27 Mar
Google Ads Bidding Strategy Simply Explained
Table of Content


When it comes to advertising on Google, the Google Ads bidding strategy is a step that should not be ignored at any point. If you choose a tactic that is tailored to both your target audience and your objectives, you will be well on your way to achieving success in your efforts. On the other side, if you choose the incorrect technique, you will burn through your financial resources without achieving any of your goals. In this article, we're going to talk about 11 different ways to bid on Google Ads. We provide an explanation of what each term means and when it should be used.

Google Ads bidding strategies

There are eleven various approaches to bidding that may be used when you are running advertisements via Google Ads. Achieving one's objectives may be done through any one of these several methods.

Still, your goal is not the only thing that affects your choice. 

In fact, the choice between one strategy and another will also depend on things like: 

  • Your account experience (Have you just created your Google Ads account?) (Has it ever gathered information regarding campaigns and the performance of campaigns?)
  • Your budget (which may vary depending on whether you have 20 euros per day or 100 euros per day to spend on media) You should also be aware that there are two distinct categories of tactics, namely:

Manual bidding techniques

Advertisers have control over their Google advertising by using these several strategies. The idea of control is important because it makes it possible, among other things, to evaluate, change, and improve campaigns. 

For example, if you use the manual method, you will be able to keep track of the keywords for which your ads are showing up. It lets you find the right keywords and spend more money on them to get more bids and better results. 

Automatic bidding techniques

These tactics are intended to assist advertising in achieving success in competitive auction settings.

Many believe that the atmosphere of Google AdWords is complicated due to the fact that there are so many factors that determine how individuals behave when they are there. For example, location, time, and the device. It is challenging to pay attention to all of these signals at the same time.

Google Ads Bidding StrategyIn this scenario, the fact that you do not have the appropriate setup may force you to waste your money without achieving the outcomes that you want.

To choose the right automated bidding method, the following factors should be taken into account: 

  • The most effective method for configuring different conversion parameters
  • What was the quality of your monitored data?
  • How many different campaigns do you currently run (in terms of traffic and conversions)?

If you don't meet the above requirements, you should move on to another option, even if the results of campaigns that use an automated bidding method may be interesting. It is possible that your results may fail if you do not comply with any of these prerequisites. 

For example, if there is a problem with the conversion parameters, Google's algorithm would optimize your campaign in the wrong way. Because of this, your first financial commitment will be a complete waste of money.

Google Ads Bidding Strategies for Competitive Bidding on Traffic

If getting people to visit your website is one of your main goals, try the following bidding strategies: 

  • Manual CPC bidding plan
  • Manual bidding approach

It may be used for advertisements on the Search Network, the Display Network, and Google Shopping. It was developed for use with all sorts of accounts, with a primary focus on assisting novice users. If you use this approach for bidding, you will have the greatest influence over the bids placed in Google Ads.

You have the ability to alter the maximum cost per click for each ad group and keyword when you use the bidding method known as "Manual CPC."

You can increase or decrease your bid on each item depending on your estimation of how much money it will ultimately be worth. You also have the option to stop placing bids on keywords that aren't bringing in sales. On the other hand, having greater control gives you more time to adjust your own bids. 

To put it another way, if your account is divided up into a number of different campaigns and a number of different ad groups, you should anticipate spending a significant amount of time working on it.

When you choose this method of bidding, make sure that the option that is located next to "Optimized CPC" is not checked. This will ensure that the manual CPC method of bidding is used.

In case your campaign is not operating as expected, Google will let you know. But if you don't have enough history in your account to use automated bidding or if you don't have a lot of money to spend, this method may work for you. If you are new to Google Ads, you should use automated bidding tactics.

When would it be appropriate to apply manual CPC bidding?

To create an account for a beginner: 

  • If you are just starting out with Google Ads or have a very limited advertising budget,
  • If you have an account that has been around for a while, you are aware of what the typical CPC is, and you decide to go with this technique so that your expenditures remain the same.

How to use the bidding tactic known as "Max Clicks"

The Max Clicks automated bidding method, which works for all account types, is based on how much money you can spend each day. Google uses this tactic in an effort to get as many clicks as possible while making the most efficient use of its advertising money.

The issue with using this tactic is that it does not make it possible for you to get qualified or beneficial visitors. Therefore, you should not consider doing so if you want them to purchase your products. On the other hand, this is the most effective method for attracting a large number of visitors.

When is the best time to use the "Max Clicks" Google Ads bidding strategy? 

