What is a critical aspect of the bidding strategy in Smart Bidding?

Smart Bidding is an advanced bidding strategy that uses machine learning to optimize for conversions or conversion values in real-time. A critical aspect of this strategy is the consideration of expected conversion value. This means that Smart Bidding evaluates and adjusts bids based on predictions about how likely a specific ad interaction will lead to a conversion and what the estimated value of that conversion might be.

By focusing on expected conversion value, advertisers can maximize their return on investment by more effectively allocating their budgets to where they will have the greatest impact. This approach allows the algorithms to take into account numerous signals at auction time, such as device type, location, time of day, and user behavior, to optimize bids accordingly.

In contrast, fixed-rate bidding does not adapt to changes in the audience or market conditions, which limits its effectiveness. Also, completely avoiding bid adjustments would negate the advantages offered by Smart Bidding strategies, which thrive on real-time data and responsiveness. Concentrating solely on brand awareness is more aligned with campaigns targeting visibility rather than performance-driven results, which Smart Bidding fundamentally aims to enhance.