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Choosing the right bid strategy in Google ads is the foremost part of the Google ads, If you do not know what is right bid strategy for your campaign, you can end up wasting your entire budget without any profit. When you choose the right bid strategy for your campaign then you can take your campaign performance to the next level and make it more profitable. In this post we will discuss about Google ads bid strategies and how you can pick right one for your campaigns.
If you are running search, display or shopping campaigns then the 7 bid strategies work extremely well but it also depends upon the one you are selecting in campaign setting and how to use them for more advantage.
1) Target CPA (Cost Per Acquisition):
Target CPA is the best option for you, if you want to optimize conversions with specific amount. This bid strategy helps you to get down CPA. By this bid strategy Google automatically sets the bid for your campaign based on the CPA. Choosing this bid strategy could be quite difficult if you don't know what your acquisition cost is.
When you can choose CPA bid:
For the new campaigns Google does not recommend the CPA bid strategy. Before opting for the CPA bid strategy your campaign should have a minimum of 30 conversions. After implementing this bid strategy, you must give 30 days and compare the campaign performance with your previous month.
2) Target ROAS Bid (Return on Ad Spend):
This one is smart bidding according to Google algorithm and works well in eCommerce campaigns. In this bid strategy Google set bid for maximum conversion value basis on your return that you want from your ads send.
When you can choose Target ROAS Bid:
Before going to select ROAS bid strategy your campaigns have maximum conversion data then it will perform extremely good for you. Google recommend that your campaign have at least 50 conversion in past 30 days. After implementing this bid strategy you must wait for a minimum of 6 weeks.
3) Maximize Conversion Bid:
Maximize conversion is a smart and fully automated bidding strategy. The goal of the strategy is to get as many conversions as possible from your daily budget. Google always try to spend entire budget during this strategy and avoids setting share budget while using this strategy.
When you can use maximize conversion bid:
When you go with maximize conversion bidding strategy, it is not required that your campaigns should have historical conversion data. Maximize Conversions bid will try to fully spend your average daily budget, so if you are currently spending much less than your budget, Maximize conversions could increase the spend significantly.
4) Maximum Conversion Value Bid:
Google added this bidding strategy in August 2019 and it is works like target ROAS( Google algorithm tries to generate maximum return on the ads spend). The main difference in ROAS and Maximum conversion value is that you cannot set maximum ROI in maximum conversion value. While using this bid strategy Google algorithm tries to generate maximum conversion value with your daily spend budget.
When You can use maximum conversion value bid:
To use this bidding strategy Google did not give any specific data instruction. When you use this bidding strategy Google automatically finds an optimal CPC bid for your ad, each time. During this bidding strategy Google helps you to get conversions that are the most valuable for your campaign while spending your budget.
5) Enhanced Cost Per Click (ECPC)
This bidding strategy is a mix of manual action and smartness. While you can set CPC manually Google has the authority to increase it automatically where you have high chance to generate more sales and leads. ECPC bid strategy is available on both search and display campaign but not available in shopping campaign.
When You can use maximum conversion value bid:
You can use this bidding strategy for scratch campaigns because it allows you to spend according to your campaign performance easily. You do not need large amounts of data like with target CPA. Therefore, small, and mid-size advertisers can safely leverage this strategy across any type of campaign.
6) Maximize Clicks Bid:
Maximize clicks bid strategy is similar to Maximize conversion. This bid strategy focuses more on the clicks instead of conversion.
When You can use maximum clicks bid:
This bid strategy is good to drive maximum traffic, if your target is to get maximum traffic by Google and you do not have any conversion tracking place.
7) Manually CPC Bid:
You have 100% control on the Manually CPC bid strategy and therefore it is good for you if you are going to launch new campaigns.This strategy designed to give complete control to advertiser on their bid.
When You Can Use Manually CPC Bid:
If you have a lot of time to manage your campaigns, or simply want to have complete control over your bids, this strategy makes sense.
8) Target Impression share Bid
In this bid strategy you can give direction to Google about "where do you want to place your ads", "percent of the impression shares do you want" and "set maximum CPC bid limit".
When You Can Use Manually CPC Bid:
This bidding strategy can be used to get maximum impression and visibility and is best for reaching specified visibility, awareness, and goals. It could be a good option for your brand campaigns because you can ensure your ad always shows when someone searches for your brand.
Hope you have gained a good idea about the different bidding strategies. Now make sure you choose the correct bidding strategy that can help you to make your campaigns profitable. If you have any queries, place them in the comment section, and I will get back to you.
