Google Ads Bidding Strategies: The Step-by-Step Guide

Google Ads bidding strategies are a crucial aspect of any successful advertising campaign. They determine how much you’re willing to pay for each ad click or impression, and they can have a significant impact on your results.

This guide will provide you with a comprehensive overview of Google Ads bidding strategies, including the different types available, how to choose the right strategy for your campaign, and how to set up and manage your bids effectively.

Types Of Bidding Strategies in Google Ads

Here are the varieties of Google Ads Bidding Strategies that can help you achieve your advertising goals. The best bidding strategy for you will depend on your specific goals, budget, and campaign settings.

1. Manual CPC Bidding

With manual CPC bidding, you set the maximum amount you are willing to pay for each click on your ad. This gives you the most control over your bids, but it can also be time-consuming to manage.

When to Use Manual CPC:

• When you want to test new campaigns or ad groups.
• For smaller budgets where you want precise control.

Pros:

• Full control over your bids.
• Ideal for campaigns in testing stages.

Cons:

• Time-consuming, as you must constantly adjust bids.
• Lacks automation and optimization for conversions.

2. Maximize Clicks

Maximize Clicks is an automated bidding strategy that aims to get you the most clicks possible within your budget. This is a good option if you are on a tight budget or are new to Google Ads.

When to Use Maximize Clicks:

• For brand awareness campaigns.
• When your goal is increasing site traffic.

Pros:

• Fully automated bidding strategy.
• Ideal for driving high traffic volume.

Cons:

• No direct focus on conversion optimization.
• May lead to irrelevant clicks if targeting isn’t precise.

3. Target Search Page Location

Target Search Page Location is an automated bidding strategy that aims to show your ad on a specific part of the search results page (SERP), such as the top of the page or the first page. This can be a good option if you are looking to increase your brand visibility.

When to Use Target Search Page Location:

• If your goal is to ensure visibility at the top or anywhere on the first page of search results.
• Ideal for brand awareness or dominating specific keywords.

Pros:

• Increased visibility for high-priority keywords.
• Automated adjustments to keep ads in desired positions.
• Focus on ranking for key search terms without manual bidding.

Cons:

• May lead to higher costs, especially for competitive keywords.
• Less control over bid amounts compared to manual bidding strategies.

4. Target Outranking Share

Target Outeanking Share is an automated bidding strategy that aims to show your ad above a specific competitor’s ad. This can be a good option if you are targeting specific competitors.

5. Target CPA

Target CPA is an automated bidding strategy that aims to get you as many conversions as possible while staying within a specific cost-per-acquisition (CPA) goal. This is a good option if you have a clear understanding of your CPA goal.

When to Use Target CPA:

• When you want to control costs while driving conversions.
• For lead generation and sales-focused campaigns.

Pros:

• Automatically optimized for conversion costs.
• Reduces the need for constant bid adjustments.

Cons:

• Requires sufficient conversion data to work effectively.
• May result in fewer impressions if the CPA is set too low.

6. Enhanced CPC (eCPC)

Enhanced CPC (eCPC) is an automated bidding strategy that is similar to Target CPA, but it also takes into account other factors, such as the likelihood that a click will lead to a conversion. This can be a good option if you want to maximize your conversions while still having some control over your bids.

When to Use Enhanced CPC:

• If you’re already running manual bids and want a bit of automation.
• When your primary goal is increasing conversions.

Pros:

• Combines manual control with AI-powered adjustments.
• Focuses on conversion optimization.

Cons:

• Limited automation compared to full smart bidding.
• Can increase costs if not monitored closely.

7. Target ROAS

Target ROAS is an automated bidding strategy that aims to achieve a specific return on ad spend (ROAS). This is a good option if you have a clear understanding of your ROAS goal.

When to Use Target ROAS:

• For eCommerce businesses that want to maximize revenue.
• When you have a clear idea of the profitability of each conversion.

Pros:

• Optimized for maximum profitability.
• Best suited for sales-driven campaigns.

Cons:

• Requires robust conversion tracking.
• Might not work well for low-volume campaigns.

8. Maximize Conversions

Maximize Conversions is an automated bidding strategy that aims to get you as many conversions as possible. This is a good option if you are not concerned about your CPA or ROAS.

When to Use Maximize Conversions:

• When your primary goal is getting more leads or sales.
• For campaigns with flexible budgets.

Pros:

• Fully automated and conversion-focused.
• Helps scale conversion volume quickly.

Cons:

• Can result in high costs if not monitored.
• Needs a sufficient budget to be effective.

9. Viewable CPM (vCPM)

Viewable CPM is a bidding strategy that focuses on impressions that are actually seen by users. With vCPM, you set the maximum amount you are willing to pay for every 1,000 viewable ad impressions on the Google Display Network. This ensures that you are only paying for impressions that have the potential to drive results.

10. Maximize conversion value

Maximize conversion value is an automated bidding strategy that aims to maximize the total value of conversions for a given budget. This strategy uses machine learning to optimize bids based on a variety of factors, including the likelihood that a click will lead to a high-value conversion. This is a good option for advertisers who are focused on generating leads, sales, or other high-value actions.

When to Use Maximize Conversion Value:

• For businesses focused on driving high-value conversions.
• Best for eCommerce and high-ticket products.

