Bidding strategies Google Ads: which one should I choose?
Once you create a campaign in Google Ads, the bidding strategy is an important part. Because, how successful your campaign is depends (among other things) on your chosen bidding strategy. The bidding strategy determines what your ads optimize on: impressions, clicks, number of conversions or conversion value. But how do you choose the bidding strategy that suits your campaigns and goals? Of course, it’s a shame if your results lag behind when they shouldn’t.
In this article, we’ll tell you more about the different bidding strategies within Google Ads and how they can help you optimize your ad campaigns.
1. Manual CPC
bidding strategy if you want control over what a click on a keyword can cost at most. Your set maximum CPC in Google Ads is fixed, and Google will never spend more per click than this set limit.
This bidding strategy is labor-intensive, as you have to manually update bids for your campaign to be successful.
Although this was always a popular bidding strategy before, Google’s machine learning has evolved tremendously. As a result, its popularity has waned and shifted to smart bidding strategies. These are often successful(er) because Google has data that no one else has insight into.
2. Enhanced CPC
Enhanced CPC is a smart bidding strategy within Google Ads. While this bidding strategy is similar to manual CPC, there is a slight difference. As with manual CPC, you set a maximum click price. Only Google now has the freedom to increase the bid by up to 200%.
This bidding strategy in Google Ads ensures that relevant data is collected and money is then spent on keywords that convert. It is therefore the ideal strategy as soon as you create a new campaign and there is still little data available or when in campaigns that are achieving few or no conversions.
3. Search impression share
Search impression share in Google Ads allows you to display your ads at a desired position within the search results page by automatically adjusting bids. This bidding strategy allows you to choose between three positions: anywhere on the search results page, at the top of the results page or at the very top of the page. You set what the target display rate should be.
This bidding strategy is especially recommended when you want your ads to be shown frequently for specific keywords. Think, for example, of maximum visibility for your brand. In this case, you can opt for a display rate of 90% to 100%. In that case, do set a maximum cost per click so you can control costs.
The advantage of this strategy lies in the control you have over the position where your ad is displayed. You only pay for impressions that reach the desired position, giving you more budget control.
4. Maximise clicks
The ‘Maximise clicks’ bidding strategy, as the name suggests, is all about maximising the number of clicks on your ads. Here, Google does not take into account what the searcher does after clicking on the ad. So it is all about getting as many visitors to your website as possible, without taking into account achieving a conversion.
This makes the bidding strategy less suitable if your goal is to increase sales or leads.
5. Maximise conversions
If you choose the Google Ads bidding strategy ‘Maximise Conversions’, you focus on maximising conversions. Conversions can include filling in a contact form, making a purchase and downloading a whitepaper. This approach is smart when you are dealing with a limited budget and still want to generate as many leads as possible. This is because Google only shows your ads when there is a high chance of a conversion.
With this strategy, it is important that you set clear goals. Decide how much you are willing to spend per conversion and which specific conversion you set at ‘primary’ and ‘secondary’.
6. Target CPA Google Ads
The target CPA bidding strategy focuses on achieving a specific cost per conversion. In other words; you specify what cost you are willing to pay for each desired action, such as a purchase or a sign-up. Google Ads optimises your bids to achieve this goal. This strategy is ideal for advertisers who want to focus on maximising their conversions at a predetermined cost.
7. Target CPA
The target CPA bidding strategy focuses on achieving a specific cost per conversion. In other words; you specify what cost you are willing to pay for each desired action, such as a purchase or a sign-up. Google Ads optimises your bids to achieve this goal. This strategy is ideal for advertisers who want to focus on maximising their conversions at a predetermined cost.
After you set a CPA goal, Google Ads automates your bids to exploit potential conversion opportunities. This takes into account ad relevance, keyword choice, competition and previous campaign performance. With this bidding strategy, it is important that you have achieved enough conversions per campaign, as Google needs sufficient data to optimise your campaign accordingly.
8. Target ROAS
Target ROAS (Return On Ad Spend) is a smart bidding strategy and ensures that your campaigns are optimised based on every euro invested for maximum return. As such, this is a frequently chosen bidding strategy for businesses within e-commerce. With an ROAS of 700%, for example, you ensure that every euro invested in Google Ads results in €7 in sales.
How effective this bidding strategy is depends on the available conversion data. If you don’t have enough data, Google’s machine learning won’t be able to drive predictions properly. Don’t have enough data yet? Then opt for the ‘Maximise Conversions’ strategy.
Creating experiments
After you have chosen a bidding strategy, it is important to keep testing your campaigns. The market and Google never stand still. By using experiments, you can see what works and what doesn’t, without major negative consequences.
Want to test with a bidding strategy? Then choose a ‘Custom experiment’. This allows you to see what a different bidding strategy does to the results of your campaign.
Wondering which bidding strategy in Google Ads Adverge would choose for your business?
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