There are so many different ways to use Google Ads and so many different settings that you can use with Google Ads. For most advertisers, there is a lot to take in. It’s not just the one keyword bid strategy that most new advertisers focus on. There are so many other details and configurations that make all the difference between an average and an amazing campaign.
READ MORE ON;Difference between Local Service Ads vs Google Ads
With many advertisers just starting out with Google Ads, it’s important to note that there are a lot of factors that go into a successful campaign as opposed to just putting in your budget, targeting audience, and bidding on a few keywords. With this article, we’ll walk you through everything you ever wanted to know about the various bidding strategies available for Google Ads Bidding Strategy but were afraid to ask for fear of being labelled a noob.
What is a Google Ads Bidding Strategy?
When setting up a Google Ads Bidding Strategy, you will be given the opportunity to select a bidding strategy for your ads. This setting allows advertisers to manually determine how they want to set their bids versus Google’s automatic bidding methods.
With Google Ads’ manual bidding, you can select a bidding strategy that best aligns with the kind of results you want to achieve. Bidding strategies will help you to maximize your profits while achieving your goals. Google’s automatic bidding strategies, on the other hand, allow Google to determine how to best set your bids based on your selected goal, the average value of your clicks, and the competition for your keywords.
Manual bidding is when you set your own budgets for your keywords, regardless of the average value of your clicks. This is also known as “ash bidding” as it’s not advised to do so as you will be missing out on a lot of clicks and conversions that could have otherwise been yours.
Is is best for advertisers that only have a few keywords and/or who have a very good understanding of the value of their business, the average value of their clicks, and their competition. If you’re an experienced PPC advertiser or you’re managing a small AdWords account, manual bidding is the best option.
You’ll be able to go into more detail about your keywords and ads, set your own daily budgets, and bid on a keyword-by-keyword basis. The downfall is that you’ll need to monitor your account closely to keep up with changes and make necessary adjustments.
Google’s Automatic Bidding Strategies
Google’s automatic bidding strategies are designed to help you maximize your ROI while keeping your costs as low as possible. In fact, Google’s default bidding strategy is called automatic bidding, but it’s important to note that this is not recommended for most advertisers.
Automatic bidding allows Google to determine the best way to set your bids based on your average value per click, your estimated value, and the competition for your keywords. Google’s automatic bidding strategies include Target CPA, Maximize Conversions, and Enhanced CPC (ECPC).
It’s important to note, however, that these strategies aren’t perfect and that they’re not necessarily going to help you get the most value from your AdWords spending.
Enhanced CPC (ECPC) – Google’s Automated Bid Strategy
The ECPC bidding strategy is a highly intuitive automated bidding method that uses your historical data to predict your future performance. The more data you have, the better this strategy will work for you as it’s essentially an algorithm that Google uses to determine your best bid for a given keyword.
The ECPC bidding strategy is best for new advertisers who haven’t yet established a conversion rate or have a limited amount of data to work with. It’s important to note that while the ECPC bidding strategy is great for newer advertisers, it may not be the best choice when you’re trying to reach a specific goal, like increasing sales.
When you first start out with Google Ads Bidding Strategy, you’ll want to leave the decision-making up to Google, but once you have more data, you’ll want to consider switching over to a different bidding strategy. You can also try a combination of strategies.
Bid Only on Spend Targeting Strategies
Bid only on spend bidding strategies are ideal for advertisers who are new to PPC and are looking for a quick start.
The spend bidding strategy is best for advertisers who are new to Google Ads and want to get quick results without having to spend a lot of time in their account. You’ll need to make sure you have a way to track your spending, though, and that you use Google Flights to keep an eye on your costs.
If you’re just starting out with Google Ads and you don’t have a lot of data to work with, this is a great strategy to use. The only downside is that you’re not bidding on keywords that are valuable to your business.
Bid to Stay in Top Positions (BTS)
The BTS bidding strategy is a great option for businesses that want to increase visibility and drive more conversions, but don’t want to spend a lot of money. The BTS bidding strategy is basically a manual strategy that allows you to set a bid amount on each keyword you want to appear in the top positions.
You’ll want to make sure you have enough money in your account to cover the amount you’re bidding on each keyword, though, as Google will not pull money from anywhere else in your account. This bidding strategy is best for advertisers who have limited funds but want to reach their desired audience.
It’s also great for those who don’t want to spend a lot of time monitoring and adjusting their bids as you won’t need to keep as close an eye on your account.
Maximize Ad Words ROI Strategies for Google Ads
The Maximize Ad Words ROI bidding strategy is essentially the manual bidding strategy but with a few extras thrown in. Essentially, Google will set your bids for keywords based on a percentage of your average conversion rate. You can enter a percentage, but it must be above 90%.
The biggest advantage to this bidding strategy is that you can set a maximum budget for your entire account. This is great for those who don’t want to spend a lot of time in their AdWords account. You can set a daily or lifetime budget and let Google do the rest.
This strategy works best for advertisers with a good amount of data as it allows Google to make more accurate predictions. It’s also a great option for those who don’t want to spend a lot of time in their account but still want to maximize their ROI.
Utilizing Other Bidding Strategies with Maximization
You can combine all of the above bidding strategies to really kick things up a notch. Basically, you can select one of the above bidding strategies and then switch to the Maximize Ad Words ROI strategy. You can then select the bid strategy that you want to use for each of the above bidding strategies.
For example, you can use the Target CPA bidding strategy for keywords with a high bid of $1. You can then select the Maximize Ad Words ROI bidding strategy for keywords with a low bid of $0.05. You can then select the other bidding strategies you want to use, such as the Bid to Stay in Top Positions strategy, the Spend Only on Spend strategy, the ECPC strategy, or a combination of strategies.
The Google Ads bidding strategies are there to help you get the most conversion for your money. Depending on your goals and how much time you have to spend on your ads, you can select the ones that work best for you. We hope that you’ve enjoyed this article and that you’ve come away with a better understanding of the many bidding strategies available for Google Ads. We hope that this information helps you to maximize your ROI and profit from Google Ads.
1-Understanding Google Ads Metrics for SME
2-How SEO is changing journalism