If you are running search, display or shopping campaigns then the 7 bid strategies work extremely well but it also depends upon the one you are selecting in campaign setting and how to use them for more advantage.
- Target CPA
- Target ROAS
- Maximize Clicks
- Maximize Conversions
- Maximize conversion value
- Target Impression share
- Manual CPC
- Manual ECPC
1) Target CPA (Cost Per Acquisition):
Target CPA is the best option for you, if you want to optimize conversions with specific amount. This bid strategy helps you to get down CPA. By this bid strategy Google automatically sets the bid for your campaign based on the CPA. Choosing this bid strategy could be quite difficult if you don't know what your acquisition cost is.
When you can choose CPA bid:
For the new campaigns Google does not recommend the CPA bid strategy. Before opting for the CPA bid strategy your campaign should have a minimum of 30 conversions. After implementing this bid strategy, you must give 30 days and compare the campaign performance with your previous month.
2) Target ROAS Bid (Return on Ad Spend):
This one is smart bidding according to Google algorithm and works well in eCommerce campaigns. In this bid strategy Google set bid for maximum conversion value basis on your return that you want from your ads send.
When you can choose Target ROAS Bid:
Before going to select ROAS bid strategy your campaigns have maximum conversion data then it will perform extremely good for you. Google recommend that your campaign have at least 50 conversion in past 30 days. After implementing this bid strategy you must wait for a minimum of 6 weeks.
3) Maximize Conversion Bid:
Maximize conversion is a smart and fully automated bidding strategy. The goal of the strategy is to get as many conversions as possible from your daily budget. Google always try to spend entire budget during this strategy and avoids setting share budget while using this strategy.
When you can use maximize conversion bid:
When you go with maximize conversion bidding strategy, it is not required that your campaigns should have historical conversion data. Maximize Conversions bid will try to fully spend your average daily budget, so if you are currently spending much less than your budget, Maximize conversions could increase the spend significantly.
4) Maximum Conversion Value Bid:
Google added this bidding strategy in August 2019 and it is works like target ROAS( Google algorithm tries to generate maximum return on the ads spend). The main difference in ROAS and Maximum conversion value is that you cannot set maximum ROI in maximum conversion value. While using this bid strategy Google algorithm tries to generate maximum conversion value with your daily spend budget.
When You can use maximum conversion value bid:
To use this bidding strategy Google did not give any specific data instruction. When you use this bidding strategy Google automatically finds an optimal CPC bid for your ad, each time. During this bidding strategy Google helps you to get conversions that are the most valuable for your campaign while spending your budget.
5) Enhanced Cost Per Click (ECPC)
This bidding strategy is a mix of manual action and smartness. While you can set CPC manually Google has the authority to increase it automatically where you have high chance to generate more sales and leads. ECPC bid strategy is available on both search and display campaign but not available in shopping campaign.
When You can use maximum conversion value bid:
You can use this bidding strategy for scratch campaigns because it allows you to spend according to your campaign performance easily. You do not need large amounts of data like with target CPA. Therefore, small, and mid-size advertisers can safely leverage this strategy across any type of campaign.
6) Maximize Clicks Bid:
Maximize clicks bid strategy is similar to Maximize conversion. This bid strategy focuses more on the clicks instead of conversion.
When You can use maximum clicks bid:
This bid strategy is good to drive maximum traffic, if your target is to get maximum traffic by Google and you do not have any conversion tracking place.
7) Manually CPC Bid:
You have 100% control on the Manually CPC bid strategy and therefore it is good for you if you are going to launch new campaigns.This strategy designed to give complete control to advertiser on their bid.
When You Can Use Manually CPC Bid:
If you have a lot of time to manage your campaigns, or simply want to have complete control over your bids, this strategy makes sense.
8) Target Impression share Bid
In this bid strategy you can give direction to Google about "where do you want to place your ads", "percent of the impression shares do you want" and "set maximum CPC bid limit".
When You Can Use Manually CPC Bid:
This bidding strategy can be used to get maximum impression and visibility and is best for reaching specified visibility, awareness, and goals. It could be a good option for your brand campaigns because you can ensure your ad always shows when someone searches for your brand.
Hope you have gained a good idea about the different bidding strategies. Now make sure you choose the correct bidding strategy that can help you to make your campaigns profitable. If you have any queries, place them in the comment section, and I will get back to you.
