AI Max in Google Ads: Victory or Defeat?
A new study by the SMEC analytics company sheds light on the results of using the automated bidding strategy AI Max in Google Ads Search campaigns. According to the experts, the use of AI Max leads to a 13% increase in conversion value, but also causes an increase in cost-per-conversion and unpredictable return on ad spend (ROAS).
Analyzing the results of testing AI Max on a sample of their clients, SMEC specialists came to the conclusion that this auto-strategy does not always justify the expectations of advertisers. Although it is capable of increasing the overall conversion value, this growth is often offset by a higher cost of attracting customers. In addition, ROAS when using AI Max turned out to be quite unpredictable, which can create difficulties with budgeting and planning advertising campaigns.
Particularly interesting is the fact that the effectiveness of AI Max strongly depends on the vertical and product category. For example, in some industries (finance, e-commerce) the growth in conversion value reached 20%, while in other segments the dynamics were much less impressive.
Thus, the SMEC conclusions indicate that the use of AI Max requires careful analysis and testing on specific campaigns. The automated bidding strategy can bring tangible benefits, but for this it is necessary to take into account the specifics of the business and constantly monitor key performance metrics. Only in this case will advertisers be able to maximize the benefits of AI Max and avoid unwanted financial consequences.