Real-Time Bidding Algorithm: Why automated bidding makes sense

Diego Sternberg By Diego Sternberg on 09/10/2015

What can the real-time bidding algorithms, speed and flexibility of automation do for you? While some advertisers still insist on manual optimization, utilizing automated bidding offers key advantages to make your search marketing campaigns more successful. And your life easier.

Bid management is a key part of paid search engine marketing, with a direct impact on your results. You already knew this. Nevertheless, a solution as simple as a real-time bidding algorithm can be the cure for one of the most tedious activities in the day of a digital marketing manager – especially in enterprise SEM – which leaves you with hardly any time to strategize.

Automated bidding (and the real-time bidding platforms that use it) is a fantastic solution to get the most out of a campaign. Aside from the benefits of modern automation platforms to perform important tasks such as geo targeting, here are some reasons why adopting an automated bidding platform makes sense:

Time is an asset. Use it wisely.
There is no need to spend all day managing bids manually. This is exactly what real-time bidding optimization is for. Leave this task to specialized software and focus on what’s important: finding growth opportunities, running experiments, optimizing landing pages…in other words, devote yourself to the critical tasks that need your attention.

The search auction is a highly dynamic environment.
If you are not calculating bids daily (or even more often than that), then you are not maximizing your return. Even with the help of spreadsheets, calculating keyword bids manually can take hours, thus limiting your availability to do it more frequently. This is why automation features such as comprehensive reporting and a real-time bidding algorithm make more sense than ever.

Rely on mathematics.
Algorithmic or rule-based bidding can optimize the efficiency of your campaign. Relying on “gut feelings” and running one-off experiments may feel sufficient, but you are likely to be missing opportunities. With automated bidding powering a real-time bidding advertising strategy, you can calculate bid changes in real time, making sure bids are set exactly where they should be. This will lead to more clicks and conversions.

Mind the long tail.
Automated tools are especially useful for long-tail keyword bidding. Some bidding algorithms have a clear advantage in making statistically significant inferences where there is limited performance data per keyword.

Data science.
Search marketing campaigns require you to process huge volumes of data. While you would only be able to consider one or two signals manually, an automated, real-time bidding algorithm can process dozens of signals at the same time to help you make bidding decisions.

Centralize your insights.
Managing your campaigns from one tool (rather than disparate spreadsheets) can be a lifesaver. The automation provided by bid management software lets you easily pull out the data you need, with no keyword or row limitations. You can also create customized dashboards with a control panel that responds to your specific campaign needs. Everything you need — from a single source.

Don’t worry. You won’t be expendable. At the end of the day, promotions go to marketers with successful results. You should be spending your time creating innovative marketing strategies, rather than sitting in front of spreadsheets for hours at end. The proper software can save you time so that you focus on analyzing data and making more-strategic decisions. Creative marketing strategies will always need your intervention. You can’t leave those to the robots. And while you’re being strategic, you can let the real-time bidding algorithm do the math and let the software spit out the PPC analysis reports.

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