Google Ads Bidding Strategies that will take your campaign to the next step
The landscape of digital marketing has changed dramatically as well. Google Ads is one of the platforms that has played an essential role in developing digital advertisements.
Google Ads is one of the most essential and robust online advertising platforms since it can ensure that potential customers get rapid, secure traffic and leads. One of the most important elements to get good leads and traffic is using the appropriate campaign bid strategy. Web Training Academy provides in-depth bidding strategies training within the Google Ads Course.
This article will help you’ll discover more about bid strategies.
What is Ad Auction and Bidding Process
Ad Auction
Google employs its Ad Auction process to determine the ads that will be displayed in different places on Search results and what is the CPC of each advertiser.
Google Ads offers an ad auction that is lightning fast each time a user browses via Google or goes to a site that displays ads to determine the ads that should be displayed.
How does Google find what the Ad Position is
Google employs its AdRank factor to determine the placement of the advertisement. AdRank is calculated by utilizing the keyword’s MAX CPC and Quality Score (QS). The advertiser with the most AdRank will receive the 1st spot, and the 2nd AdRank will be awarded 2nd place, and it goes on.
Based on the location of the Ad and the bidding strategy used by advertisers, Google decides the cost per click for the specific click.
The bid strategy will play an important function throughout the procedure since it will determine the amount you’re willing to pay during the auction.
Types of Google Ads Bidding Strategies
Google Ads Manual Bidding
This bidding technique allows you to establish your maximum cost-per-click (CPC) for your keyword. If you opt for the manual CPC bids, you can determine the amount you’re willing to spend per click on your advertisements.
Google Ads Automated Bidding Strategy
Automated bidding eliminates the requirement to use human effort and ad hoc calculations to create bids that meet your objectives for performance. Google Ads determines the price of your ads by assessing the likelihood that your advert will generate an increase in clicks or conversions which can assist you in reaching a certain goal for your business, like the increase in conversions or clicks.
Types in Google Ads bid strategies
Manual CPC
Manual CPC Bidding is a technique that allows you to manage the CPC for every keyword. You can set a distinct CPC for each keyword.
This is a great bid strategy for those who need to significantly reduce their ad cost but don’t want to lose market share in the nick of time.
This method is recommended for campaigns with a small budget and targeted keywords.
Enhanced CPC (ECPC)
If you select the option of Enhanced CPC (eCPC), Google will raise or lower your bids in real time based on the likelihood of conversion.
In other words, when Google believes that a conversion is likely, the company will increase the max CPC bid by as much as 10 percent. In addition, if the likelihood of conversion is not high, Google can decrease the Bid cost by 10 percent.
This is a good option for campaigns with a low budget. You do not want to limit visitors to bid limits.
Maximize Clicks
It is the Maximize Clicks strategy. It is utilized to increase the number of people visiting your website while staying within your budget daily. Google automatically determines bids to help you increase clicks while staying under your financial budget. This strategy is available in two variations: a standard strategy suitable for one campaign and an approach to portfolio bids.
There is also the possibility of setting a Maximum CPC Limit that limits the bid. This allows you to limit the bid price without setting the bid price manually.
This approach is highly recommended for all advertisers looking to get high-quality traffic.
Maximize Conversions
Maximize Conversions makes bids based on past campaign results and auction information from rival retailers to get the highest conversion with the least amount of dollars. Since its “Maximize Conversions” goal is to maximize the number of conversions, Google might decide to invest its entire daily budget to achieve the most conversions possible.
This method is suggested to advertisers with the primary objective of leads or conversions.
Target CPA (Cost per Acquisition)
CPA stands for conversion per acquisition. (CPA) can be described as a smart bidding technique that sets bids to obtain the most converts (customer action) possible. Creating a bid strategy with the Target CPA (target cost-per-action) option allows you to select an average price for every conversion.
Suppose a user conducts a Google search to find the product you offer. In that case, Google Ads utilizes your Target CPA to determine the most effective bid based on the probability of the auction’s successful conversion.
When you use Target CPA bidding, few conversions could cost more, and certain conversions may cost less than your Target CPA, but overall, Google can keep you with your Target CPA.
This method is recommended to advertisers looking to increase conversions at a specific cost.
Maximize Conversion Value Bidding
In conjunction with Google Marketing Live 2019, the company unveiled a new bidding strategy called Maximize Conversion Value. This lets merchants optimize ads according to parameters such as margins of profit or sales. Google creates bids based on these criteria to maximize the potential ROI.
This is a good strategy for websites that sell products online or with a payment gateway integrated into their site.
Target ROAS (Return On Ad Spend)
Your ideal ROI (ROI) refers to the value at which you convert (for instance, revenue) per dollar you spend on advertising. Be aware you must consider that your ROI (ROI) the goal you set could affect the amount of conversions that you will receive. If you choose to set a too ambitious goal such as this one, it could cause fewer visitors to your advertisements.
This value can be set in percentages, and Google will make bids to reach the target ROAS.
This is a good strategy for websites that sell products online or transactional websites that integrate the payment gateway into their site.