AI, PPC and Smart Bidding

Alphabet blocks spelling out SEM
Search Engine Marketing and Machine Learning

One of the things I have observed in my (still nascent) consulting career is the eagerness of entrepreneurs / (new to digital) marketers to adopt the ‘Smart Bidding’ strategies offered by Google within Adwords (now Google Ads). And this is understandable. Entrepreneurs have a lot of things to take care of, and therefore, why not leverage the AI powered options provided by Google, right?

In my opinion (and limited experience), I have rarely seen this work. Here are a few reasons why I think businesses should not adopt these Smart Bidding strategies too early:

  • Performance: The smart bidding strategies are based on Machine Learning algorithms. And these algorithms need historical data to be trained upon. I genuinely believe that every business is unique. And therefore, even if reasonably relevant data exists from other businesses in the same industry and market, it is no guarantee that an algorithm based off that data might be the best one for your business.
  • Insights: Search Marketing (both Paid and Organic) can provide a wealth of information to businesses. What are the search terms that your users are using to find the information that you provide, how are they interacting with your ads, your website, what are your competitors doing? The use of manual bidding forces you to dig deep into all of this data, analyse and study them to understand what’s working and what’s not and in the process, gather very valuable marketing insights. When you use Smart Bidding, you do not need to analyse all of this closely, thereby losing out on the opportunity to learn.
  • Competition: The beauty of Paid Search Marketing (or PPC – Pay Per Click), is that it is based on an auction process and what you pay (and where you rank) is influenced significantly by what your competitors are up to. So what happens if you and your competitors are both using Smart Bidding techniques?

I can understand why Google (and Facebook) are developing these Machine Learning based techniques. It is in their interest to simplify the process of advertising on their platforms so that businesses no longer feel that they have to invest in PPC experts to do Search Marketing. And I am sure that, over a period of time, their algorithms will keep improving. However, for the reasons listed above, I believe that PPC experts would continue to have a key role to play within any business looking to leverage Paid Search Marketing.

This post was inspired by this article – Frederick Vallaeys on why digital marketers will still have jobs and what they’ll look like in an AI world

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