AdWords Automated Rules | The Good, the Bad and the Ugly

Adwords Automated Rules was launched to all advertisers in February. This new feature lets you set rules which will automatically make changes to your campaigns/adgroups/keywords based on set criteria.

The video below demonstrates this new feature:
http://www.youtube.com/watch?v=KBkBNySrnc0

This blog highlights some of the scenarios where this feature will bring great control (the good). I will also highlight some factors that should be considered carefully before using this feature (the bad).  Finally I will highlight a serious concern which should certainly be considered before implementing this feature (the ugly).

The Good

Automated rules are great for timed promotions and events. You can set rules so that promotional adverts are activated and paused on a timer. Previously this was a manual effort. You are also able to adjust bids and budgets based on performance which is great for target CPA (cost per action). If your CPA is currently below your target, you can increase your bids and budget, which in turn should help capitalise on the high converting traffic and therefore generate more sales. Similarly if CPA for a certain day is too high, then rules can be used to limit you budget and reduce your bids thus allowing you to save your precious budget for a new day.

The Bad

Before adding a new rule, I highly recommend that you double check the settings. Have all the scenarios been considered?  Once a rule has been applied make sure you don’t leave your campaign unattended. You will need to monitor performance carefully to ensure the rules are having the intended impact on your account.

For every new rule, you need to consider a counter rule.  For example, a rule which will automatically increase your budget by 50% if CPA is less than £X may result in a large overspend. This will happen unless daily budgets are reset each day to the original required daily budget.

If this rule runs each day, an original daily budget of £100 would result in a new daily budget of £1,139 by the end of the week (£100, £150, £225, £337.50, £506, £759, £1139). Your CPA will be in line with your targets, however your marketing budget may not be able to accommodate such as large increase in spending.

The Ugly

Rules can fail!

The screen shot highlights that automated rules are NOT 100% reliable. Therefore you need to consider the consequences of a failed rule and always monitor your campaigns performance closely. If you have used automated rules, please write a comment and share your experience.

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At 09:03

Ani

Nice information for all those who haven’t yet used or tested the Ad words Automated Rules.

At 13:47

marjorie

Regarding the failure of automated rule, do you mean there are times it runs smoothly and times that it fails? Or there are certain rules that don’t run from the very START? If it the first one, then it is awful! Thinking that my campaign is already paused but in reality it’s running and ballooning the daily budget could be the worse to happen!

At 11:39

Andrew Harris

Hi Marjorie. There are times when it runs smoothly and times when they can fail. We are in communication with Google who are investigating any issues. I highly recommend that you monitor you campaign and rules closely if your account is highly dependant on automated rules for management.

At 16:48

Marjorie

Thank you, Andrew for this. To be safe what I just did is automate the bid based on average position, and of course placed the max I can afford to pay. And yes, I really need to monitor this as I am afraid if the max bid won’t work, then it will surely deplete my budget. I am sure you will keep us posted with all development through this blog. Great help! Thanks again!

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