What is the Maximize Conversions bidding strategy on Google Ads?

Basics of Maximize Conversions Bidding Strategy in Google Ads

What is Maximize Conversions and How Does it Work?

1. Maximize Conversions is an automated bidding strategy in Google Ads that aims to generate as many conversions as possible within your daily budget.
2. Google's machine learning algorithms analyze historical campaign data, contextual signals, and real-time auction data to set bids for each individual auction, optimizing for conversions.
3. The algorithms predict the likelihood of a conversion for each auction and adjust bids accordingly to maximize the number of conversions.
4. For example, if your daily budget is $100 and the algorithm predicts that a $5 bid has a high chance of leading to a conversion, it may allocate more of your budget to that auction.

Differences Between Maximize Conversions and Other Automated Bidding Strategies

• Target CPA: Focuses on achieving a target cost-per-acquisition (CPA) while generating as many conversions as possible. Maximize Conversions, on the other hand, solely aims to maximize the total number of conversions without a specific CPA goal.
• Maximize Clicks: Aims to drive the highest possible click volume within your budget. Maximize Conversions focuses on generating conversions rather than clicks.
• Target ROAS: Seeks to achieve a target return on ad spend (ROAS) by optimizing for conversion value. Maximize Conversions does not consider conversion value and optimizes purely for conversion volume.

Ideal Use Cases and Campaign Types for Maximize Conversions

1. Campaigns with a clear conversion goal: Maximize Conversions works best when you have a specific conversion action you want to optimize for, such as sales, sign-ups, or lead form submissions.
2. Campaigns with sufficient conversion data: Google recommends having at least 30 conversions in the past 30 days for the algorithm to effectively optimize performance.
3. Campaigns with a flexible CPA: If you don't have a strict CPA target and can tolerate fluctuations in CPA to achieve more conversions, Maximize Conversions can be a good fit.

Limitations and Things to Watch Out For

• Requires giving up manual control: With Maximize Conversions, you rely on Google's algorithms to set bids, which may not always align with your specific goals or insights.
• Potential for high CPA: As the strategy focuses on maximizing conversions, it may lead to a higher CPA compared to manual bidding or Target CPA.
• Limited transparency: Google's bidding algorithms are a "black box," providing limited visibility into how bids are determined for each auction.

Setting up Maximize Conversions

Maximize Conversions is a Google Ads smart bidding strategy that automatically sets bids to help get the most conversions within your budget. Here's a step-by-step guide to enabling it for your campaigns:

1. Meet the Conversion Tracking Requirements

Before you can use Maximize Conversions, you must have conversion tracking set up for your account. This allows Google Ads to optimize based on actual conversion data.

To set up conversion tracking:

1. Click the tools icon in the top right corner of Google Ads.
2. Under "Measurement," select Conversions.
3. Click the plus button to create a new conversion action.
4. Choose the source (website, app, phone calls, or imports) and follow the prompts to generate your tracking tag.
5. Install the tag on your website or app.

Maximize Conversions requires at least 30 conversions in the past 30 days to have enough data to optimize effectively. For low-volume accounts, consider Maximize Clicks or Target CPA instead.

2. Enable Maximize Conversions at the Campaign Level

You can set Maximize Conversions as the bidding strategy when creating a new campaign or switch existing campaigns to it.

For a new campaign:

1. Click Campaigns in the left page menu.
2. Click the plus button and select "New campaign."
3. Choose your campaign goal and select "Conversions" as the bid strategy.
4. Select "Maximize conversions" and set your average daily budget.

To change an existing campaign:

1. Click Campaigns in the left page menu.
2. Select the campaign you want to edit.
3. Click "Settings" in the page menu.
4. Select "Change bid strategy" and choose "Maximize conversions."
5. Set your average daily budget.

3. Configure Campaign Settings for Best Results

While Maximize Conversions automates bidding, you still control other key campaign settings:

• Budget: Set a daily budget that aligns with your goals. Google recommends starting with 10-30x your target cost-per-acquisition (CPA). So if you want to pay $10 per conversion, budget $100-$300 per day.
• Targeting: Use relevant keywords, audiences, demographics, and placements to reach high-converting users. Avoid overly narrow targeting that limits data.
• Ad Rotation: Let Google optimize your ads by selecting "Optimize: Prefer best performing ads." This aligns with Maximize Conversions' data-driven approach.
• Ad Schedule: If your conversions tend to happen on certain days or times, adjust bids accordingly using ad schedule bid adjustments.

