Why international reach makes it easier to adopt smart bidding
Some call it smart bidding, others refer to it as automated bidding or RTB (real-time bidding). Either way, it’s safe to say that this technology is here to stay. Brands need it both to remain competitive in the marketplace and to ensure optimal return on ad spend. But international businesses have a key advantage – read on to find out why.
What is smart bidding?
Let’s remind ourselves of what this technology does. Generally, smart bidding uses machine learning to bid more accurately at the time of auction. Historically, bids were mainly set at keyword level or ad set level for social. Now, smart bidding makes that decision for every single auction and processes millions of data points to make the most profitable bid possible.
The machines need two things to do a good job: decent conversion volume and data continuity. If you’re not getting enough volume or need to pause and re-activate activity frequently, you will generate better results using more manual controls and rule-based automations instead.
So how does being international help?
In essence: being present in multiple markets means more reach, and more reach means more opportunity for volume. But not just any volume – volume within the same channel, as per the machine’s needs. To leverage smart bidding on Google Ads’ search network, you’ll need high conversion volume for each campaign on that channel. This can be a real challenge when you are only targeting one market and need to focus on high-intent keyword portfolios. However, with an international strategy, instead of only accessing conversion volumes in one market, brand can multiply a channel’s potential which in turn will deliver quicker results with smart bidding.
Imagine a simple graph where the Y axis represents investment up and down the funnel and the X axis represents the scale of investment across your target markets. Being international allows you to grow volumes horizontally and maintain higher reportable ROI. Without that international reach, increasing volumes will inevitably mean going up the funnel which mostly equates to lower reportable ROI.
International expansion is naturally well suited to automated bidding solutions as they need large data sets within their target. With the right approach to market grouping and prioritisation, you can significantly accelerate growth.
. . .
If you would like to find out how Oban’s award-winning paid media team can help to accelerate your brand’s international growth, please get in touch today.
Oban International is the digital marketing agency specialising in international expansion. Our LIME (Local In-Market Expert) Network provides up to date cultural input and insights from over 80 markets around the world, helping clients realise the best marketing opportunities and avoid the costliest mistakes.