Google is now testing a new Beta tool that could change the game – Search Bidding Exploration. This tool is part of Google's continued investment in AI and is designed to help advertisers reach new audiences by identifying search terms with lower volumes, but with high purchase intent.
What is Search Bidding Exploration?
Search Bidding Exploration is a new feature within Google's Smart Bidding which uses AI to optimize search ads specifically for conversions. Instead of focusing on high-volume search terms that have traditionally performed well, this tool targets lesser-known and generic searches – which are often overlooked.
By exploring these low-traffic questions, Google hopes to help brands uncover new consumer behaviors in search that often lead to conversions.
How does this affect advertisers?
Adfreak has read Google's documentation and it turns out that advertisers who use Search Bidding Exploration automatically bid Google Ads lower target ROAS the bidding with 10% to be able to bid higher on precisely those searches that are considered valuable. Despite a decrease in target ROAS, this can result in more clicks and conversions. Important to note is that the tool is currently only available for campaigns without spending limits which means that advertisers should have flexibility in their spending.
Criticism and transparency
In the past, AI-powered tools like Google have Performance Max faced criticism for having limited visibility, low engagement with new customers and targeting simpler customers to get conversions. Search Bidding Exploration can potentially give Performance Max another dimension in targeting and reporting. This would increase transparency and trust in the campaign format by more clearly showing which low traffic queries are performing well. It is still unclear how this will appear in the reports.
Future development
As it stands now, Search Bidding Exploration is in beta testing, which means that only a limited number of customers have access to it. Applying this AI-powered approach based on Google's vast amount of collected data – they can maintain their leading position in digital advertising.
This Beta feature is also being released amid predictions that Google's share of the US search advertising market could fall below 50% by 2025.