4. Monitor Performance and Optimize

Maximize Conversions needs time to learn and stabilize, so avoid making frequent changes. However, you should still monitor performance regularly.

Key metrics to watch:

• Conversions: Total conversions and conversion value. Is Maximize Conversions driving more than other strategies?
• CPA: Cost-per-acquisition. Is your actual CPA in line with your targets?
• Conversion Rate: The percentage of clicks that convert. A low rate may indicate targeting or landing page issues.

If performance is not meeting your goals after 2-4 weeks, consider these optimizations:

• Expand targeting if volume is low or narrow targeting if traffic seems irrelevant.
• Test new ad copy and extensions to boost CTR and conversions.
• Improve landing page relevance, speed, and usability to increase conversion rates.
• Raise budgets if campaigns are limited by budget and performing well.
• Adjust CPA targets up or down based on your actual ROI.

Advanced Maximize Conversions Strategies

Using Maximize Conversions with a Target CPA

While Maximize Conversions aims to drive the most conversions within your budget, you can add more control by setting a Target CPA:

1. In your campaign settings, navigate to the Bidding section.
2. Select "Maximize Conversions" as your bidding strategy.
3. Check the box for "Set a target cost per action."
4. Enter your desired Target CPA based on historical data or goals.

Google Ads will optimize bids to achieve an average CPA close to your target. However, note that setting too low of a target may decrease conversion volume. It's best to start with a higher Target CPA and gradually lower it as the algorithm optimizes.

Combining with Other Smart Bidding Features

Maximize Conversions can be enhanced with additional smart bidding features:

• Seasonality Adjustments: If you expect a temporary conversion rate change due to sales or events, use Seasonality Adjustments to inform the algorithm. For example, increase your conversion rate adjustment by 50% for a week-long promotion.
• Attribution Models: Maximize Conversions is compatible with all attribution models. To better align your strategy, consider switching from last-click to a multi-touch model like Data-Driven Attribution. This helps the algorithm optimize based on assisting keywords and interactions.

Migrating from Manual CPC to Maximize Conversions

If you're currently using Manual CPC bidding but want to test Maximize Conversions, follow these best practices:

1. Ensure conversion tracking is properly set up and recording accurate data.
2. Evaluate your current CPA and use it as a benchmark Target CPA for Maximize Conversions.
3. Allow for a learning period of at least 2 weeks for the algorithm to gather data and optimize.
4. Don't make significant changes to your campaign structure, ads, or landing pages during the learning period.
5. Monitor performance closely and adjust Target CPA or budget as needed.

For a smooth transition, consider running an experiment to test Maximize Conversions on a portion of your traffic before fully switching over.

Troubleshooting Common Issues and FAQs

Q: My campaign isn't getting any conversions after switching to Maximize Conversions. What should I do?

A: First, double-check that conversion tracking is set up correctly. If data is accurate:

• Ensure your budget is sufficient for at least 10-15 clicks per day, as the algorithm needs data to optimize.
• Check your Target CPA - if it's too low, gradually increase it to a more realistic level.
• Evaluate your ads, keywords, and landing pages. Low-quality components can hinder conversions.

Q: Conversions are lower than when I was using Manual CPC. Should I switch back?

A: Resist the urge to revert immediately. The learning period can take several weeks, so performance may be lower at first. If conversions are still low after 4+ weeks:

• Adjust your Target CPA higher to see if volume increases.
• Add negative keywords to avoid irrelevant searches.
• Revisit your ads and ensure they're highly relevant to your keywords and landing pages.

Only switch back to Manual CPC if performance doesn't improve after significant testing and optimization on Maximize Conversions.

Q: Can I use Maximize Conversions for lead generation campaigns?

A: Yes! Maximize Conversions works for any conversion type, including sales, signups, and leads. Just ensure your conversion tracking is set up to accurately record the actions you care about.