Imagine yourself in an auction. The battle is fierce, while competition has taken center stage, and every bidder has a strategy that works to win the prized possession. Replace the auction with Google Ads.
Now imagine every click, conversion, or customer that Google serves is the prize that you’re trying to acquire. Let’s welcome you into the world of Google Ads bidding, where success is far from having the largest budget but using the smartest strategy.
In this simple guide we will dive into the 12 of the most powerful bidding strategies Google Ads offers. Used effectively, these strategies translate clicks into conversions, increase ROAS, and drive more sales.
How can you better arm yourself with these strategies like a seasoned bidder at a high-stakes auction?
Google Ads Bidding: What is it?
Essentially, Google Ads bidding is a way of determining how much you are willing to pay to get someone to interact with your ad.
While it’s not the case with its counterpart, an old-fashioned ad that depends on fixed prices, Google Ads uses a dynamic auctioning system where a number of factors-they include the bid you enter, ad relevance, and quality score, determine the visibility of your ad.
Why Does Bidding Strategy Matter?
It can make or break your campaign with a strategy you choose. Bidding too low could keep your ad out of sight.
On the other hand, the need to bid too high may cause unnecessary costs. What you need is a delicate balance that maximizes visibility without a lack of profitability.
It’s where the perfect strategy steps into the picture, not just placing a mere “bid” but placing the right “bid” at the right time.
From CPC Bids to Ad Extensions: Optimizing Your Google Ads for Better Results
- Max Cost-Per-Click Bid: At the core of the auction process is your maximum cost-per-click (CPC) bid for the chosen keyword. This bid represents the highest amount you are willing to pay for a click on your ad.
It serves as a financial threshold, indicating the monetary value you attribute to the targeted keyword. Your bid, in conjunction with the bids of other advertisers competing for the same keyword, sets the initial stage for the auction.
- Key Considerations:
- Your bid influences the competitiveness of your ad in the auction.
- A higher bid often positions your ad more favorably, but it’s not the sole determinant of success.
- Quality Score: Google places a strong emphasis on the quality and relevance of ads to ensure a positive user experience. The Quality Score is a metric assigned to each keyword based on the quality and performance of its corresponding ad.
It takes into account factors such as ad relevance, expected click-through rate (CTR), and landing page experience. A higher Quality Score can lead to better ad positions at lower costs.
- Key Considerations:
- Quality Score reflects the overall health and relevance of your ad.
- Improving ad content, relevance, and user experience positively impact your Quality Score.
- Ad Extensions and Their Relevance: Ad extensions enhance the visibility and informational depth of your ad by providing additional links, details, or contact information.
Google considers the relevance of your ad extensions to the ad and keyword in determining the overall value your ad brings to users. Relevant ad extensions contribute to a more comprehensive and engaging user experience.
- Key Considerations:
- Choose ad extensions that complement your ad’s content and provide meaningful information.
- Google rewards ads with relevant extensions by considering them more valuable to users.
Embarking on the journey of Google Ads bidding? The landscape can be overwhelming, but fear not!
We’ve uncovered 12 bidding strategies that bridge the gap between manual effort and automated efficiency.
12 Strategies for Google Ad Bidding
1. Target CPA Bidding: Precision in Conversion Goals
Set your sights on a specific Cost Per Acquisition (CPA) and let Google’s algorithm work its magic. Ideal for those aiming to meet targets and boost leads, this strategy automates bids to maximize conversions within your designated CPA.
Pros:
- Streamlines conversions at a set CPA goal.
- Utilizes conversion tracking data for cost-effective results.
Cons:
- Lacks individual campaign bid caps.
- Requires a substantial budget for optimal performance.
Pro Tip: Consider this strategy for improved conversions and reduced CPA, as seen with a 30% increase in conversions and a 12% decrease in CPA for AnswerForce
2. Target ROAS Bidding: Striking the ROI Gold
Seeking a specific Return on Ad Spend (ROAS)? This strategy optimizes bids to achieve the desired ROI, factoring in conversion values. Perfect for eCommerce platforms navigating the delicate balance between volume sellers and high-margin winners.
Pros:
- Tailored for eCommerce platforms.
- Target audiences ready for conversion.
Cons:
- Requires feeding Google necessary product revenue data.
- May reduce ad spend to meet ROAS goals.
3. Maximize Clicks Bidding: Effortless Traffic Generation
In “Maximize Clicks,” Google takes the reins, setting bids to garner as many clicks as possible within your budget. This is simple, effective, and ideal for those with strong conversion performance who want to increase volume.
Pros:
- Straightforward automated bidding.
- Lowers CPCs and boosts Search Impression Share (SIS).
Cons:
- May result in lower-quality clicks.
- Primarily focused on traffic, not conversions.
Pro Tip: Sticky Bunny experienced an 1166% increase in sales with a 270% conversion rate boost using this strategy.
