More AI ! Adwords removes "optimize for conversions"

What is happening?
 

The ad-rotation settings you are used to seeing in Adwords below are changing, to make more use of Google's AI algorithm.

Ad-Rotation setting.png

On the 25th of September 2017, there will be three updates to "improve" ad rotation settings:


1.    There will be two ad rotation settings options:


      • "Optimise" will use Google's machine learning technology to deliver ads that prefer best performing ads in your ad group.


     • "Rotate indefinitely" will deliver your low performing ads more evenly with higher performing ads for an indefinite amount of time.


 2. Campaigns will be using Smart Bidding "optimise" regardless of their other ad rotation settings.


 3. Ad rotation settings will be available at the ad group level.

 

How will it effect Adwords campaigns?


Starting 25th of September, "optimise for conversions" and "rotate evenly" will be opted out from the Adwords interface.

 

New Ad rotation Settings.png

There will be some benefits for advertisers:


•    Campaigns using "optimise for clicks", "optimise for conversions" or "rotate evenly" will use only "optimise" instead, which will assist novice users by removing complexity.
•    Campaigns using smart bidding strategies, such as Enhanced CPC, target CPA, or target ROAS bidding strategies, will always be set to “Optimise” their ad rotation, regardless of how they set their ad rotation settings. This is less control, but potentially good for a novice user.
•    Advertisers can also manage new ad-rotation settings at both the campaign and ad-group level.
•    Novice advertisers may see better performance of ads from making this ad-rotation change.


There are also some disadvantages:


•    Advertisers can no longer set ads to "optimise conversions" or "optimise for clicks" explicitly. This taking away of control may hurt advertisers who spent the time to prove "optimise for conversions" or "optimise for clicks" was the best performing mode for their account.

 

Why would Google do this?


The right ad rotation can help you to show your best performing ads to users looking for what you have to provide. However, it’s not always clear which ad-rotation makes the best sense for your business, so Google is simplifying ad rotation to two settings: “optimize” and “rotate indefinitely.”


Google is also trying to simplify Adwords in general, so more people without analytical capabilities can use it and get great results. They may also see an Increase in budgets, as "optimise for conversions" may have reduced clicks (vs optimise for clicks), and therefore it was reducing spend on Google's products like Adwords, GDN and YouTube. Google rarely makes changes that hurt their bottom line!

 

What should you do to prepare?


This new ad-rotation feature will occur automatically starting 25th of September 2017. Make sure your Adwords conversion pixels are firing properly. This will be key. If you are over counting or under counting conversions it may really skew ad rotation in an unexpected way. it’s always best to keep a close eye on your accounts following a change like this! Finally jump right in and start to set ad rotation at an adgroup level, especially where you are launching new copy and want to rotate evenly for a period of time. 

A Nimbull Digital Marketing Director can help you maximise this opportunity. Reach out with questions any time. We'd love to hear from you.