The "Auto bidding" search engine service isn't even born yet.

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To tell you the truth, the expansion of search engine marketing (SEM) service providers is not because they have great advertising ideas or innovations in technology, but because you believe their exaggerated claims.

Although no SEM service provider is willing to admit this, this cold fact is still true, even for SEM services that have original or patented technology. And for those top SEM service providers, the situation is still the same, they have half the time to use automatic bidding tools, and the other half of the time by manual verification "tool execution is correct", this is the case when they seriously treat customers.

So what are the drawbacks of automatic bidding tools?

Most automated bidding tools can only handle a certain amount of data (regardless of how the SEM service boasts its own products), such as: your keyword performance in 7 days or 30 days. Service providers typically record your CPA (cost-per-acquisition) for a period of time (such as 30 days), and then evaluate how to improve your ranking over the last 7 days and how to operate (Close or suspend) your keyword launch.

But just consider a situation. ────10 million keywords x5 type of matching types x3 ad x several channels of delivery (Google, Yahoo, MSN ...), the service providers can do nothing, because this requires a lot of data based. You may want to investigate the SEM service team to see if they have the ability. The results of my research ... Well, I don't think an MBA that doesn't know anything about machine learning (Machine learing) can handle all this. In my opinion, this requires a full understanding of how Google's advertising system works rather than how SEM services work, and he has to go to Stanford's Ph. D. degree.

If the SEM service provider wants to make a large data tool system, then they need to develop a complex system, which will be full of various indicators, the system needs 45 days of data and up to 1 years of data. But this approach is inherently flawed because many ad accounts have less than 6 months to support the 1-year data standard, and there are a number of cost-per-clicks and CPA (Cost-per-acquisiton) in advertising accounts that are completely irregular.

Other SEM service providers are to observe the effect by increasing or decreasing the price of the key words. But this method may be in your keyword price is about 1 yuan per click, and when your keyword price is 10 dollars per click, this method will bring drastic consequences, eventually you will find, You have to raise the price and reduce a few dollars to see the change.

Another example is if your online store sells multiple products, it has multiple advertising campaigns and a ton of keywords. You usually use Cross-subsidization to balance the difference between the profits of different products, but automatic bidding tools usually do not do this because the goals set in the tools are often the same.

So, whether you hear the SEM service providers say how amazing their tools are, I just want to say: "Thanks, thank you!"

Editor's note: How to evaluate the effect of SEM has always been a big controversy, this is a common situation. But there is a common truth: a controversial market, and a market with huge opportunities.

The original author: Nick Abramovic

This article starts in the search engine marketing observation, reprint please register the origin.