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Hagakure method in Google Ads: how to make the most of the potential of smart bidding

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Hagakure method in Google Ads: how to make the most of the potential of smart bidding

The Hagakure method is a new way of structuring and optimizing campaigns in Google Ads in order to maximize results thanks to the action of machine learning algorithms . The Hagakure system relies on the use of automated tools  canada phone directory such as smart bidding strategies and Dynamic Search Ads (DSA) .The origin of the term Hagakure is in the Japanese tradition. It is the title of the work that the samurai Yamamoto Tsunetomo wrote in the 18th century. In it, he explained to his apprentices the bushido or “way of the warrior”, the code of honor by which the samurai had to abide by.Translating this concept on the way to the digital world, Google proposes a new path for the management of Google Ads. Applying Hagakure means leaving atomisation and semantics behind and instead going for structural simplification to take advantage of the full potential of machine learningThe Hagakure method, a change of strategy (and mentality) in search
The Hagakure method proposes to simplify the account structure in order to maximize the amount of data at the campaign level . In this way, each campaign consists of large ad groups capable of collecting enough data to feed the Google Ads machine learning algorithm.Specifically, the minimum figure indicated by Google is 3,000 weekly impressions per ad group . To reach this volume and take advantage of the advantages of smart bidding , Google proposes three steps Prioritize types of agreement such as broad or broad modified that attract more volume as opposed to others that limit it (exact Use DSAs to capture searches that we are not hypothetically covering with the rest of the ads . You can run a DSA ad group for each product type or one for all productsAdvantages of the Hagakure method in Google AdsThe Hagakure system allows to achieve more efficient accounts, since:
It makes reporting and data interpretation easier by reducing account complexity.
Results are improved without the need to increase the budget , thus optimizing advertising investment and achieving greater profitability in the accounts.
Increase the productivity of the team in charge of the account by being able to focus their efforts on making strategic decisions based on key KPIs for the business.
The larger data record enables faster learning by Google’s automatic functionalities (RSA, DSA, audiences …).How to apply the Hagakure method in Google Ads
Several phases are distinguishe. Thoroughly study the current account structure
It is essential to understand why the account has been designed in this way and to study the variables that explain it, such as, for example, the profit margin of each product, how geographic locations affect the business or which star products it works with, among others.

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Let’s take an example. Before, the structure of an account of an e-commerce of electrical appliances would be divided into a myriad of campaigns such as “brand refrigerators”, “generic refrigerators”, “brand dishwashers”, “generic dishwashers”, “generic TV”, ” Brands TV ”… With Hagakure,  gulf email list  the restructuring of the account would be based on reducing the number of campaigns to operate with a broader search umbrella. If this e-commerce has defined different profit margins for household appliances, on the one hand, and for televisions, on the other, that will be the criterion to use to reduce the number of campaigns and centralize them in this division. Then, within each one of them, it would be necessary to go to the historical data to detect which ad groups meet the premise of 3,000 weekly impressions . These can be maintained independently, while those that register lower volumes should be grouped together.The diagram shows an example of an ideal structure following the Hagakure method
The diagram shows an example of an ideal structure following the Hagakure method
2. Adapt the strategy of the new structure based on business objectives
Setting the objective of each smart bidding campaign determines how the machine learning algorithm is going to learn, the decisions it is going to make . The Hagakure method generally achieves very good results in campaigns with performance objectives . To opt for one type or another, you have to take into account the main strategies that can be implemented with smart bidding :

Campaigns to CPA : the algorithm sticks to the set target CPA and seeks to achieve the maximum number of conversions without exceeding it.
Campaigns with ROAS objective : seeks to convert while respecting the objective ROAS, that is, the average conversion value that is expected to be obtained for each euro invested in ads. Without a doubt, this is one of the strategies that every account should be directed towards, since it allows aligning the business objectives (ROI) with those of the advertising campaigns in Ads (ROAS).
Campaigns aimed at maximizing conversions : they try to achieve the highest number of conversions with a certain budget. Campaigns to maximize conversion value: the algorithm obtains the highest value for each conversion within the allocated budget. In order to use this strategy, it is necessary to be recording the conversion value through the corresponding Google Ads measurement pixel.It is important to carefully plan this stage and define the objectives well. Once the smart bidding campaign gets underway, it takes about two weeks for the system to learn and stabilize, so you’ll likely see uneven performance during that time. During this period, which can sometimes be less than 15 days, you have to be patient and let the algorithm operate: the optimization will come laterAfter the learning and testing phase, it is necessary to assess if the objectives have been achieved, if they were realistic and put them in the context of the business, taking into account factors linked to it such as seasonality or your own promotion calendar.With Hagakure, optimization is a subtle task : you have to give the algorithm time to interpret the changes that are made to the account and integrate them into its operation. For this reason, Google recommends making gradual adjustments that are in the margin of 15% per week. We are talking about, for example, avoiding going from a target ROAS of 4 to a target ROAS of 8 all at once and the same goes for budget moves.PILAR MARTÍNEZ , SENIOR DIGITAL MARKETING CONSULTANT AT LABELIUM SPAIN
The Hagakure method and the power of machine learning
Over time, Google Ads accounts have grown in complexity by prioritizing the specificity and granularity of the structure. The Hagakure system is a return to simplicity, but to an intelligent simplicity supported by the most advanced machine learning technology .

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