Google Ads is a powerful advertising platform that allows businesses to reach their target audience through targeted ads. One of the key components of a successful Google Ads campaign is the bidding strategy. In this post, we’ll provide an introduction to Google Ads bidding strategies, explain why they matter, and how to choose the right bidding strategy for your campaign.
Before continuing, you’ll need to understand the concept of conversions and conversion tracking, as many of the bid strategies depend on this data.
A conversion is an action that you want users to take on your website or landing page after clicking on your Google Ad. Examples of conversions include:
- making a purchase
- filling out a form
- signing up for a newsletter
- or requesting a quote
Conversion tracking is a powerful tool that allows you to track these actions and measure the success of your Google Ads campaigns. By tracking conversions, you can see which ads and keywords are driving the most valuable actions on your website, and use that information to optimise your bids and improve your campaign performance.
Available Google Ads Bidding Strategies
Google Ads offers a range of bidding strategies that businesses can use to optimise their campaigns. Here are some of the most common bidding strategies:
Manual CPC Bidding
With manual CPC bidding, advertisers set the maximum amount they’re willing to pay for each click on their ads. This gives businesses more control over their bids, but it requires more time and effort to manage.
Enhanced CPC Bidding
Enhanced CPC bidding is similar to manual CPC bidding, but Google Ads automatically adjusts bids based on the likelihood of a conversion. This bidding strategy can help improve campaign performance while still allowing businesses to maintain some control over their bids.
Target CPA Bidding
Target CPA bidding allows businesses to set a target cost-per-acquisition (CPA) and Google Ads automatically adjusts bids to meet that goal. This bidding strategy is ideal for businesses that have a specific CPA goal in mind.
Target ROAS Bidding
Target ROAS bidding allows businesses to set a target return on ad spend (ROAS) and Google Ads automatically adjusts bids to meet that goal. This bidding strategy is ideal for businesses that want to maximise their return on investment (ROI).
Maximise Conversion Value Bidding
Maximise Conversion Value bidding aims to get the most conversion value (revenue) for your budget. This strategy automatically adjusts your bids to get the most valuable conversions within your daily budget. Maximise Conversion Value is an ideal strategy for businesses that want to maximise their return on investment (ROI) and are focused on generating revenue.
Target Impression Share Bidding
Target Impression Share is a bidding strategy in Google Ads that aims to show your ad in a certain percentage of eligible ad auctions. This strategy automatically adjusts your bids to help you achieve your desired impression share. Target Impression Share is a good option for businesses that want to increase their ad visibility and are focused on building brand awareness.
Maximise Conversions Bidding
maximise Conversions bidding is a smart bidding strategy that uses machine learning to optimise bids for conversions. This strategy is ideal for businesses that want to maximise the number of conversions they receive.
Maximise Clicks Bidding
maximise Clicks bidding is a smart bidding strategy that uses machine learning to optimise bids for clicks. This strategy is ideal for businesses that want to drive more traffic to their website.
Popular Google Ads Videos
How Long Does Bid Strategy Learning Take?
Bidding strategy learning time can vary depending on the size of your account and the amount of historical data available. Generally speaking, machine learning bidding strategies, such as Target ROAS and Maximise Conversions, require a longer learning period because they rely on historical data to make predictions about future performance.
Google Ads recommends allowing at least two weeks for a machine learning bidding strategy to learn and optimise. However, it’s important to continue monitoring your campaign’s performance and making adjustments as needed to ensure that you’re achieving your desired results.
The Pros And Cons Of Automated Bidding Strategies
Automated bidding strategies, such as Target ROAS and Maximise Conversions, offer many benefits, including time savings and the ability to optimise bids in real-time. However, there are also some potential drawbacks to consider.
One downside of automated bidding strategies is that they require a significant amount of historical data to be effective. This means that new campaigns or accounts may not have enough data to use machine learning bidding strategies right away.
Automated bidding strategies can also be less transparent than manual bidding strategies, making it harder to understand how bids are being optimised and making it difficult to troubleshoot issues.
Bidding Strategies For A New Google Ads Account
If you’re just getting started with Google Ads and don’t have much historical data to work with, it’s best to start with a manual bidding strategy, such as Manual CPC or Enhanced CPC. These bidding strategies offer more control over your bids and allow you to gather data to inform future bidding decisions.
Once your account has accumulated enough conversion data, you can consider switching to a machine learning bidding strategy, such as Target ROAS or Maximise Conversions.
Bidding Strategies For A New Campaign
If you’re launching a new campaign within an existing account, it’s best to use the bidding strategy that aligns with your campaign goals. For example, if your goal is to maximise conversions, consider using a bidding strategy such as Target CPA or Maximise Conversions.
It’s also important to monitor your campaign’s performance and adjust your bids as needed to ensure that you’re achieving your desired results.
Bidding Strategies For Google Shopping
Google Shopping campaigns are designed to showcase your products to potential customers. When it comes to bidding strategies for Google Shopping, you have several options, including Manual CPC, Enhanced CPC, and Performance Max.
Performance Max is a machine learning bidding strategy that uses conversion and product data to optimise bids across Google Search, Google Display Network, and YouTube. It’s a good option for businesses looking to maximise their return on ad spend (ROAS) and simplify campaign management.
Bidding Strategies for Display Ads
Display ads are a great way to reach potential customers across the web. When it comes to bidding strategies for Display ads, consider using a strategy such as Target CPA or Target ROAS to optimise bids for conversions.
It’s also important to consider factors such as ad placement and targeting options to ensure that your Display ads are reaching the right audience.
Bidding Strategies for YouTube Ads Campaigns
YouTube is the world’s second-largest search engine and offers businesses the opportunity to reach potential customers through video ads. When it comes to bidding strategies for YouTube ads, consider using a strategy such as Target CPV (Cost Per View) or Target CPA to optimise bids for your desired conversion or action.
It’s important to ensure that your video ads are engaging and relevant to your target audience to maximise their effectiveness. Consider factors such as video length, ad placement, and targeting options to make the most of your YouTube ad campaign.
Learn more: Every YouTube Ads Bidding Strategy Explained
Why Bidding Strategies Matter in Google Ads
Bidding strategies matter in Google Ads because they can have a significant impact on campaign performance. The right bidding strategy can help businesses achieve their goals, whether that’s to maximise conversions, drive more traffic to their website, or increase their ROI.
How to Choose the Right Bidding Strategy for Your Campaign
Choosing the right bidding strategy for your campaign depends on your business goals and the performance of your existing campaigns. Before selecting a bidding strategy, consider the following:
- Your campaign goals
- Your budget
- The performance of your existing campaigns
- The competitiveness of your target keywords
Once you’ve considered these factors, you can choose a bidding strategy that aligns with your goals and helps you achieve the best results.