4. Maximize Conversions Bidding: Unleashing Conversion Potential
For those prioritizing sales or leads, Maximize Conversions Bidding automates bids to secure the highest number of conversions within your budget. It is ideal for exhausting your daily budget with a concentrated conversion effort.
Pros:
- Drives higher conversion volume.
- Bids higher on audiences likely to convert.
Cons:
- Lacks bid limit control, risking costly clicks.
- May lead to a higher CPA or lower ROAS.
5. Maximize Conversion Value Bidding: The Value-Driven Approach
Automated bids in this strategy focus on obtaining the most conversion value within your budget. Google leverages extensive data to determine optimal CPC bids for each auction, emphasizing the highest dollar value revenue.
Pros:
- Drives the highest dollar value from ads.
- Target users are likely to make valuable purchases.
Cons:
- Potential increase in spending for higher revenue.
- Less focused on overall conversions.
6. Target Impression Share Bidding: Precision in Visibility
Automatically adjusting bids to achieve your Impression Share goal across campaigns, this strategy offers three options for ad placement: absolute top, top of the page, or anywhere on the page. Great for brand keywords, but it can be expensive.
Pros:
- Ensures visibility for brand keywords.
- Allows setting a maximum CPC bid limit.
Cons:
- May be costly with challenging impression share goals.
- Doesn’t necessarily optimize for conversions.
7. Manual Cost-Per-Click (CPC) Bidding: Hands-On Precision
Manual CPC Bidding puts you in control, enabling bid setting at the ad group or keyword level. It is ideal for newcomers and provides meticulous control but demands more effort and time for optimal results.
Pros:
- The highest level of control over bids.
- Flexibility with individual bid settings.
Cons:
- Requires more time and experience.
- Limited detailed reports compared to automated bidding.
Important Note: Keyword level bids override ad group level bids.
8. Enhanced Cost-Per-Click (ECPC) Bidding: Smart CPC Evolution
Enhanced CPC (ECPC) augments manual CPC bidding, allowing Google to adjust bids based on conversion likelihood. While it increases CTR and CVR, it also poses the risk of higher CPCs and increased spending.
Pros:
- Typically boosts CTR and CVR.
- Expands audience reach effectively.
Cons:
- May lead to unprofitable CPC increases.
- Lacks bidding control, potentially exceeding daily budgets.
Pro Tip: ECPC often enhances click-through and conversion rates, reaching a broader audience.
9. Viewable CPM (Cost Per 1,000 Impressions) Bidding: Display Network Brilliance
Exclusive to Display Network, this strategy charges for viewable impressions only. It is ideal for raising brand awareness and ensures payment only when your ad is seen, eliminating waste.
Pros:
- Ideal for brand awareness campaigns.
- Predictable pricing per viewable impression.
Cons:
- Lower ROI on low-traffic sites.
- Primarily for brand visibility, not conversions.
10. Maximum CPV (Cost-Per-View) Bidding: YouTube Campaign Mastery
Tailored for YouTube campaigns, Maximum CPV lets you set the highest bid for a video view or ad interaction. Pay only for actual pictures, making it cost-effective for brand awareness.
Pros:
- Great for driving actual views.
- Cost-effective with typically low CPVs.
Cons:
- Primarily an awareness strategy.
- Full 30-second ad views can be challenging to attain.
11. Target CPM (Cost Per 1,000 Impressions) Bidding: YouTube Precision
Previously for display campaigns, and now exclusive to YouTube, Target CPM Bidding charges the specified average bid for every 1,000 ad impressions. It is ideal for reaching unique viewers and boosting brand awareness.
Pros:
- Maximizes unique viewer exposure.
- A strategic approach for brand awareness.
Cons:
- Pays for impressions regardless of skips.
- Potential for paying for significant waste.
12. Portfolio Bid Strategies: Harmony Across Campaigns
Portfolio Bid Strategies introduce cohesion by applying a single bid strategy across multiple campaigns. They are ideal for setting bid limits and leveraging faster learning speeds by referencing data across diverse campaigns.
Pros:
- Allows setting maximum CPC in some strategies.
- Faster learning due to data
- Cross-referencing.
Cons:
- Requires similar tCPA goals across campaigns.
- May result in performance disparities across campaigns.
Pro Tip: Use Portfolio Bid Strategies for unified control and efficient learning across multiple campaigns.
Optimize for Performance: Tailor Your Bids for Maximum Impact
1. Bid Adjustments: Tailoring for Maximum Impact
Did you know that devices, days, times, and locations each dance to their unique performance tune? Dive into Google Ads reports to unravel the metrics magic. Identify the sweet spots and tweak your bids up or down accordingly.
For instance, if mobile devices are the unsung heroes of conversions, crank up the offer by 20% for that campaign. Keep in mind smart bidding strategies are wizards at automagically adjusting bids based on performance.
Pro Tip: Explore the 8 different bid adjustment types for a comprehensive bidding strategy.
