Your premium beverage customer set a target return on ad spend (tROAS) bid strategy in Search Ads 360. They noticed that when they evaluate how the strategy is doing, there’s limited consistency and minimal automation. What might be happening?
- They didn’t make optimizations or adjustments post-bid strategy launch.
- They reviewed performance data after conversion delay cycles passed.
- They began the evaluation after week four.
- They began the evaluation between one to two weeks.
Explanation:
It’s important to allow at least two weeks from the launch date for a bid strategy to calibrate properly before starting any evaluation of its performance. Starting the assessment too early, such as within the first one to two weeks, doesn’t give the algorithm sufficient time to adjust and learn from the data. This initial calibration period is vital, especially since consistency and the level of automation depend on the amount of conversion data and the algorithm’s learning progress.
After the bid strategy has had time to calibrate, which usually happens around the second or third week, it’s then appropriate to review and see if any constraints set within the bid strategy are hindering its optimization. If so, and if it aligns with the customer’s business objectives, adjustments to these constraints should be made to enhance the strategy’s performance and automation capabilities.
Chapter 10: Measure Bid Performance in Search Ads 360
If your premium beverage customer set a target return on ad spend (tROAS) bid strategy in Search Ads 360 and is experiencing limited consistency and minimal automation when evaluating the strategy’s performance, several factors could be contributing to this issue. Here are some potential reasons:
- Insufficient Data Volume:
- Bid strategies, especially those based on tROAS, require a sufficient volume of data to make accurate predictions and optimizations. If the campaign or ad group has limited historical data, the bid strategy may struggle to automate effectively.
- Seasonality or Market Changes:
- Seasonal variations or sudden changes in the market can impact the performance of bid strategies. If there are fluctuations in consumer behavior, competitive landscape, or external factors, it may affect the bid strategy’s ability to maintain consistency.
- Bid Strategy Settings:
- Review the settings of the tROAS bid strategy. Ensure that the target ROAS value is realistic and aligns with the business goals. Additionally, check other settings such as bid limits, attribution model, and conversion settings to ensure they are configured appropriately.
- Limited Targeting Options:
- The bid strategy’s effectiveness can be influenced by the targeting options selected. If the targeting is too narrow or broad, it may impact the ability to consistently meet the tROAS goal. Consider refining targeting parameters based on the campaign objectives.
- Bid Strategy Exclusions:
- Examine if there are any exclusions or limitations set within the bid strategy that may be impacting its automation. For example, bid strategy exclusions based on specific audiences, devices, or locations could limit its ability to optimize effectively.
- Recent Changes in Ad Groups or Campaigns:
- If there have been recent changes in ad groups, campaigns, or targeting settings, the bid strategy may take time to adapt. Changes such as new keywords, ad creatives, or adjustments to targeting can impact the bid strategy’s performance.
- Data Lag or Reporting Delay:
- Sometimes, there may be a lag in data processing or reporting within Search Ads 360. Check for any delays in data updates and reporting to ensure that you are evaluating performance with the most recent information.
- Competitive Bidding Landscape:
- Changes in the competitive bidding landscape can impact the bid strategy. If competitors adjust their strategies or bid aggressively, it may affect the performance consistency of the tROAS bid strategy.
To address the issue, it’s recommended to closely monitor the bid strategy’s performance over time, analyze any recent changes, and consider adjusting settings based on the evolving campaign dynamics. Regularly review reports, leverage Search Ads 360 insights, and, if needed, consult with Google Support for specific guidance on optimizing tROAS bid strategies in your customer’s premium beverage campaign.