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Google Ads Bidding Strategies Explained Step by Step

Google bidding strategies are a number of Google pricing techniques created to increase brand awareness, likeability, and attention for your business. Numerous things need to be taken into account when choosing a Google bid strategy. These may include things like your target market, demographics, the vision and objective of your business, as well as the required budget for advertising.

You may assume that Google bid strategies have to do with the amount of money your business spends on Google Ads. Google Bidding Strategies, however, might be much more. In this article, we’ll examine the various Google Ads bidding strategies and demonstrate how to make the most of each to help you maximize the use of your advertising budget.

Creating bid strategies can enhance conversions by 142.86%.

How Does It Work?

Google provides you with a number of options for ad bidding, depending on the objective you wish to pursue. Google holds an auction whenever there is open ad space on a website inside the search network or in search results. An auction is used to choose which advertisements will appear in that area at a specific time. Your bid is submitted into the auction. In contrast to traditional auctions, where the highest bidder always wins the best spot, the top position can sometimes be acquired for less price.

This method contains quite a few difficult features, despite the fact that it could seem relatively easy. The ideal method for raising your bids is to comprehend these nuances. A few clicks that might not even convert your business could use up your entire budget if the actions you take are incorrect. However, you may improve your campaign’s success if you take the necessary safety measures.


Automatic or Manual?

What divides the two Google Ads bid kinds, manual and automatic?

In manual bidding, the advertiser selects the highest cost-per-click (CPC) at the keyword level that they are willing to pay for. Since it might be a burden to constantly alter bids if you’re managing many campaigns, most users choose automation. Unfortunately, using automated bidding to increase your budget from Google Ads sales is more difficult than it first appears.

Automatic Bidding with Google Ads

The benefit of using an automatic bid technique is that you only pay for Google’s billboard space when your advertisement is clicked, not when it is viewed. By using automatic bidding, you basically hand over control of the bidding process to Google, who will then decide how much you will pay for each click.

  • Impression Share

If raising brand recognition is the aim of your campaign, this form of bidding is perfect for you. Google will make an effort to optimize your bids in order to enhance the number of impressions you get. If visibility is your main purpose, you may select the proportion of impressions and where on the results page your advertising should show, such as at the top of the page. Google tries to show your ad to anybody who searches during the day using this strategy. As previously mentioned, your objectives are awareness and brand recognition, thus this bidding strategy won’t result in a lot of traffic and conversions.

  • Target CPM

The goal cost per thousand impressions is known as CPM. The letter “M” is derived from the Latin word mille, which means 1,000. This approach focuses on increasing campaign reach while keeping the average CPM cost at or below your target cost. It is related to your brand recognition and reach goals.

Automatic Smart Bidding with Google Ads

Google’s automated bidding strategies are becoming smart bidding as they develop. It is possible to utilize Google’s data to enable some automation while designing campaigns and still have some control over your budget during the bidding phase by using “smart” bidding techniques. Google advises customers to pick these strategies for smart bidding if they already have a specific amount of conversion data within their accounts.

  • Maximize Clicks

This strategy puts little focus on conversions; instead, it tells Google to generate as many clicks as it can within your budget. You may broaden the reach of your brand or enhance traffic with this strategy. Then Google tries to get you as many clicks as it can for the amount you are willing to pay. If your main goal is to get as much traffic as possible, a maximize clicks bid strategy may be right for your campaign.

  • Maximize Conversions

You can effectively tell Google that you want it to produce as many leads or sales for you as possible while staying within your budget by using maximum conversion bidding. Since your objective is conversion, the algorithm seeks to select individuals who can convert you and repeatedly display your advertisement. With this method, higher budgeted companies may invest in their marketing efforts and perhaps increase sales by a significant amount.

  • Maximizing Conversions with Target CPA

Your target CPA (Cost Per Action)is the normal amount you’re willing to pay for a convert. By turning on this feature, Google will work to increase conversions at the target CPA you choose. The “Cost Per Action” feature of this smart bidding method allows you to inform Google of the maximum price you’re prepared to pay for a lead or purchase.

It’s important to note that this bid strategy just seeks to stay under the designated goal cost per action and does not concentrate on conversion value.

  • Maximizing Conversion Value with Target ROAS

The average conversion value you want to obtain for every dollar spent on advertising is your targeted ROAS. To utilize this bid strategy, you must have a conversion tracking system that enables you to modify conversion values. This tactic works well for boosting conversion value while aiming for a particular ROAS. You may either set a specific value to particular conversions, or you can dynamically alter your conversion value based on factors like the cost of your items. Having at least 15 conversions in the last 30 days is another prerequisite for increasing your conversion with target ROAS.

You could tell yourself, “I want to substantially improve my earnings and set my target ROAS to 500%,” when you give it some thought. Because Google only has a certain ability to produce a specific amount of cash, setting this too high runs the danger of prohibiting you from generating big sales.

As a result, there has to be a constant balance between the actual and desired ROAS levels.

  • Maximizing Conversion Value

Without taking a particular ROAS into consideration, this automatic bid strategy will concentrate on giving you the greatest value in conversions. This bid technique disregards the target value and utilizes your whole budget to maximize conversion value.


Manual Bidding with Google Ads

Manual bidding options might not be as desirable as automatic bidding alternatives. However, you may look at it this way: by not giving Google complete control, you can develop your own plan, keep an eye on the outcomes, and adjust it as necessary while being sure to understand precisely why you’re raising or lowering your offer and why it best serves your company’s objectives.

  • Manual Cost-Per-Click (CPC)

With Manual Cost-Per-Click, you may manually set your maximum bid prices for each product, keyword, or for the entire ad group. More competitive terms are linked to higher cost per click. You may select how to acquire the most clicks for your budget using this bidding method.

  • Max Per View Price (CPV)

Using the Maximum Cost Per View option, you may select the maximum amount of money that you wish to pay on each view. Google won’t place a bid over your desired price or the highest cost per view you’re ready to accept. If you want to bid a maximum of $1 per view, for instance, each view will cost you $1 or less.







Zeynep Kezer / Performance Marketing Intern