7 Things We Learned From Ginny Marvin Ahead of Google’s August Bidding Update

Last month, Google Ads announced that new Smart Bidding changes will be rolling out on August 17. These shifts will impact overperforming campaigns limited by budget that use a target by having them perform more closely toward their set target. 

This upcoming change has created a stir in the marketing world and left many with questions. To answer some of those questions, Greg sat down for a conversation with Google’s Ads Product Liaison Ginny Marvin to clarify what this update impacts and what marketers should know ahead of time. 

What's Changing and Why

Ginny explained that this update is only impacting campaigns using a target that’s limited by budget and is overachieving. Once the update rolls out, campaigns limited by budget will work the same as those that are not.

By aligning performance with a campaign's set target, Ginny said Google hopes to standardize bidding behavior and encourage advertisers to set targets “that actually mean something for their business.”

How the System Worked in the Past

Previously, campaigns limited by budget would often overperform due to budget discrepancies. When advertisers and marketers adjusted their budgets in campaigns that were limited by budget, they would often face unpredictable performance volatility, leaving people frustrated and unsure of what they should do with their budgets.

With this update,  Ginny explained that the target will be “the only lever for efficiency” when campaigns are limited by budget. 

Will This Update Impact Underperforming Campaigns?

Campaigns failing to meet their target will not be impacted, positively or negatively, by these upcoming changes. Ginny explained that the system will still be working to achieve your targets.

She reiterated that this update is really only impacting overachieving campaigns that are limited by budget and use targets. 

What Is, If Anything, Changing To Campaigns Not Limited By Budget?

This update is exclusively impacting campaigns that are limited by budget.  Campaigns that aren’t will continue operating as usual.

Are Maximize Conversions and Maximize Conversion Value Still Good Options?

Maximize Conversion/ Maximize Conversion Value is primarily designed for campaigns where there is a fixed budget. It was recommended that people who have campaigns limited by budget not move to these bidding strategies. 

Ginny clarified that for any campaign using a target, not using this strategy provides the system with the leeway it needs to find the most conversions (or the most conversion value) for a set target. She said that if you want to keep achieving the targets that you’re presently seeing, you can adjust your targets to your actuals. 

What About People With A Capped Budget?

People with fixed budgets or with no upcoming plans to increase their budget can still use Maximize Conversions/ Maximize Conversion Value with a sound mind.

Ginny emphasized that the purpose of targets is to give the system signals about what value you’re hoping to get from conversions and the maximum you’re willing to spend.

She wants this update to restart conversations about “how bidding works, how to think about targets, what the business goals of your targets actually are, and again making sure that the purpose of that target is to align with business goals.”

How Will This Update Impact Ad Groups?

For ad group targets that are more specific, that factor still supersedes a campaign target. Ginny does recommend that when people are setting ad group targets to be cognizant and sure that they’re needed, as it can impact Smart Bidding by adding constraints.

She emphasizes that when you’re analyzing campaign performance, to look at average target performance. These averages take ad group settings, bid adjustments, value rules, and target changes into account.

Non-Limited-by-Budget Campaigns and Historical CPAs

Greg asked Ginny a few follow-up questions, including one from Anthony Bellanca about whether advertisers should be moving campaign targets for their non-limited-by-budget campaigns to a proven historical or previous CPA.

In a context where your campaigns are achieving their targets, Ginny says to keep it as long as you’re meeting the goals you have. She clarified that, inherently, no non-limited-by-budget campaigns should be impacted.

What to Keep in Mind Before August 17

With this update, Google is looking to have its systems focus on your target, so that when you start scaling, there’ll be fewer adjustments that you’ll have to make. Transitions should be more stable and predictable.

Ginny recommended that when thinking ahead about this update, if you’re presently making changes, you’ll still need to account for some recalibration time. For performance evaluation, she suggests giving your conversions a cycle or two before checking their bid strategy report.

If you want to learn more from Ginny about this update or for more Google Ads clarification, you can hear more on her Ads Decoded podcast.

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