Before going into various bidding strategies in Adwords. Let’s first understand the use of bidding Strategies and what they are.
Google ads have different bidding strategies. Each of them is used for different campaigns. Strategy selection depends upon the network your campaign is targeting. You can choose among clicks, Impressions, views, and Conversions which best suits your campaign.
A person has a training institute. He created search campaigns in google ads. The goal of creating a campaign is to get sales. But sales cannot happen online i.e without visiting the institute. But the aim of creating an online search campaign is to generate leads or conversions After registering they go for a demo, And finally convert into sales.
Campaign – click – lead or conversion – sale
Now, let’s have a look into different bidding strategies in Adwords
Two types of bidding Strategies
Manual Bidding strategies
- Manual cost per click
Automated Bidding strategies
- Enhanced cost per click
- Target impression share
- Target outranking share
- Target search page location
- Maximize conversion
- Maximize clicks
- Target ROAS
- Target CPA
Manual Cost Per Click
This bidding method allows us to set the maximum amount for cost per click.
Our ads will be shown until balance gets exhausted. Unlike the other bidding strategies manual cost per click gives full control over budget to ad creators.
Automated Bidding strategies
It does guesswork and sets the bid to meet or achieve the performance goal. By maximizing clicks, Target impression share, etc.
Enhanced Cost Per Click
In this bidding strategies method, Enhanced cost per click is an automated bidding strategy. Instead of setting a bid amount. We give entire control over the amount setting to google this is known as a smart bidding strategy. It will increase or decrease the bit amount based on the chance of getting lead. The Advantage of this method is that the bid always tries to be averaged out at max cost per click settings.
Target Impression Share
This bidding method is a smart bidding strategy. This method is usually selected to increase visibility and brand awareness. Google sets the bid amount depending upon the selection of the placement of an ad. They have three placement selection options: they are the absolute top of the page, on the top of the page and on anywhere on the google search results.
For example, if you choose an impression target range as 50% on the absolute top of the page. Google sets the bid and tries 50% times the total impression shown to the absolute top of the page.
Target Outranking Share
This bidding method is a portfolio bidding strategy. This strategy is used to outrank your competitors. Google shows your website on top of your competitor’s website on search results. Limitation of this is we can only share one competitor and it doesn’t show your page on top. We update it only once a day. The results of this start showing only after 7 days. It works with search campaigns only.
For example, if you choose an outrank target range of 50%. Google sets the bid and tries 50% times of total outranking share.
Target Search Page Location
This bidding method is a portfolio bidding strategy. It automates bidding across multiple campaigns to the ads on top on the page or the first place in google search results. Google automatically increases or decreases the budget based on where the ad was shown.It works with search networks only. The strategy applied only to active campaigns, ads, and keywords. This method is not compatible with dynamic ads.
This bidding strategy helps to drive more conversions for campaigns and sets the bid according to it. This uses machine learning to optimize the bids. To get maximum conversions set up and enable the conversion tracking if not it doesn’t work. And do not run a campaign with a shared budget always run with your budget. This will stay within the set budget. In case we are getting ROI or conversions with this method continue it or otherwise switch to ROAS or CPA
This strategy helps to get maximum clicks within the budget. If we do not specifically target amount google will spend the remaining money for any campaigns running using a bid strategy. Set the maximum cost per click amount if not google set amount for it.This one of the most used bidding strategies.
Target ROAS is a target return on ad spend. Google Smart bidding strategy helps you get more leads based on the amount you spend on Target return on ad spend. Setting the limit of at least 20 conversions in 45 days and defining a budget to it. This type of method is known as Target ROAS
Gets as many conversions with the target CPA we set. Lets the google Adwords use historical conversions to determine when to bid, how to bid to secure more conversion