Ultimate Guide to Google Ads Bidding Strategies

Google Ads is online advertising platform for businesses or individuals who wants to showcase their ads on Google search engine and its partner websites. The sponsored or paid result are visible at the right side of the search engine and some time above the organic search results on the top of SERP. Before moving to the bidding strategies let us first understand the working process of Google ads.

Process of Google Ads Functioning

  1. Choose the Campaign Type and Name:

    Select the right category of ad campaign as per your purpose. Now, give name to your campaign that suits your business well.

  2. Choose the Location where you want to show ads:

    Select the geographic area you are targeting. How big or short area in your strategy. You can select entire world, specific country, states, province, city or any other targeted location from pin code or zip code.

  3. Define the “Bid Strategy” and Daily Budget:

    You can modify the current bid strategy or can “set your own bids for clicks”. There are many automatic choices can be changed later, if required. The daily budget is set as per your need to reach the maximum number of people per day. There are various payment options are offered by Google.

  4. Create the Ad Group and Compose the Ad:

    A large number of people click on ads when their search term is found in the ad heading. This is why it is a very good idea to use keyword in your ad heading. Writing ad title limit is 25 characters, so sometime you have to use shorter synonyms. 2nd and 3rd lines limit is 35 characters each. Understand the limit as follows…

Headline: Max limit 25 Characters

2nd Line: Max limit 35 Characters

3rd Line: Max limit 35 Characters

4th Line: Display URL

  1. Place the Keywords into keyword section of account:

    Start with single keyword and include addition signs(+), Quotes(“”), and Brackets([]) to briefly look how many searches you will receive. It is not a good idea to include huge number of keywords. Go with most necessary keywords and proceed.

  2. Allocate maximum cost for each click:

    Set the maximum PPC (known as “default bid”), but better understand that because, each keyword is separate market. Each of keyword need bid price and Google will later allows you to set individual bid for each keyword. If you can spend $5 per day than, $50 is good to bid on low-cost keywords. Your ad is view able by larger community.

  1. Revise Everything:

    Keep review your keywords and ad copies to make sure everything is working fine. Check your CPC to ensure your position on the page you dream for. Have a look of your daily budget to be sure about your advertising purpose.

  2. Add the Billing Details:

    After payment confirmation successfully, your ad will be live.

Determine a bid strategy based on your goals

Google Ads offering various bid strategies that are developed to different types of Ad campaigns. Depending on which ad networks your campaign is targeting, and what result you want to focus on getting clicks, conversions, impressions, views you can determine which strategy is best working for you.

Consider Your Goal

Each strategy is build for different campaigns and advertising goals. For bidding, 4 basic type of goals may be…

  • – If you want customer to take direct action on your website, you are using conversion tracking, then it could be best focus on conversions. Smart bidding allows you to do that.
  • – If you are looking traffic for your website, focus on click is best for you. CPC bidding is right for your campaign.
  • – If you are looking for brand awareness- not generate traffic to your website- focus on impressions could be your strategy. You can use vCPM to put your message in front of customers. Target search page location can be also used to maximize visibility.
  • – If you run video ads, you can use cost per view (CPV) or cost per thousand (CPM) bidding strategy to increase views or interactions with your ads.

Bid Strategies in Google Ads

  1. Manual Cost Per Click (CPC):

This bid strategy allows you to bid at keyword or ad group level. It is perfect strategy to bidding for brand new marketers who are looking for no over expense and everything is under control.

  1. Automatic CPC:

Google control to fix up your bids (up and down) and gives you more click in your daily budget for a particular campaign. It is good for those businesses who wants to decrease their budget but don’t want to lose their impression share too quickly. This strategy does not give a choice to fix max CPC bids at the single keywords levels. If you are using automated bidding you are not having that level of control.

  1. Enhanced CPC:

This bid strategy offers Google the independence to increase and decrease bid to around 30%. Google enhance your CPC bid up to 30%, if a conversion is like to occur. According to the Google, “ECPC can help you get more conversions while maintaining or reducing your cost per conversion.” If you want to use this strategy, try it on low profile campaign first then track the rate of conversion, cost per conversion, and conversion volume.

  1. CPA (Conversion Optimizer) Bidding:

This type of bidding enable google to average a specific cost per conversion target that is set. CPA bidding requires at least 15 conversions over a time run on 30 days to be active. This bidding strategy performance also depends on the History of your Google Ads account and the volumes of conversion. Most of time CPA is efficient on Display Network Ads and Search Network Ads where keyword intent may be too mainstream and could lead to a conversion.

  1. CPM (Cost Per Thousand Impressions) Bidding:

Currently, it is only available for Display Network Campaigns (like remarketing). This strategy permit to target bids that add after 1K impressions. Google once enable max CMP bidding, but later changed  as vCPM. However, it will charge for impression and no matter if your ad is being displayed on lowest position where your targeted users never see this.

Flexible Bid Strategies:

Flexible Bidding strategies Google Ads

Flexible bidding strategies are available within your Google Ads account. You will find these 6 strategies as follows.

Enhanced CPC: We have already discussed in this article earlier with a choice to up and down the bids by 30%.

Target Page Location: If your Google ad is giving desired result above organic results or even the sidebar, then this strategy is worth testing.

Target CPA: Target Cost Per Acquisition allows you to create as much or few campaigns you need to share the same CPA targets.

Maximize Clicks: This is similar to automated bidding, but you need to be careful because in reality it sometimes take you to bad quality clicks which may lead to poor quality of conversions.

Target Return on Ad Spend: ROAS bidding is a ratio that is set so the conversion values & analytics income values can be track easily. Track the total PPC expenses and revenue generated from that.

Target is OutRank Share: In case if you are you dependent on all of your targets on how much you can outrank a specific competitor? Then this very strategy is made for you so stop looking here and there.

Google Ads Bid Strategies – Which one I Choose?

Focus on conversions with Smart Bidding

Target CPA: If you want conversions from your ad then use Target CPA, this will help to increase conversions.

Target ROAS: If you want to optimize for conversion value, use target ROAS to increase the conversion value.

Maximize Conversions: If you want to spend entire budget instead of aiming a specific CPA, use maximize conversions.

ECPC: To maximize your conversions you can use ECPC. This will increase your budget up to 30% to maximize conversions.

Focus on Click with CPC Bidding

There are two CPC bidding strategies to consider.

Maximize Clicks: Automated bid strategy. Simplest way to bid for clicks. Just set daily budget, Google ads system automatically control your bid for most possible clicks in your budget.

Manual CPC: Control you max CPC bid yourself. You can set different bid for each ad group or keyword in your campaign. If any specific keyword is getting more clicks then you may increase budget for that particular keyword or ad group.

Focus on Impression

To maximize the visibility you can use the following bid strategies.

– target search page location: This automated bid strategy help to increase the chances of your ads to be appear on the top of the page or on the first page of search results.

– Target Outrank Share: This automated bid strategy allows you to choose a domain you want to outrank. So your ad is displayed above that domain’s advertisement. Google ads sets the bid automatically for your search bids to meet the target.

– CPM: You will pay according to the number of impressions you receive on your display ad network or YouTube.

– vCPM: Your ads are designed to spread awareness, not for traffic or clicks. It allows you to set amount for per 1000 view-able impressions on Google Display network.

Focus on Views or interaction (Only Video Ads)

For video ads use CPV bidding. You will pay for views and other video interactions (Click on the CTAs). Enter the highest price you want to pay for a view while setting up TrueView video campaign.

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