If you have a limited advertising budget or if people do not often search for your keywords. And when all you want is for people to visit your website, you don't expect anything in exchange for your efforts. You should have been able to figure out by now that this is not a very good strategy.

Conversion bidding tactics

If one of your main goals is to make more sales, consider the following bid-placing strategies: 

Semi-automatic trading technique

It may be used for advertisements on the Search Network, the Display Network, and Google Shopping. Designed for brand-new accounts only. Describe the most effective way to bid using the CPC system. This approach to bidding incorporates both automated and human approaches to optimization.

analysisWith this Google Ads bidding strategy, you will set the cost per click for each ad group and keyword separately. After that, the algorithm will determine the optimal way to make them function. Google adjusts the amount it is willing to pay for an item depending on how likely it is to make a purchase. The average cost of a click has been predetermined, and this factor influences the bids that are placed.

Google will decrease bids in order to save money if the search seems to be very competitive and if the prices are too high. This is done because the searcher is less likely to convert if the costs are too high. On the other hand, Google will raise the stakes whenever it finds an opportunity that can be obtained with little effort.

You also have the option of selecting whether you want Google's algorithm to prioritize increasing the number of conversions it gets or increasing the amount of money it makes from each conversion. But you can only use this bidding strategy successfully if you have already set up Google Ads to track conversions with different values or to track conversions that change based on the cost of transactions as a whole.  

When is the right time to use an optimal cost-per-click (CPC) Google Ads bidding strategy?

Sometimes there isn't enough data in your Google Ads account for a completely automated bidding strategy.

Strategy for bidding based on the desired cost per purchase

Open to advertisements through search, display, and video platforms. By using the bidding method called "Target CPA," you can make sure that the cost of conversions is as low as possible. In point of fact, a target CPA gives you the ability to convert customers for a certain amount of money.

biddingThe cost of getting a new client is called the "cost per acquisition," and we'd like to take this chance to remind you of that. If you use this tactic, Google will automatically change your bids for each of your campaigns until you achieve the CPA that you have set as a goal. 

As you evaluate your work, you will notice that some acquisitions are costing you more than your goal cost per acquisition (CPA). You don't need to worry about it since Google will make sure that your bids are proportional to the amount that you want to pay.

This method of bidding is reserved for clients that have been working with the company for some time and are able to estimate an average CPA based on their experience as well as a review of past performance.

If you are new to Google Ads and pick this technique by establishing a goal CPC without thinking, you might actually prevent Google's algorithm from operating and end up with no results. It is difficult to establish objectives for reducing spending when you have a CPA that is so typical.

Your objective will be to strike a healthy balance between the number of conversions you acquire and the amount of money it costs to achieve those conversions.

When is the right time to use a targeted CPA strategy? How do you know?

An account that has been operating for some time has a goal of cost-per-acquisition (CPA) and is aware of how much value a conversion brings to the company.

Target ROI bidding techniques

This format can be used for ads on the search network, the display network, Google Shopping, and video ads. Using the Target ROA bidding method, you can make sure that your campaign is as profitable as it can be. By using this tactic, Google will modify your bids based on the ROA that you have set as a goal in order to get the most possible value from your conversions.

  • As was the case before, this strategy is only for accounts that have been running for a while. 
  • You need to have a good idea of your typical ROAS before you start using this method.
  • When is the right time to employ the Target ROA Google Ads bidding strategy? How do you know?
  • For the seasoned account owner who wants to get the most out of their campaigns.

This is what may take place:

  1. You are already proficient in the use of Google Ads.
  2. By looking at your campaigns, you may establish your average ROI.

 If you want to increase the amount of money you earn, you should start a new campaign that has a higher ROAS. This new goal ROA will be checked progressively until a specific threshold is attained. You will make fewer purchases, but each of them will be more lucrative. It's up to you to discover the appropriate balance. Remember that ROAS in Google Ads is presented as a percentage.

How to utilize the "Maximum Conversions" bidding approach

Advertising on the Search Network, Display Network, and Google Shopping may utilize it.

strategy With this automated bidding method, you may achieve as many conversions as possible while making the most of your cash. Using this method, Google will change your bids automatically to give you the best chance of making a sale. After a few days of advertising, you should see whether it's worth it. 

There may be numerous conversions, but it will be vital to check: 

  • For what price?
  • When should you utilize the "Maximum Conversions" bidding strategy?
  • To acquire the most sales from an account with a lot of expertise.
  • To get the most out of your new Google Ads account when you initially start it.

