The 10 Google Ads Bidding Strategies

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There are currently 10 main bidding strategies in Google Ads to consider, and Google is always working on improvements. Since the best Google Ads strategy for you depends on your budget and goals, it’s imperative that you get familiar with each strategy, what it offers, and how it may or may not be helpful.

Here’s a list of the strategies that we will summarize below:

  1. Target CPA (Cost Per Acquisition)
  2. Target ROAS (Return On Ad Spend)
  3. Maximize Conversions
  4. Enhanced Cost Per Click (ECPC)
  5. Maximize Clicks
  6. Manual CPC Bidding
  7. tCPM Bidding (Cost Per Thousand Impressions)
  8. vCPM Bidding (Cost Per Viewable Thousand Impressions)
  9. CPV Bidding (Cost Per View)
  10. Target Impression Share Bidding

GOOGLE ADS BIDDING STRATEGY : TARGET CPA

Target CPA (Cost Per Action) is one of the most effective Google bidding strategies for driving conversions at an efficient cost. CPA is the amount of money you’re willing and able to spend on a single conversion. In this scenario, Google’s algorithm is setting your bids to maximize conversion volume within your set target CPA.

Target CPA The focus of this fully automated strategy is to generate conversions at, or near, your specified target cost per action.

How Target CPA works: This strategy lets advertisers set a target cost per action, which Google then uses to adjust bids to generate as many conversions as possible within the target

cost per action. Although individual conversions may have CPAs higher or lower than your target, Google tries to balance it out over time to achieve your Target CPA.

As an advertiser, you’re able to set bid minimums and maximums so Google doesn’t go out of your bounds. Keep in mind that this is only for portfolio use; bid caps aren’t available for individual campaigns.

Here’s how our alpha/beta strategy has driven more effective target CPA bidding.

  • WHEN TO USE TARGET CPA:-

Google Ads recommends that your campaign receives at least 30 conversions in the last 30 days in order for target CPA to perform optimally. If you’d like to try target CPA but your campaign doesn’t have this level of conversion volume, you can use portfolio bidding to apply the tCPA

bidding strategy across several campaigns.

GOOGLE ADS BIDDING STRATEGY : TARGET ROAS (RETURN ON AD SPEND)

Target ROAS as a strategy is quite similar to Target CPA, but instead of focusing on cost per acquisition, the focus is on return on ad spend (ROAS). With this strategy, Google Ads uses your auction-time signals to predict future conversions and conversion value when entering auctions.

Target roas The algorithm then maximizes conversion value while attempting to stay within the ROAS target you’ve set.

How Target ROAS works: Google Ads uses the return you’re looking for from your ad spend to set bids in a way that maximizes conversion value. Although it takes a little math to figure out, it’s pretty simple to do and very important to know.

The Target ROAS calculation looks like this:

(Sales ÷ ad spend) x 100

If your campaign has sufficient historical data, Google will recommend a ROAS target when you are implementing the bid strategy in your campaign settings.

  • WHEN TO USE TARGET ROAS:-

Similarly to Target CPA, Target ROAS is best used as an experimental campaign first. One note with Target ROAS is that you will need more data than for Target CPA; Google recommends 50 conversions in the last 30 days for tROAS, opposed to only 30 conversions for tCPA. Therefore, this will likely only be an option for larger budget campaigns. You also must be tracking revenue or value of some sort for your conversions in order for this to work.

GOOGLE ADS BIDDING STRATEGIES : MAXIMIZE CONVERSIONS

Maximize Conversions is a smart, fully-automated bidding strategy, meaning that Google employs machine learning to optimize conversions and their value across your entire campaign. Google factors in auction-time signals like device location, operation system, time of day, and more to maximize conversions while spending your entire daily budget.

Maximize conversions the goal of the Maximize Conversions bid strategy is to get as many conversions as possible from your daily budget.

How Maximize Conversions works: This strategy is simple because it’s fairly hands-off. You tell Google how much you want to spend each day, and the algorithm takes it from there to get you the most conversions for your money. Remember, Google will always try to use the full daily budget, so make sure you don’t enter a shared budget.

WHEN TO USE MAXIMIZE CONVERSIONS:-

While it’s optimal that you at least have some conversion history in place, this isn’t necessarily required. This Google Ads bidding strategy could increase spend significantly if your average spend is less than your average daily budget. This is because maximize conversions will try to spend your entire daily budget in pursuit of more possible conversions.

GOOGLE ADS BIDDING STRATEGIES : ENHANCED COST PER CLICK (ECPC)

Very similar to manual bidding, Enhanced Cost Per Click (ECPC) requires you to manually set the keyword bid but allows Google’s algorithm to increase (or decrease) your bid based on the probability that a query will lead to a conversion.enhanced cost per click

How Enhanced Cost Per Click works: Based on the likelihood that a click will lead to a conversion, Google Ads can increase or decrease the bid for the keyword you set. Previously, Google allowed for a 30% adjustment on either side, but that cap has since been removed.

Still, Google will work to keep the average CPC below the maximum that you set. Done properly, ECPC can lead to increases in CVR – while allowing you to maintain some control over your bids.

WHEN TO USE ENHANCED COST PER CLICK:-

Enhanced CPC is a good step-up from Manual CPC for advertisers that want to get started with an automated bid strategy while still maintaining some level of control. You don’t need large amounts of data like with target CPA, so small and mid-size advertisers can safely leverage this strategy across any type of campaign.

However, the lack of a spending cap in the algorithm leaves space for bids and CPCs to become so high that they are no longer profitable. This strategy is a good way to test out automation, but keep an eye on CVR to make sure the strategy is working.

GOOGLE ADS BIDDING STRATEGY : MAXIMIZE CLICKS

Maximize Clicks is quite similar to Maximize Conversions; it’s just focused on clicks instead of conversions. These types of campaign strategies are great for driving more traffic to your site for branding and audience-building, or if you don’t have conversion tracking in place.

Maximize Clicks sets your bids to get the maximum number of clicks from your defined budget.maximize clicks

How Maximize Clicks works: Many say this is the simplest way to increase clicks because Google Ads does the majority of the work. Google Ads sets your bids for you to get as many clicks as you can while spending as much of your daily budget as possible. You can set CPC limits to help keep CPCs down as Google spends your daily budget.

WHEN TO USE MAXIMIZE CLICKS:-

Use maximize clicks when the goal of your campaign is to drive traffic to your website. If you

don’t have conversion tracking in place, this is a good bidding strategy to use.

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