2. Bidding Rules: Crafting a Symphony of Automated Precision
Google Ads bestows you the power to set bidding rules that choreograph pauses, plays, and bid changes. Whether you’re orchestrating at the campaign, ad group, ad, or keyword level, seize the opportunity to set rules that elevate your performance.
Imagine raising bids by a set percentage if the average cost per conversion hits a bullseye. Creating bidding rules is your backstage pass to a seamlessly automated bidding symphony.
Pro Tip: Master the art of automated rules through Google Ads tools and settings.
3. Bidding Scripts: Scripting Success Beyond Limits
Step into Google Ads scripts, where automation meets creativity. These scripts allow you to conduct a symphony of bidding maneuvers based on time intervals and metrics. Imagine adjusting bids based on weather patterns or any other ingenious idea.
Dive into the technical nuances and unleash the potential of bidding scripts to elevate your campaigns to unprecedented heights.
Pro Tip: Explore 14 free bidding scripts for a touch of automation brilliance.
4. Bidding for Sales, Not Just Conversions: Decoding Keyword Value
Avoid chasing conversions for the sake of numbers. Your aim? Sales, revenue, and business growth. Not all keywords are cut from the same cloth, so identify the ones that wield the magic of sales generation.
Embrace a more aggressive bidding strategy for these high-value keywords, even if it means a slightly higher cost per conversion. The ultimate goal? Closing more deals and boosting your revenue.
Pro Tip: Dive into the world of offline conversion tracking for a complete sales spectrum.
5. Seasonal Trends: Dancing to the Rhythm of Time
In the world of Google Ads, seasons dictate performance. Understand the ebb and flow of your industry’s seasonal trends.
Bid aggressively when the holiday windfall arrives, but be ready to dial it down when the festive fervor fades. Navigate the annual performance tides to strategically position your bids and capture each season’s essence.
Pro Tip: Craft a dynamic bidding strategy aligned with yearly seasonal fluctuations.
6. Different Keywords, Different Offers, Different Margins: Tailoring Bids with Finesse
Every keyword tells a unique story; not all bids should sing the same tune. If you’ve experimented with split testing your landing page offers, you understand the nuanced dance of conversions.
Stay away from the one-size-fits-all bidding mentality. As you uncover new offers, watch how these changes ripple through the time to close and sales rates after snagging that initial lead.
Pro Tip: Embrace diversity in bidding goals based on the varied nature of keywords.
7. Bid Bumping: A Symphony of Strategic CPC Maneuvers
Bid conservatively? What if you flipped the script? Bid bumping is your ticket to maintaining a high rank even after gracefully lowering your bids.
It’s a ballet of paying a temporary higher CPC, dancing to a higher click-through rate, and then gracefully lowering bids. Watch your performance stay stellar as your average CPC and conversion cost plunge.
Pro Tip: Embrace bid bumping to balance performance and cost-effectiveness.
8. RLSA Competitor Bidding: A Strategic Encore
Remarketing Lists for Search Ads (RLSA) competitor bidding is your encore performance in retargeting.
By layering a remarketing audience onto a competitor search campaign, you unleash a bidding strategy that’s both aggressive and conversion-focused. Convert those familiar with your brand who’ve been exploring elsewhere, turning past visitors into delighted customers.
Pro Tip: Master RLSA competitor bidding for a competitive edge in search campaigns.
9. Bidding on Branded Keywords: Fortifying Your Digital Citadel
Bidding on branded keywords isn’t just about brand control; it’s a strategic move that amplifies overall account health. Redirect branded visitors to a dedicated landing page for an enhanced experience.
This not-so-obvious bidding tactic can influence performance improvements for non-branded keywords, creating a ripple effect of success.
Pro Tip: Consider the broader impact of bidding on branded keywords for holistic account health.
Summarizing Google Ads Bidding
Mastering Google Ads is not in setting up a budget and forgetting about it; rather, one needs to understand every type of strategy available and match it accordingly with your business goals.
Be it the need to drive more traffic, maximize conversions, or gain revenue, there is a type of bidding strategy for all these purposes.
With all of these 12 essential strategies, it is now time to test them and see which one would give your business a real boost to push sales and growth.
Suggested read: Customer Acquisition Cost (CAC): 10 Optimization Tips
Common FAQs on Google Bidding Strategy
Is it possible to switch bidding strategies mid-stream?
Yes, you can switch strategies in the middle of a campaign. Just remember, though, that too much switching around may break the learning phase of the automated strategy.
How much data will I need before using automated bidding strategies?
For automated strategies such as Target ROAS or Target CPA, it is always helpful to have a good base of at least 30 conversions in the past month for the algorithm to optimize properly.
My Target CPA or ROAS isn’t being met.
If the target CPA or ROAS cannot be reached with Google, reduce your target to more historically supported levels or increase your ad budget.
