Google Ads Bidding Strategies to take your Campaign to the next level.
The digital marketing landscape has shifted dramatically, and Google Ads is one of the platforms that has been instrumental in this evolution of digital ads.
Google Ads is one of the essential and most powerful online advertising platforms available, as it ensures and provides prospective consumers with quick, secure traffic and leads. One of the key factors to generate quality traffic and leads is using the right bidding strategy for the campaign. Web Trainings Academy offer in-depth bidding strategies class in our Google Ads Course.
In this article, you can learn in-depth about different bidding strategies.
What is Ad Auction and Bidding Process?
Ad Auction
Google uses the Ad Auction process to determine which ads will show on different positions of Search results and what will be the CPC for each advertiser.
Google Ads runs a lightning-fast ad auction every time someone searches on Google or visits a website that displays advertising to decide which ads should appear.
How does Google determine the Ad Position?
Google uses an AdRank Factor to determine the position of the ad. AdRank is generated by using MAX CPC & Quality Score (QS) of the keyword. The advertiser with the highest AdRank will get the 1st position, then 2nd AdRank will get 2nd position, and so on.
Based on the position of the Ad, the bidding strategy of the advertiser, Google will determine the CPC for that specific click.
In this entire process, the bidding strategy will play a vital role, because it determines who much you are willing to bid in the auction.
Types of Google Ads Bidding Strategies
Google Ads Manual Bidding
It is possible to define your maximum cost-per-click (CPC) for your keywords using this bidding strategy. Using manual CPC bidding, you can specify the maximum amount you are willing to spend for each click on your ads.
Google Ads Automated Bidding Strategy
Automated bidding eliminates the need for human labor and guesswork to generate bids that match your performance objectives. Google Ads determines the bids for your ads based on the probability that the advertisement will result in a click or a conversion that will assist you in achieving a particular business objective, such as increasing clicks or conversions.
Types of Google Ads bidding strategies:
Manual CPC
Manual CPC Bidding is a strategy in which you can control the CPC for each keyword. You can define a different CPC for each keyword.
This is an excellent bid strategy if you need to drastically reduce your ad costs but don’t want to lose too much market share too soon.
This strategy is recommended for campaigns with a limited budget and specific target keywords.
Enhanced CPC (ECPC)
When you choose Enhanced CPC (eCPC), Google can increase or decrease your bids automatically based on the probability of the conversion.
Consequently, if Google thinks that a conversion is probable, it will increase your maximum CPC bid by up to 10%. Also if the conversion probability is low, Google can decrease the Bid price by 10%.
This strategy is recommended for campaigns with a limited budget and also don’t want to lose traffic to the bid limit.
Maximize Clicks
The Maximize Clicks strategy is utilized to increase the number of visitors to your website within your daily budget. Google automatically calculates bids to help you maximize clicks while remaining within your budget. The strategy is offered in two flavors: a standard strategy for a single campaign and a portfolio bid strategy.
We also have the option of setting a Max CPC Limit to restrict the bid. This helps to control the bid price without manually setting the bid price.
This strategy is recommended for most advertisers who want to generate quality traffic.
Maximize Conversions
Maximize Conversions sets bids based on previous campaign success and auction data from the retailer’s rivals to obtain the most conversions for the least amount of money. Because the “Maximize Conversions” goal is to generate maximum conversions, Google may decide to spend its whole daily budget to gain as many conversions as possible.
This strategy is recommended for advertisers whose primary goal is conversions/leads.
Target CPA (Cost per Acquisition)
Conversions per acquisition (CPA) is a Smart Bidding method that automatically sets bids to get as many conversions (customer actions) as possible. Creating a bid strategy with a Target CPA (target cost-per-action) option enables you to choose an average cost for each conversion.
When a customer does a Google search for your product or service, Google Ads uses your Target CPA to calculate the optimal bid based on the likelihood of the auction converting.
When using Target CPA bidding few conversions may cost more and a few may cost lower than your Target CPA, but overall Google manages to maintain your Target CPA.
This strategy is recommended for advertisers who want conversions at specific costs.
Maximize Conversion Value Bidding
As part of Google Marketing Live 2019, the firm unveiled a new bidding strategy dubbed Maximize Conversion Value, which allows merchants to optimize ads based on parameters like sales revenue or profit margins. Google then generates bids based on these goals to maximize possible return on investment.
This strategy is recommended for E-commerce websites or transactional websites which has a payment gateway on their website.
Target ROAS (Return On Ad Spend)
Your desired return on investment (ROI) is the average conversion value (for example, revenue) for every dollar spent on advertising. Remember that the return on investment (ROI) target you choose may affect the number of conversions you receive. Choosing an overly ambitious objective, for example, may result in fewer visits to your ads.
We can set this value as a percentage and Google will bid to achieve our target ROAS.
This strategy is recommended for E-commerce websites or transactional websites which has a payment gateway on their website.
Target Impression share
An automated bidding method places bids to show your ad at the absolute top of the page, at the top of the page, or anywhere on the Google search results page. It is used to improve the chances of your ad appearing at the top of the page.
This strategy is recommended for websites that are focussing on Brand visibility.
vCPM Bidding
VCPM means Cost per Thousand Visible Impressions. It is bidding used in display ads campaigns where we pay per impression instead of clicks. This bidding helps in displaying over ads on Google Display Network.
This strategy is recommended for websites that are focussing on Brand visibility.
CPV Bidding
Cost-Per-View (CPV) bidding is the most effective way for calculating the price you’ll spend for TrueView video advertising in Google Ads. CPV bidding is a technique of paying for video views or interactions (such as clicks on CTA overlays, cards, and companion ads)
This strategy is recommended for websites that are YouTube Ads and generate quality views on your videos.
CPI (Cost Per Install)
CPI (Cost Per Install) bids are only available for mobile apps campaigns and are limited to mobiles only. This bidding strategy is used for the Universal APP Campaign to get more app installs.
This strategy is recommended for Mobile Apps promotions only.
Conclusion
By using the right bidding strategy you can generate the right audience and get quality traffic and leads. Always experiment with Bid Strategies to find the best bidding strategy for your business. Hope, you like this article, for more such detailed strategies on Google ads, you can enroll for our advance Google ads course at web trainings academy.