I already devoted a few articles to the importance of successful remarketing strategy and the new possibilities becoming available for businesses online. Google AdWords has always been a few steps ahead of other advertising platforms and they keep developing towards more automated an easier management.
Using automatic bidding strategies like Target CPA is one of the directions in which Google AdWords is going. As the algorithms get smarter, manual CPC bidding is starting to underperform in comparison to automation. New keyword matching rules eliminate the need of endless keyword variations to be entered manually. The next step is powerful remarketing for search which enables the system to bid higher when people who have visited your website are searching for your products again. All these changes are shaping something called Google AdWords 2.0 and in a series of articles I will gradually introduce to it.
The recommendation of Google to take maximum advantage of their algorithms with Google AdWords is to structure your campaigns by keyword match. For example, have one campaign with broad match modified keywords only.
Once you have created a campaign with broad match modified keywords, you must choose Target CPA as a bidding setting. To do this go in the campaign settings and choose from the bidding strategies portfolio. Target CPA works with campaigns which have at least one conversion per day the last 30 days, as it needs data to correctly use bidding. If the campaign meets this requirement, the algorithm will automatically adjust the bids throughout the day based on when you are likely to get a conversion.
You must enter a value which would correspond to your desired cost per conversion. Target CPA will always target an amount of money spend per acquisition (sale, generated lead, subscription, any kind of valuable action you would like web visitors to complete on your website). Make sure your CPA is lower than the daily budget of the campaign.
Once you have the correct settings, Google’s best practices with their newest version of AdWords is advising that you add a remarketing list to your campaign. You can create a remarketing list using Google Analytics or in Google AdWords itself. You can base the list by URL(for example visitors of a particular page of your website). You can upload a list of emails and create a remarketing list out if them.
Then make sure your targeting setting is set to Target, not Target and Bid. This will allow the campaign to work for both people who have not been on your website and the remarketing list of previous visitors.
As people form the remarketing list are likely to convert once they see your ad again, you should make a bid adjustment for this list. In this way, whenever a previous web visitor is searching for a keyword from your list your ad will appear higher.