You have different objectives for every business. These may be branding, leads generation, signup form submission, online sales, store visits or post engagement. For every objective, Google have provided you with various campaign types like search, display, shopping, mobile, you tube and universal app campaigns. Google provides several bidding strategies that are tailored to different types of campaigns.
What benefit you’ll get after reading this blog post
- After reading this blog, you’ll be able to decide which bidding strategy is best and right for your goal.
- You’ll have complete knowledge of which Google Ads Bidding Strategies are available in 2024.
- You’ll get more profit out of your campaigns by choosing the right bidding strategy. If you want us manage your campaigns Contact US.
- You’ll be helping your clients getting better ROI from their business and so you’ll have a better reputation if you’re a freelancer or running a Digital marketing agency.
- If you’re into a job in Digital Marketing, you’ll be considered as an expert among your peers and being an expert you can train them as well.
- You’ll have a clear idea of how to choose a right bidding strategy to improve the conversion rate.
The metrics you should focus on: An alternative to using bidding strategies
Google has now made it easy by providing you with the metrics you want to focus on. So, instead of direct choosing the bidding strategy, you may just select the metric you want to focus on and Google itself will choose the right bidding strategy for you. These metrics are:
- Conversions
- Conversion value
- Clicks
- Viewable impressions
- Impression share
- Install Volume
- In-app action
Categories in Google ads bidding strategies
Automated
Target CPA
Target ROAS
Maximize clicks
Maximize conversions
Maximize conversion value
Viewable CPM
Target Impression share
Maximum CPV
Target CPM
Semi-automated
Enhanced CPC
Manual
Manual CPC
Removed Bidding strategies by Google
- Target search page location
- Target outranking share
Here, we explain all of these Google Ads Bidding Strategies in details
Automated
Target CPA
- To get as many conversions as possible for your target CPA. Here, you need to set a target CPA. Here:
- The cost of clicks doesn’t matter. As long as you’re getting clicks that convert at a profitable cost, business is going to grow.
- Google will predict which clicks will convert and how much it’ll cost that click to convert.
- Target CPA bid strategy is used for “Conversions” goals only.
- This strategy is used in Search, Display and Video campaigns only.
- The more conversion data you have in your account, the closer Google will be able to get conversions for your Target CPA. Campaigns using Target CPA need to have at least 15 conversions in the last 30 days.
- You should have at least 2-3 conversions per campaign per day.
- You don’t need to provide conversion value during configuring conversion tracking.
- Here, it is required to calculate Break-even CPA. (Break-even CPA is the cost per conversion at which there is no profit no loss. Below this break-even, you’re in profit and above it, you’re in loss). Break-even CPA= Avg. profit per conversion= Avg. order value x profit margin(%).
- You’ll be paying per click.
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Target ROAS
- Target ROAS will aim to bid based on how much return you make on your advertising money as opposed to targeting a cost per conversion.
- ROAS= Total conversion value/ Cost of Ads.
- Google will predict which clicks will convert & how much those conversions will be worth to you.
- You must have conversion values configured while setting up conversion tracking.
- Campaigns using Target ROAS need to have at least 15 conversions in the last 30 days and conversion values need to be consistent within a range of few days.
- This strategy works well with more no. of conversions. There should be more than 5 conversions daily to get best results.
- You need to determine here Break-even ROAS (Break-even ROAS is the Return on ad spend at which there is no profit no loss. Below this break-even, you’re in loss and above it, you’re in profit). Break-even ROAS= 1/Profit Margin(%).
- Based on what Google knows about the past costs of your clicks and conversion rates for each conversion action, Google will try to hit your Target ROAS.
- You’ll be paying per click.
- Present in Search, Display and Shopping campaigns only.
- Target ROAS bid strategy is used for “Conversions value” goals only.
Maximize Clicks
- If you’re looking to get as much data on site as possible without worrying about cost.
- It’s helpful in some specific objectives only like Feedback, Product improvement, website improvement, real data aggregation.
