Most SEM professionals will agree that a solid SEM program strategy is multi-faceted. The program should focus not just on bidding, but also on Quality Score, data gathering and reporting, and aggressive testing of all aspects of the program. That being said, the great promise of bid automation remains a viable, debatable, and important topic.
There is no doubt that autobid algorithms are important to a well-rounded SEM bidding strategy but they can also be detrimental. Success with autobid depends on a number of factors. Obviously, one crucial factor is how well constructed the algorithm is. Perhaps more important, though, is the level of customizability made available by the algorithm. Does it treat core and long-tail terms similarly, or is it specialized for success with a particular kind of keyword? Is it customizable in terms of defining quantity of data analyzed, statistical relevancy, convergence speed, and data tolerance leading to a bid change? Can you influence bid security, day parting, data aggregation?
Algorithms can be a powerful part of your bid management arsenal, particularly when tweaked and managed intelligently. As all businesses have different needs, if the algorithms you are working with are not customizable, you run the risk of algorithms being unable to respond to your unique business conditions. Be sure to ask what your customizability options are so that you can take advantage of algorithms that fit your requirements!
Josh Krafchin