This is an example situation:

You have established a Google Ads account for the first time. You use the "Maximum conversions" bidding approach if you want to receive as many clicks or results as rapidly as feasible. After looking at the first results, the next step will be to make a better plan. For example, CPC places bids manually such that the cost and quantity of conversions obtained are balanced.
 

Google Ads bidding strategy: Get the most out of every convert

  • Automated betting methods,
  • Search advertisements may make use of it,
  • Suitable for accounts with a lengthy history,
  • Describe the bidding method to enhance conversion value.

 Using this method of bidding, you can get the most sales for your money every day. The value of all the clicks in your campaign that led to conversions is the conversion value. This may be because online shopping cart settings set values for other activities that are already set up. Using this method, Google will alter your CPC bids so that you receive the greatest conversions for your money. When your ad goes up for auction, it looks at your account history to figure out the highest bid.  

When should you apply the Max Conversion Value bidding strategy?

For accounts with a huge number of offerings and a broad variety of pricing and experiences. This also works for accounts whose values are connected to particular conversion activities.

Bidding tactics to generate awareness

If you want to give your company a boost, here are several methods to accomplish that through auctions.

  • Eligible for search advertisements are accounts that have been around for a specific period of time.
  • An explanation of the target impression share bidding approach. This automated bidding method helps you market your business, grow your reputation, and reach as many consumers as possible.

But you have to realize that your goal for impression share is only a target. Realize that your budget and quality score will still affect your success.

Additionally, impressions do not ensure conversions. You should be aware that your ads may appear toward the bottom of search results. It will be crucial to monitor KPIs for impressions to assess how effectively your efforts are working. 

Yet for branded advertisements, the Target Impression Share bidding technique remains an effective one. It is also meant to show results for a small number of the most important keywords for your brand. 

When should you use the Target Impression Share bidding strategy?

Your objective is to get to the top of the search results for terms that are essential to you and rank above your rivals.

  • By vCPM bidding strategy: (viewable CPM) (viewable CPM)
  • Automated betting method
  • Advertising on the Display Network and YouTube may utilize it
  • Suitable for all account types
  • The vCPM bidding technique is broken
  • The "vCPM" bidding approach is used to distribute campaigns that wish to catch people's attention.

This method only works for display advertisements. Hence, only the media networks and YouTube may utilize it. This plan depends on how much you are willing to pay to receive 1,000 impressions. In other words, to be viewed by users 1000 times. After 2 seconds of transmission, a YouTube ad counts as an impression. On a display network, one second of a broadcast is enough to count as one impression. 

Where should a vCPM bidding approach be used?

when you want to meet a group of people.

CPM Bidding Strategy

Advertising on the Display Network and YouTube may employ an automated bidding method.

For all sorts of accounts, the CPM bidding technique is explained. With this bidding approach, you pick how much you're prepared to pay for every 1,000 impressions.

We remind you that the impression displays how many times individuals have viewed the ad. This bidding method is for image advertising exclusively. Due to this, it is not in the research network. 

Cost per thousand impressions (CPM) is a bidding tactic. Some facts and details.

  • It is worth using when you wish to meet a group of individuals.
  • There is an automated bidding technique for YouTube advertising.
  • It is perfect for all sorts of accounts.
  • CPV-based bidding approach
  • The "CPV" bidding strategy is exclusively applied for the video ad.
  • With this bidding method, you pay for people to view or engage with your films
  • Users may click on a call to action, a form, a banner, or even an overlay
  • How much time a person watches depends on how much the watching will cost.
  • With this betting strategy, the view is tallied after 30 seconds.
  • If your ad is shorter than 30 seconds, a view will be counted when it is completely watched or engaged with.
  • When you utilize this method, you should set the highest bid per view or interaction.
  • If you are employing this method for the first time, you need to go through a testing period.
  • Start with a fairly low rate and then change it up or down depending on what happens. For example, if your ad isn't appearing, you might boost your ad bid.

Pay attention to the quality score of your ad and its location among other advertisements. This will change your cost per view, letting you pay the right amount for better results. When you keep getting the same results, you can raise your bid to reach more people. 

In what conditions does the CPV bidding method work?

This is now the greatest approach to utilizing video for advertising. In reality, paying for a 30-second view or engagement costs more than paying for a 2-second view (see vCPM method) (see vCPM strategy).

Conclusion

In summary, selecting a Google Ads bidding strategy for a campaign is not simple. To discover the correct technique, you need to think about your objectives and the age of your account and perform some testing. Before you start, ensure your conversions are set up precisely. This is a vital aspect of understanding how well your campaigns are functioning and how you can improve them.