Skip to main content



Google Ads Service

https://www.searchenginejournal.com/google-ads-performance-max-new-features-best-practices/469360/

 

Google ads had always been the leading major platform for advertising through auctions on sponsored searches. The company just released new features for Performance Planner to be compatible with Performance Max. With the new feature, advertisers would be able to “forecast” the future performance of their advertising/ marketing campaign and simulate the change in payoffs and effects in response to adjusting allocations to elements like budget, ROAS, or CPA targets. In the course, we learned that with sponsored search, the payment by advertisers and matching is dependent upon the advertiser’s value for the slot which considers the performance of the ad slot such as click-through rate and value per click. Previously, the advertisers’ value for the different slots and payoff would require a lot of estimation and so in such auctions, advertisers may not know if their “true value” is accurate. The Performance Max Campaign also allows for advertisers to test different allocations of advertising purchases to find the optimal projected outcome. This in a sense is allowing advertisers the ability to engage in advertising slots by automatically having the calculated payoffs of each slot available to the advertiser before making the decision so the advertising expenditures from all parties would always be in Nash Equilibrium theoretically since no one will knowingly pick the combination that returns lower payoffs. By helping advertisers select and determine the optimal strategy, it maximizes social welfare.

 

The Performance Max Campaign also improved its insights data to better capture and distinguish the potential customers. What this does relative to what we learned in class is that on top of the auction system for search and ad slots, there is most likely algorithms that conduct a matching between the type of advertisement and the corresponding targeted audience. Since the insights would get more detailed profiles on the users, the Google ads system would be able to help advertisers reach customers/ users that more greatly align with the potential customers. As a result, if the same advertisement had the same costs per click, when the matching better corresponds it will be more likely to convert to purchase and thus would be evaluated a higher value per click. This also aligns with the above paragraph in which the overall goal of Google Ads is to create better payoff from their advertising expenditure. Like the performance forecasting component of the service, by improving the insights and creating better matching to help the users determine which targeted advertising slot has the greatest value to the advertiser, it also maximizes social welfare since the advertiser would likely be willing to pay more to Google but also receive greater payoffs.

Comments

Leave a Reply

Blogging Calendar

November 2022
M T W T F S S
 123456
78910111213
14151617181920
21222324252627
282930  

Archives