How AI algorithms can automate bidding strategies in PPC campaigns, minimising costs and maximising ROAS – Digital Transformation News

By Kumar Saurav

Artificial Intelligence (AI) has truly revolutionized Pay-Per-Click (PPC) in the modern marketing landscape. A report from Markets Insider suggests that over 60% of consumers click on PPC ads at least once a week. The smartphone user segment has garnered immense marketing attention in the last year and are the major driving force behind why marketers are constantly resorting to AI to improve their campaign efficiency.

Personalisation through AI

The deployment of AI helps yield good results through hyper-personalised and targeted advertisements. It has helped marketers to analyse data and optimise PPC campaigns with the ultimate objective of maximising ROAS (Return on Ad Spend). This plays a significant role in boosting the overall ROI of an organisation. This coupled with machine learning is reshaping the advertising ecosystem. AI-powered automated bidding can process and analyse huge chunks of data including historical metrics and predict future trends which are instrumental in making real-time bidding decisions with precision that are ideal for attaining the campaign objectives.

Improved Targetting

AI also helps with better targeting and improve the overall efficiency of the campaign. Relying on conventional targeting methods based on demographics and location are not very likely to create converting campaigns. AI helps in behavioural targeting by giving a better insight into the customer behaviour, preferences which help craft campaigns that resonate with the audience and influence their purchasing decisions. This consequently, boosts sales and increases ROAS. In addition to this, AI along with natural language processing can identify the particular elements of an ad that performed well in the past like CTAs, headlines, descriptions, etc. This helps in creation of compelling and impactful ad copies that convert.

Automated Bid Optimisation

AI has particularly transformed bid optimisation by allowing marketers to make dynamic and real-time bid adjustments. AI utilise machine learning algorithm to process data and optimise ad placements, thereby minimising expenses. The algorithm thoroughly scrutinises competition around the targeted keyword, conversion rates and financial limitations. AI-backed real-time bidding based on prevailing market conditions helps in efficient budget allocations by automatically fine-tuning bids to adhere to predetermined thresholds. Besides, AI is adept in catering to the constantly evolving shifts in user behaviour and dynamic market conditions. Based on this, it increases bids for the successful ads and keywords to capitalize on their effectiveness and reduces bids for the ones that are not performing optimally or reallocates their resources to more promising avenues.

Better Programmatic Ads

Placing the right ads in front of relevant users is the core of programmatic advertising and this is attainable through harnessing the power of AI and machine learning. Employing AI-powered platforms to control PPC bidding reduces the likelihood of bidding on ads that drive low quality leads. This, in turn, maximises the ROAS.

AI-driven automated bidding can swiftly adapt to the fluctuating digital marketing landscape maximising ad visibility and minimising costs despite shifting keyword trends and user behaviours. AI streamlines PPC campaign management through the constantly analysing a plethora of data which helps the accurately anticipate how an ad will perform in the future.

The author is chief strategy officer, AdCounty Media

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