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Home > Blog > Digital Marketing > PPC >

Google Ads: Smart Bidding Performance with Top Signals

Having a smart bid strategy in Google Ads goes a long way to helping you by saving your time, budget, and ultimately increase your return on investment (ROI).

which-is-a-benefit-of-advertising-online

Sometimes, pay-per-click (PPC) advertising can be a confusing and frustrating realm. With Google Ads, you have a lot of tools to give you insights on your campaign performance. The Bid Strategy report by Google is one such tool, which provides information on the top bidding signals in your PPC campaigns.

In this article, we’ll explore top signals, and show you how they can bolster your bid strategy in Google Ads.

What are Top Signals?

Top signals are the core aspects of a campaign that influence its performance. In a smart bidding campaign, Google will automatically optimize these signals depending on whether users are more likely or less likely to convert.

Typically, top signals are used to select conversion-based strategies like Target CPA (cost-per-acquisition) and Maximize Conversions.

Some examples of top signals may include, but are not limited to:

  • Device Type – on which device a user is most (or least) likely to convert for this campaign?
  • Location – which locations have the most (or least) relevant audience for this campaign?
  • Day of Week – on which day of the week is your campaign most (or least) likely to drive conversions?
  • Time of Day – at which time of the day is your campaign most (or least) likely to convert?
  • Keywords – which keywords are most (or least) likely to trigger your ad.

 

Hidden Top Signals

With the data segments of Google Ads, there are several signals that remain completely invisible, such as browser and operating system, prior website interactions, and product attributes.

Even if this data was available to analyze, at present, there is no way to manually modify your bids based on hidden signals:

top signal

Through machine learning, Google Ads monitors every visible and hidden signal with every search query and ad click. This advanced technology can pinpoint minute variations in user behavior that may stem from slight differences in device use, location demographics etc.

The system can then cross-reference these signals with historical performance data on click or conversion rates, and then it will increase or reduce your bids accordingly to meet your targets.

Where Are Top Signals Located?

You can view the top signals in the Bid Strategy report. Keep in mind that this report is only available for portfolio bid strategies.

So, how do you find the Bid Strategy report in Google Ads?

In Google Ads, navigate to Tools > Shared Library > Bid Strategies. After that, select a portfolio strategy as shown below.

top signal

It’s possible that you’ll see combinations of signals such as time and keyword. Red signals are less likely to convert in that specific strategy, while green signals are more likely to convert.

For example, let’s say that you set a mobile device bid adjustment of 50%  and your bids are now 50% lower on mobile.

A significant benefit of top signals is the ability to create unique combinations of signals. So, if at 1pm on Monday, a user is 10% more likely to convert on mobile than desktop, your bid can reflect that chance.

Conversely, if they are 10% less likely to convert on mobile than desktop, your bid will reflect that if you are using top signals.

Why You Should Care About Top Signals

In PPC advertising, the more you know and understand about your audience, the more power you have to create a high-performing bid strategy in Google Ads.

When you take contextual signals into account, and think about how these signals impact your automated bids, you will be able to make smarter decisions about your strategy.

Imagine one of your keywords has a red signal. This warning may indicate that this particular keyword is a poor match for the bid strategy in question. It could also be a sign that you need to optimize your ad or landing page to increase the chances of conversion.

How Can Top Signals Help Your Bid Strategy in Google Ads

There are several benefits for advertisers when using top signals as a guide for improving bid strategy:

Reduce wasted spend

With top signals in mind, PPC advertisers can pause keywords that are less likely to drive conversions on a campaign. Doing this will minimize wasted spend, ensuring your budget goes further.

Identify opportunities

You can analyze performance across all channels and devices, and identify which devices are most likely to deliver a more conversions. With this insight, you can increase bids on that device to earn a higher ROI.

Refine location targeting

It’s easy to waste money showing your ads to people in the wrong locations. With top signals, you have the guidance you need to find out where your audience resides. Use this information to expand or reduce your target location radius, so that you can maximize the returns on your campaign and bids.

Master ad scheduling

Knowing when your audience is most active and open to conversion is a great help. Look at the report data to find out the best times of the day to show your ads, then set up your ad schedule to make sure your ad is shown to as many prospects as possible each day.

You can also use the report to identify the best days of the week, and increase your bids accordingly to drive conversions on that day.

Understand signal combinations

If you see that people are searching for specific keywords in specific locations on a specific day, you can leverage these insights. For example, if people search for “running shoes” on a Friday morning in Los Angeles, you can tailor your ads for running shoes to reach these prospects at that precise location and time each week.

Challenges of Using Top Signals for Your Bid Strategy in Google Ads

Unfortunately, there are some drawbacks to this tactic. Here are some challenges to be aware of when using top signals:

Delayed insights

You won’t get any data about top signals until after your PPC budget has been exhausted by a particular keyword. This may lead to some expensive lessons if you are targeting the wrong keywords!

Lack of clarity

It’s not always possible to find out why you have received a down signal (red) or up signal (green).

No comparison feature can cost you opportunities

There is no comparison tool to analyze current performance vs. previous performance for that particular signal.

Let’s say you put a keyword in your negative keywords list because it received a down signal. Its fortune may turn around later, and it may become a potent keyword that performs well. However, you won’t be notified of that automatically, so you need to stay alert and analyze the performance of keywords — even those that previously received a down signal.

This approach is essential for keywords, devices, locations, and other key dimensions. You need to remain proactive or you may miss out on big opportunities.

Wrap Up

Machine learning is an integral component of Google Ads now, and it will continue to dominant in years to come. PPC managers must learn to embrace it, and use the tools however they can.

With top signals, you can create a bid strategy in Google Ads that is optimized for the best possible results. That being said, top signals are not a license to kick your feet up — you must keep your eye on things to make sure campaigns are primed for high-performance.

You can learn more about that in our Ultimate Guide to Campaign Optimization: 5 Core Areas and 20+ Tricks.

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