Google Ads Bidding Strategies: The Ultimate Guide
The most crucial step is selecting the right Google Ads bidding. The type of bidding is really critical to cut down the costs of the ad and drive the maximum outcome. Even a single step can turn the tables on you and make you pay more than your fair share.
You need to know all your options otherwise it is like placing your entire paycheck on risk. Blindly choosing Google ads bidding is not what the professional would suggest.
In this post, there is an overview of all the different types of Google Ads bidding. This information will help you craft the best bidding strategy. You can also consult the experts at digital marketing training institute in Karnal as they deal with these kinds of doubts of daily and monitor the changes made by Google
If you want any guidance about to create a perfect image for facebook ads, google ads make sure you read it in our related blog.
Initially, when you start with a new Campaign on Google Ads, you will be asked what type of bidding you want to use:
Manual or Automated?
I know you might be thinking of going to use the automated. After all who the heck wants to constantly make changes when you have to run multiple campaigns? No one I Know.
But you need to keep in mind that there is much more to the Google ads bidding than you think. Yes, that’s right and even more ways to get them to use to their full potential to get maximum results.
You might be confused now about what exactly is being talked about. Don’t worry to happen to most of us.
So without further adieu let’s dig deeper into Google ads bidding options!
Google Ads Bidding: All Options Explained
Presently there are 12 options available on Google ads that you use according to your goals. These options are listed below and we will deal with them one by one.
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. Target Search page Location
8. Target outranking Share
9. CPM Bidding (Cost Per Thousand Impressions)
10. vCPM Bidding ( Cost Per Viewable Thousand Impressions )
11. CPV Bidding ( Cost Per View)
12. Target Impression Share Bidding
Option #1 Target Cost per Acquisition (CPA)
It is one of the most considerate options especially when you are optimizing for conversions. Targeting CPA bidding will help you achieve the goal to convert users at a specific acquisition cost.
Under this option, Google Ads will set the bids on a campaign based on the CPA automatically. Some of these conversions may cost more, others may cost less to even out and align the overall acquisition cost.
It might get complicated if you don’t know what your acquisition costs are. It is simply defined as the amount of money that you can afford to spend on acquiring one customer. You can enter your target CPA when selecting the bidding method and you are all set to go.
Option #2 Target Return on Ad Spend (ROAS)
This bidding strategy allows you to throw most for a loop. You might be confused! After all, who isn’t troubled by maths and especially the marketers?
But to stay on the mark you need to understand how all this is structured. With ROAS bidding you will be able to set your bids to maximum conversions based on the return you set. These numbers are calculated on percentage bases thus they are interdependent. The general formula used to calculate the target ROAS is: –
Sales expected ÷ amount spend on ads x 100% = Target ROAS
OPTION #3 Maximize Conversions
This is one of the simplest bidding strategies offered by Google Ads offers. Google will automatically set your bidding once you will finalize the maximum daily budget. For example, if you set the daily budget at $50, Google will spend it wisely and find you the most suitable options. Don’t stress if a single bid is for $ 50 Google won’t bid on it for you.
Another point to note while finalizing your bid is to be sure that you set your daily budget amount at a reasonable level. In the end, you can check the return on investment to be sure that you had profitable sales. The best part is that you don’t have to enter any details upon setup.
Option # 4 Enhanced Cost Per Click (ECPC)
The most preferred strategies are enhanced CPC of all Google Ads. In more general terms, using smart bidding is a way to go. The main element of this bid is that Google has the right to increase or decrease your bid amount. This bid will be averaged out with respect to your max cost per click settings. The search engine works accordingly, if the competition is outrageously high, Google can lower your bid to cost due to decreased chances of converting. And vice versa, if it’s easy to steal by increasing bids Google will make the call.
Option #5 Maximize clicks
The simplest of all is maximum clicks which set the automatic bidding strategy according to your maximum daily budget. The main motto of Google is to drive maximum clicks that are possible within your budget.
Option #6 Manual CPC Bidding
If you are a kind of control it all types you might actually enjoy this bidding strategy. It gives you complete control over your bidding. Manual CPC Bidding gives you more control over your bidding strategy. But, this certainly means that you need to spend more and more time. You need to be well versed to master this strategy otherwise this won’t be counted as your best bet.
It just lets you set bids for different ad group or placements on your own. It even lets you adjust budgets if certain campaigns are more profitable than others. Another feature is that you can combine Manual CPC bidding with ECPC bidding.
Option #7 Target Search Page Location
Yet another strategy that lets Google automatically adjust your bids to always show your ads based on either of these:
1. On the first page results of Google
2. At the top of the first page of Google (1-4)
You will be able to see a warning that it doesn’t guarantee placement but if you have quality scores you need not to worry.
Option # 8 Target Outranking Score
It works automatically you just have to choose a specific website or competition that you want to outrank. Target outranking is completely automated and is perfect when you are targeting your competition.
Google will increase your bids whenever an ad of your competition is running parallel to your ads. It will also demonstrate the time when there are no ads displayed by your competition this gives you a better brand awareness. One of the most effective ways to build brand awareness is to utilize he social media platform along with PPC campaigns. You can easily seek guidance of experts at Future Genius and even join social media marketing classes in Karnal to master the art of marketing.
To break it down in simple terminology firstly you need to select the domain name that you wish to outrank. Try focusing on the biggest competition who’s Ads you notice more often on Google Ad results. Target the percentage of times you want to outrank the bid on top of them. It simply means that opting for 90% would mean that you will outrank them 9 out of 10 auctions.
Option# 9 Cost Per Thousand Impressions (CPM)
This bid is solely about impressions that are generally known as CPM or Cost per Thousand Impressions. This option is mainly for the display network and Youtube campaigns so you cannot use it for the search network.
Option# 10 Cost Per Thousand Viewable Impressions (vCPM)
If you are working on building Brand awareness campaigns this is the best tactic of manual bidding. This also reserved for the Display network just like the CPM bidding.
Option# 11 Cost-per-view Bidding (CPV)
This is mainly restricted for video advertising on Google Ads and can be used on the TrueView video platform. Through CPV bidding you would pay for video views or interactions.
Interactions on these platforms could be related to any of the following
• Call to action clicks
- Overlay clicks
- Companion banners
A “view” is determined on the basis of time duration that is how long some watches your video. For this particular bid, a view is counted when someone watches your ad for 30 seconds. It is set as the default setting for bid type on TrueView advertising.
Option # 12 Target Impression Share Bidding
This is the most recent bidding strategy and was released in late 2018 by Google Ads. It helps you build brand awareness and reach a wider audience.
For example, if you select specific keyword like basketball shoes, you will ensure that your ads show up 100% of the time on SERPs just by selecting 1005 on your target impression share.
Just to add a reminder it is one of the great strategies to build brand awareness but sometimes it can go out of hand as the cost can really add up if you select 100% on your targets. So, make sure that you set a maximum limit and restrict your daily budget.
Important tip: Reserve this strategy for cheap keywords and achievable brand goals.