August 12, 2021
YouTube & Display Campaigns Now Included in Google Ads Attribution Models
With the importance of Smart Bidding growing across Google campaigns, and YouTube in particular, it is important to familiarize yourself with its nuances. Knowing the actual options is only step one. More important is knowing how to set your campaigns up for success when you choose to leverage them.
Before we get into a few definitions, it is important to note that Smart Bidding can only be leveraged with Action Format campaigns (tCPA and Max Conv.) to generate sales, leads, or signups, such as Video Action Campaigns. But there is also one option for Reach formats, like bumper ads, primarily intended to generate awareness.
As noted above, Google recommends setting budgets anywhere from 10x to 15x in relation to cost per conversion (CPA). That means, if you want to use tCPA and you have a campaign avg. CPA of $85, you will need to set the budget to at least $1,275. Want to use Max Conv.? Then your budget would need to be at least $850. Sometimes these bid to budget recs may seem like a stretch, but we have seen time and time again that they are necessary to help set up the campaign for success. Please note, we recommend starting campaigns on Max Conversions to help set a baseline CPA before swapping to tCPA.
Situation: Campaign running on tCPA is flagged as Limited By Budget (LBB)
Bid to budget ratio: Initially sat ~10x current CPA
Update: Increased budget to 15x current CPA
Results: After updating (and excluding the 2 week learning period), we saw both growth and efficiency gains.
While there isn’t a one size fits all approach, we hope these tips help to guide your YouTube smart bidding set up. For more information on how to take full advantage of the smart bidding on YouTube, contact our team.