Pros:

• Optimizes for revenue, not just conversions.
• Ideal for profit-driven campaigns.

Cons:

• May not be effective for businesses with low-value conversions.
• Requires accurate conversion tracking and value data.

In addition to these Google Ads bidding strategies, offers a number of other options, such as Smart Bidding and Portfolio Bidding. These strategies use machine learning to optimize your bids for you, and they can be a good option if you want to save time and effort.

Choosing the Right Google Ads Bidding Strategies for Your Campaign

Let’s break down a few common goals on Google Ads and the top bidding tactics you can use for each.

Generate website traffic

Target CPClicks (CPC) is a good option for this goal because it allows you to focus on getting as many clicks as possible for your budget. 

You can also use Maximize Clicks, but be aware that this strategy may not be as effective as Target CPC if you have a tight budget.

Increase brand awareness

Target Search Page Location (SPL) is a good option for this goal because it allows you to show your ad on a specific part of the search results page (SERP), such as the top of the page or the first page. This can help increase your brand visibility. 

You can also use Maximize Clicks or Enhanced CPC (eCPC) to increase your overall ad impressions.

Generate leads

Target CPA (cost-per-acquisition) is a good option for this goal because it allows you to focus on getting as many leads as possible for your budget. 

You can also use Max Conversions or eCPC to increase your overall lead volume.

Generate sales

Target ROAS (return on ad spend) is a good option for this goal because it allows you to focus on getting as much sales revenue as possible for your advertising budget. 

You can also use Maximize Conversions or eCPC to increase your overall sales volume.

When to Use Manual Bidding vs. Smart Bidding

Deciding between manual bidding and smart bidding in Google Ads depends on your specific advertising goals, experience level, and campaign settings. Here’s a breakdown of when to use each approach:

Use manual bidding when:

You have a strong understanding of your campaign goals and budget. Manual bidding gives you complete control over your bids, allowing you to set specific maximum amounts you’re willing to pay for clicks, conversions, or other actions. 

This is ideal if you have a clear understanding of your target audience, keyword values, and desired outcomes.

You want to closely manage your bids and make granular adjustments. With manual bidding, you can make frequent adjustments to your bids based on performance data and market fluctuations. 

This allows you to optimize your bids for specific keywords, devices, locations, and times of day.

You have a limited budget and need to control costs carefully. Manual bidding gives you more control over your spending, ensuring that you don’t exceed your budget limits. This is particularly important for small businesses or campaigns with tight budgets.

Use smart bidding when:

You want to automate bid optimization and save time. Smart bidding utilizes machine learning algorithms to analyze vast amounts of data and make real-time bid adjustments based on factors like user intent, device, location, and time of day. This can save you time and effort in managing bids manually.

You are new to Google Ads or don’t have extensive PPC experience. Smart bidding can help you get started with bidding without requiring in-depth knowledge of auction dynamics and keyword analysis. It can be a good starting point for novice advertisers.

You have a large volume of data and want to optimize for specific goals. Smart bidding algorithms can process large amounts of data and optimize bids for specific goals, such as maximizing conversions, achieving target CPAs, or generating a desired return on ad spend (ROAS).

Smart bidding is a good choice for advertisers who want to automate their bidding process and take advantage of machine learning to optimize their campaigns. 

However, manual bidding can still be beneficial for advertisers who have a strong understanding of their campaigns and want to maintain granular control over their bids.

Ultimately, the best approach depends on your specific needs and preferences. Consider experimenting with both manual and smart bidding to determine which one works best for your campaigns.

Best Practices for Choosing a Google Ads Bidding Strategies

Choosing the right bidding strategy for your Google Ads campaigns is crucial for achieving your advertising goals and maximizing your return on investment (ROI). 

Here are some Best Practices to consider when selecting a Google Ads Bidding Strategies:

Understand your advertising goals: 

Clearly define your primary advertising goals, whether it’s generating website traffic, increasing brand awareness, generating leads, or driving sales. Your goals will guide you towards the most suitable bidding strategy.

Consider your budget and experience level: 

If you have a limited budget, manual bidding may provide more control over your spending. For larger budgets or advertisers with less PPC experience, smart bidding can automate bid optimization and save time.

Assess your campaign settings: 

Determine the type of network you’re targeting (Search, Display, or both) and the granularity of your bidding structure (ad group, keyword, or placement level). This will influence your choice of bidding strategy.

Evaluate your data availability: 

Smart bidding relies on historical data to make informed decisions. If you have limited conversion data, manual bidding may be more suitable until you accumulate sufficient data for effective optimization.

Use Google Ads experiments: 

Google Ads provides a built-in experiment feature that allows you to test different bidding strategies against each other. This can help you determine which strategy performs best for your specific campaigns.

Monitor performance regularly: 

Regularly review your campaign performance metrics, such as impressions, clicks, conversions, and cost-per-acquisition (CPA) or return on ad spend (ROAS). Make adjustments to your bidding strategy as needed to optimize results.

Conclusion

When choosing a bidding strategy for your Google Ads campaigns, it is important to consider your advertising goals, budget, experience level, and campaign settings.

There are a variety of bidding strategies available, including manual CPC bidding, Target Search Page Location, Target CPA, Target ROAS, and Maximize Conversions. The best google ads bidding strategies for you will depend on your specific needs.