What are the key differences between manual and automated SEM campaign segmentation?

1 Manual segmentation

Manual segmentation is when you create and manage your own segments based on your criteria, such as keywords, locations, devices, audiences, or landing pages. You can use tools like Google Ads Editor or Microsoft Advertising Editor to make bulk changes and apply bid adjustments. The main advantages of manual segmentation are that you have full control over your campaign structure, you can customize your segments according to your needs, and you can test different strategies and learn from the results. However, manual segmentation also has some drawbacks, such as being time-consuming, prone to human errors, and limited by your expertise and data analysis skills.

2 Automated segmentation

Automated segmentation is when you use a software or platform that automatically creates and manages your segments based on algorithms, machine learning, or artificial intelligence. You can use tools like Google Ads Smart Bidding or Microsoft Advertising Automated Bidding to optimize your bids based on your target metrics, such as conversions, revenue, or return on ad spend. The main benefits of automated segmentation are that you can save time and resources, avoid mistakes, and leverage advanced technology and data insights. However, automated segmentation also has some challenges, such as being less transparent, requiring trust and experimentation, and depending on the quality and quantity of your data and signals.

3 Choosing the best option

There is no definitive answer to whether manual or automated segmentation is better for your SEM campaigns. It depends on several factors, such as your campaign objectives, budget, scale, complexity, and performance. You may also use a hybrid approach, where you combine manual and automated segmentation for different aspects of your campaigns. For example, you may manually segment your campaigns by keyword themes or locations, and then use automated bidding to optimize your bids for each segment. Or you may use automated segmentation to create and manage your campaigns, and then manually review and adjust them periodically.

4 Best practices for manual segmentation

If you decide to use manual segmentation for your SEM campaigns, there are a few best practices to remember. It is important to use a clear and consistent naming convention for your segments, as this will make it easier to identify and track them. Additionally, ensure your segments are relevant and granular enough to match your target audience's intent, behavior, and preferences. Monitor your segments regularly and analyze their performance using key metrics such as impressions, clicks, conversions, cost, and return on ad spend. Test different bid adjustments and strategies for your segments and compare the results using statistical methods or tools. Finally, keep your segments updated and optimized based on your campaign goals and market changes.