- Use it if there is a low volume keyword in your targeted locations and you want as much traffic as possible for this keyword.
- You can set a max. CPC bid limit but that’s optional. If you don’t use bid limit, Google algorithm’s smart machine learning will do all.
- Present in Search, Display and Shopping campaigns only.
- This bid strategy is used for “Conversions” goals only.
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Maximize Conversions
- One of the Google’s smart bidding strategies.
- Maximize conversions bid strategy is used for “Conversions” goals only.
- Present in Search and Display campaigns only.
- No need to set Target CPA.
- Google’s machine learning optimizes for your “conversion” goal. Because of our own experience, we can definitely recommend you to use this strategy if you have trust on smart Google algorithm.
- Google will optimize the bids to get as many conversions as possible keeping cost of clicks low.
Maximize Conversion Value
- Also a Smart Google ads bidding strategy.
- Maximize conversions bid strategy is used for “Conversion value” goals only.
- Present in Search, smart shopping and Display campaigns only.
- No need to set Target ROAS.
- Google’s machine learning optimizes for your “conversion value” goal. You should use this strategy if you have trust on smart Google algorithm.
- Google will optimize the bids to get as much return as possible on low cost of clicks.
- You need to trust on Google’s machine learning.
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Viewable CPM
- Present in Display Campaigns only.
- Used for “Viewable Impressions” goal.
- Your bid amount is the most you want to pay for every 1000 viewable impressions.
- An impression is viewable when 50% of it has been on screen for 1 sec. or more. I case of video format, it’s viewable when 50% of video has been watched for 2 sec. or more.
- You have to pay for viewable impressions only.
- It optimizes the bids, so your ads is shown in ad slots that are more likely to become viewable.
- You will provide a viewable CPM bid limit at ad group level.
Maximum CPV
- Your bid amount is the most you want to pay per view.
- You’ll be using this bidding strategy in In-stream and discovery video ads.
- In Skippable In-stream video ad, you pay when the video is watched for at least 30 sec. or the duration if shorter than 30 sec or any interaction like click on call to action overlays, click on cards etc. In Discovery video ads, you’ll pay as someone clicks on video thumbnail or title and starts watching your video.
- Used in Video campaigns only.
- Video campaigns have Target CPA and Max. Conversions bidding strategies as well but for “conversions” objective only.
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Target CPM
- Target CPM bidding strategy is used is Video campaigns only.
- Your bid amount is the avg. amount you want to pay for every 1000 impressions.
- This bidding strategy is used in Skippable In-stream, Non-skippable In-stream, Discovery ads and Bumper ads.
- Google will optimize bids to help get as many impressions as possible.
Target Impression Share
- This is a new Google Ads bidding strategy offered by Google and present in Search Campaigns only.
- The goal linked with it is “Impression share”.
- Here, you need to tell what % impression share you want to target.
- Also, you’ve to convey where you want your ads to appear: Anywhere on results page, Top of results page or Absolute top of results page.
- Have to set a max. CPC bid limit that Google will use to reach that target impression share.
2. Semi-automated
Enhanced CPC (ECPC)
- Used to maintain tight control of keyword level bids while also putting some trust in Google’s algorithm to optimize CPC for your conversions or conversion value.
- In this, Google will automatically increase or decrease your bids based on how likely they think the click is going to convert.
- Earlier it was a separate option in bidding strategies but not it’s been included in manual CPC bidding strategy
- You can use it in search, display and shopping campaigns.
- When you select manual CPC bidding strategy, it’ll give you an option to select the ECPC bidding strategy.
- In case of search and shopping campaigns, if you go with ECPC, it’ll give you 2 options. One is to optimize for conversions and another is to optimize for conversion value. But, in case of display campaign, you won’t see these 2 options and Google will optimize for conversions only.
- Conversion tracking is needed.
3. Manual
Manual CPC
- To fully maintain control over your bids in every auction.
- You pay what you’re willing to pay. That’s it.
- Google won’t bid more than your max. set bid in any circumstance.
- You set your max. CPC bid.
- Best place to start.
