a representative who knows their wishes. With smart display campaigns, auctions are automated. You set your limit (i.e. to what amount you’re willing to raise your paddle) and an algorithm honors your wishes. 

Traditional manual bidding can be time-consuming and challenging to keep up with the dynamic nature of online auctions. Remember eBay and the last second frenzy before an auction ends? There’s no need for you to be in front of your screen during the digital ad equivalent of that experience. 

Smart display campaigns leverage machine learning algorithms to analyze vast amounts of data – like the location the ad will be displayed in and your maximum bid – in real time. 

When you set up a smart display campaign, you have to figure out which way you want Google to handle automated bidding for you. Methods include:

• Target CPA (Cost-Per-Acquisition):  This preset option focuses on getting as many conversions as possible while not going over the absolute maximum you’re willing to pay for that conversion. The algorithm learns from past performances from other users and makes bid adjustments to increase the likelihood of conversions. Conversions can include a visitor seeing your ad, or a user clicking on an ad. You determine what you consider a worthy conversion, and what you’re willing to pay for that transaction. 

 

• Target ROAS (Return on Ad Spend):  This is for  businesses with a specific return on investment goal, like “We’ll pay $X for our ad to appear first in this region.”  This predefined option automates bids to maximize the revenue generated from each ad spend. This means that the algorithm automatically determines if and what a user search will generate a conversion with something you consider important, like a click. Target ROAS will bid high on searches that meet that criteria. If the algorithm predicts that the search isn’t likely to generate a high-value conversion, it’ll bid low.                                                           
• Maximize Conversions:  This strategy is best for companies looking to drive the highest number of conversions within a given budget. That means with this option, the algorithm automatically adjusts bids to optimize for conversion volume, which is defined as the total monetary value of conversions in a given time period. A conversion can be something big, like getting a lead or sale, or it can be something small, like getting someone to sign up for an email newsletter.

 

Dynamic Ad Creatives: 

Smart display campaigns create ad campaigns for you. That means you don’t have to worry about text, images, or links. The algorithms automatically deliver personalized and relevant content to users. Rather than creating static ads for different audience segments, smart display campaigns can adjust content based on user behavior, preferences, and demographics. Here’s what this means:

 

•  Dynamic Remarketing:  By tracking and then scrutinizing user interactions with a website, algorithms deliver dynamic remarketing. This means users who have previously visited a site will be automatically shown ads that include products or services that the user has shown interest in. This type of content means users might trigger re-engagement and conversion.

 

• Dynamic Prospecting:  When it comes to reaching untapped customers, dynamic ad prospecting tailors content based on users’ habits, interests and behaviors. This data can be accessed by algorithms even if the user hasn’t visited the advertiser’s website before. Even if a user doesn’t click on your ad, they’ll develop brand awareness if their eyes even scroll past your ad. That’s a win for everyone. 

 

• Automated Image and Copy Optimization:  Through machine learning, smart display campaigns automatically test and optimize various combinations of ad copy and images to identify the most effective combinations. This continuous testing helps enhance ad performance over time.

Audience Targeting and Segmentation: 

“Smart” smart display campaign makes sure that ads are reaching the right audience with the right message. So enabling automatic understanding of audience targeting and segmentation helps businesses find users who are most likely to engage with their ads. There are three types of audiences to consider when setting up a smart display campaign. They are:

 

•  In-Market Audiences:  If a person has actively researched or even found your website before this qualifies as what’s known as “intent to purchase.” They’re going to buy a specific product or service at some point. It just depends on when. The when is influenced by many things, including the price of your service or product, the user’s budget, and more. The algorithms that power smart display campaigns show your ads when a user is most likely to act and do something.                        
• Affinity Audiences:  These groups of potential customers are those whose search history, demographics, and habits suggest they have an affinity, or natural inclination, to buy your product or service. When enabled, this smart display automation component ensures that ads reach users who have demonstrated an interest in specific topics.                                     
• Custom Intent Audiences:  If you suspect there’s a group of people out there who may be interested in your goods and services, but may not even realize how interested they are, you can create custom intent audiences. This will then show ads to users based on specific keyword searches. This makes sure ads appear to those who use certain keywords or visit websites (which you identify ahead of time) that are related to your business or service. This is particularly great for niche businesses. 

If you are already pretty advanced with Google Ads, and you’re seeing the results you want with PPC campaigns, you may want to look into smart display campaigns. The fact that everything from bidding strategies, ad content, and audience targeting is automated is a time saver. That said, you don’t want to trust technology and algorithms with everything. 

We suggest a human first approach when it comes to ad campaigns. At least to begin with, those running the ad campaigns should be real human beings. After all, your ads are trying to reach real humans. 

We can help you get started and manage paid ad campaigns. Look at what we’ve done for dozens of clients. We’ve gotten more people on their sites, and more people making transactions and conversions, after these companies invested in us (Which is really an investment in your own company’s health).

Reach out to us so we can start chatting about your best ad strategies.