Favourite Bidding Strategy Using Google Ads’ AI
Tabish Nishat shares his favorite Google Ads AI bidding strategy, highlighting the power of CPA campaigns. Google AI optimizes better than a team by analyzing data in real-time. After initial manual CPC setup, switch to CPA for improved conversion rates after two weeks.
Tabish Nishat’s Favourite Bidding Strategy Using Google Ads’ AI
Elevate Your Affiliate Marketing with AI-Driven Bidding Strategies
Understanding and leveraging the full potential of AI in advertising can transform your affiliate marketing campaigns. Google's AI offers a powerful toolset to optimize campaigns, and one of the most effective strategies is using Cost Per Acquisition (CPA) bidding. This approach, when applied correctly, can significantly enhance your conversion rates and profitability.
Maximizing Campaign Success with Google AI
Google's AI requires about two weeks to learn and optimize campaign data effectively. Unlike human capabilities, Google's AI processes vast amounts of background data in real-time, providing an edge that manual adjustments cannot match. To effectively utilize this capability, begin your campaign using manual CPC (Cost Per Click) for the initial phase. Gather sufficient data over 5-6 days, aiming for 40-50 clicks and 20-30 conversions before switching to CPA bidding.
Transitioning to CPA Bidding
Switching to CPA bidding isn't an immediate fix; patience is key. Initially, you might notice an increase in costs—perhaps your target CPA of $10 might rise to $12 or $13. This is a typical part of the learning phase. Instead of reverting to manual adjustments, reduce your CPA target by $1 and allow the campaign to run for at least two weeks. This period is crucial for Google AI to analyze and optimize your data fully.
The Power of A/B Testing
A/B testing can illustrate the effectiveness of transitioning to CPA bidding. For instance, in a home security campaign, the conversion cost initially stood at $68. By letting the CPA strategy optimize over the learning period, this was reduced to $61.84, resulting in an extra $18,200 net income per month. This demonstrates the potential improvements in conversion rates and cost efficiency achievable with a well-executed AI-driven bidding strategy.
FAQs
How long should I wait before evaluating Google AI’s impact on my campaign?
Allow at least two weeks for Google AI to learn and optimize your campaign data before making substantial evaluations.
What should I do if my CPA costs increase initially?
If your CPA costs rise, reduce your target by $1 and let the campaign continue for the full learning period without altering other variables.
Why is manual CPC recommended initially?
Starting with manual CPC helps gather sufficient data to inform the AI, creating a robust foundation for the CPA strategy to build upon.
Implementing these strategies can greatly enhance your affiliate marketing campaigns, driving better conversions and higher profitability.
Video transcript
Two weeks is what it takes for Google AI to.
learn and optimise your campaign data. Even with a team of 20 people, you.
can't do what Google AI would do for your campaignbecause it has all the background information, all the background data, which we, you, me, I, nobody can see,but the Google AI is seeing it in live-time and tracking it. CPA is my personal favourite. So when I set up a campaign,.
I start running it with the manual CPCand I have like enough data for for about 5 or 6 days. I get like 40-50 clicks, and I have like 20-30 conversions. I switch to CPA right away, and then I see how the how the CPA is doing. How the CPA is actually improvingmy conversion rate from before or if it's.
actually not improving my conversionrate from before, but here is a catch. So.
when you set up to the CPA campaign, youdon't expect the results from day one.
What happens most of the time, when youset up to your campaign to the CPA mode,.
sometimes your cost goes up. So let's sayyou have a conversion setting or goal of.
$10 and you send it to your CPA, and itgoes up to $12 or $13 the next day and you're.
like okay, no this is not working. Now itdoes not work like that. You just reduce.
your CPA target to $1 and let it run forat least two weeks. Two weeks is what it.
takes for Google AI to learn andoptimise your campaign data. Don't expect.
anything, I mean it can start from dayone, it can do wonders from day one, but.
let it run for at least at least two weeks. Two weeks is the minimum time for.
to let Google AI to analyse your dataand track it. Here is a campaign A/B testing.
of home security campaign, which I run. On the above, you can see we got the.
conversion rate of about $68 and on thebelow, you can see on the same campaign.
we were able to reduce our per costconversion to $61. 84. That's $18,200 extra net income on one campaign, per month. So that's the power of CPAwhich you can use and apply in your campaign.
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