Understanding Google Ads Learning Phase

Aug 1, 2024

Google Ads Learning Phase

Introduction

  • Discussion on the learning phase in Google Ads campaigns.
  • Importance for advertisers to understand what happens during this phase.

What is the Learning Phase?

  • Occurs when creating a new campaign or making significant changes.
  • Google tries to understand how to spend the budget effectively.
  • Applies primarily to campaigns not using manual CPC (Cost Per Click).

Manual CPC vs. Smart Bidding

  • Manual CPC: Advertiser sets bids directly; no learning phase involved.
  • Smart Bidding: Google learns how to optimize bids based on set strategies.
  • Migrating to Smart Bidding or making major edits can trigger a return to the learning phase.

Reasons for Entering the Learning Phase

  1. New Campaign Creation
    • New campaigns in smart bidding strategies automatically enter learning phase.
  2. Changes to Existing Campaigns
    • Significant edits (e.g., changes in CPA target) lead to re-learning.
  3. Budget Changes
    • Major increases/decreases in budget require Google to adapt.

Duration of the Learning Phase

  • Duration varies based on several factors:
    1. Conversion Volume
      • Campaigns with low conversion volume take longer to learn.
      • More conversions provide better data for Google to learn from.
    2. Latency Period (Conversion Cycle)
      • The time between ad click and conversion affects learning time.
      • Shorter cycles (e.g., e-commerce) allow faster learning compared to longer cycles (e.g., B2B).
    3. Bid Strategy Complexity
      • More complex bidding strategies require more time to learn.
      • Simple strategies (e.g., maximize clicks) typically learn faster.
    4. Historical Account Data
      • Campaigns with historical conversion data learn quicker.
      • New campaigns without history may take longer to exit learning.

After Exiting the Learning Phase

  • Successful exit leads to an eligibility status and effective budget spending.
  • If Google struggles to meet targets:
    • Limited by Bid: Campaign can't achieve the set CPA; may need to adjust targets.
    • Limited by Budget: Campaign meets targets but lacks budget; consider increasing budget.
    • Limited by Volume: Keywords/targeting may be too narrow; Google recommends increased spending.

Managing Low Volume Campaigns

  • Low volume isn’t inherently negative; profitability matters more.
  • Maintain focus on business goals rather than just Google’s suggestions.
  • Understand potential profitability in niche markets without expanding targeting unnecessarily.

Conclusion

  • Engagement with audience encouraged: share experiences in comments.
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