Best Google Ads Bidding Strategies

Google Ads is one of the most effective advertising tools businesses can utilize today. It allows you to connect with potential customers precisely when they are searching for what you have to offer. However, simply having Google Ads isn’t enough. You need to fine-tune your bidding strategy to boost your return on investment (ROI).

Getting the bidding right can feel tricky, especially if you’re new to the platform. There are numerous bidding options, making it challenging to determine which one aligns best with your business goals.

In this post, we’ll walk through the top Google Ads bidding strategies. You’ll learn about each option and how to select the one that best fits your campaigns.

1. What You Need to Know About Google Ads Bidding

Before we explore the different strategies, let’s ensure we’re on the same page regarding how Google Ads bidding works. At its core, bidding is how you tell Google how much you’re willing to pay for each click, impression, or other action on your ad. Google runs an auction for each keyword, and your bid must compete with other advertisers seeking the same traffic.

There are a few major ways to set bids for your online ads:

Cost-per-click (CPC):

CPC is the standard pick for most advertisers. You only pay when a user actually clicks your ad.

Cost-per-impression (CPM):

With CPM, you pay a fixed amount for every 1,000 times your ad is displayed, regardless of whether people interact with it or not.

Cost-per-acquisition (CPA):

CPA is all about goals. You set a target, such as making a sale or getting a sign-up, and only pay when that action occurs.

Return on Ad Spend (ROAS):

With ROAS, you tell the platform the return on ad spend (ROAS) you want. The system adjusts bids to help you hit that target return for every dollar you spend.

Each option shines depending on what you want to achieve, so let’s break down the bidding methods available in Google Ads and see how they can drive your business forward.

Also Read- How to Use Google Keyword Planner

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Manual CPC Bidding

Manual CPC is the easiest bidding method, providing hands-on control. You decide the highest amount you’re ready to pay for a click on each keyword or ad group. By setting your own maximum CPC, you can strike a balance between cost and the value you place on each click. This method is great if you want to experiment with bids and pay attention to what works best for you.

When to Use Manual CPC:

New campaigns: When launching a fresh campaign and lacking sufficient performance data, opt for manual CPC. It allows you to set a maximum price you’re comfortable with for every click, until you gather enough data to switch to more advanced bidding methods.

Campaigns with a clear ROI target: If you’re promoting something where a specific cost per click is mission-critical, manual bids keep you locked within your target costs.

For control: If you want to keep a watchful eye on every dollar, manual CPC gives you the power to tweak bids at the keyword level, allowing you to control budgets with laser-like precision.

Pros:

• Total control over every individual bid.
• Great for campaigns where every cent counts.
• You can see how each keyword is performing in real-time.

Cons:

• It can eat up your time and energy.
• You’ll need to check and adjust bids to stay competitive continually.

3. Enhanced Cost-per-click (ECPC)

Enhanced CPC is a smarter bidding option that starts with your manual bids and gives them a boost. It monitors your data and adjusts your bids in real-time, guiding your clicks toward actual conversions. ECPC is designed to eliminate the guesswork from your manual CPC setup and help you achieve better results.

When to Use ECPC

You’ll want to use ECPC when you need a balance between control and results. It fine-tunes your bids while you still set the maximum you’re willing to pay, so you don’t lose oversight. It’s a useful step-up when you’re ready to boost your conversion rates without letting the robots take all the reins.

This strategy is also great for campaigns with some conversion data, but not enough for pure automation. If you’re collecting good info but still a bit thin on volume, ECPC fills the gap. It fine-tunes bids based on the data you already have while keeping you in the driver’s seat.

Pros

• It increases the chances of conversions while still allowing you to steer the strategy.
• Bids are adjusted in real time, so you get the most value from every click.
• It blends your input with machine learning to get the best of both worlds.

Cons

• You still need to set initial bids, so it isn’t completely hands-off.
• It won’t dive in as deeply as some fully automated options, which can be less stressful.
• You’ll need to check in regularly to confirm it’s hitting your goals.

Target CPA (Cost-per-acquisition)

Target CPA is a smart bidding choice where you set a target cost for each conversion—such as a sale or a new lead—and Google works to keep bids on track to meet that target. The system leverages machine learning to predict which clicks are most likely to be cost-effective and convert.

When to Use Target CPA

Turn to Target CPA when you have clear conversion goals that matter. If your campaign’s success hinges on a specific action—such as reaching a certain number of purchases or completing a defined number of form fills—this strategy shines. It takes your target cost, weighs it against the data, and keeps your spending on the mark.

If you need cost-per-conversion, you can predict and stick to it by using Target CPA. This bidding option keeps your acquisition costs in check while you run your campaigns.

Target CPA is a win for high-conversion setups. If your model relies on bulk conversions, such as online stores, this strategy can help you achieve the best return on your investment.

Pros:

• Fully hands-off, so you don’t have to tweak bids all the time.
• You can set a target cost for each conversion and get a steady ROI.
• The machine-learning system optimizes bids without needing your constant input.

Cons:

• It struggles if your conversion volume is low.
• The machine-learning system requires time to collect sufficient data before it can deliver accurate results.
• Accurate conversion tracking is a must for it to work.

Target ROAS (Return on Ad Spend)

Target ROAS is a bidding strategy where you set your desired return on ad spend. Google then adjusts your bids to try to meet that goal. This is a great fit if you want to focus on profit rather than just the price of each conversion.

When to Use Target ROAS:

If you run an online store and your main goal is revenue—not just leads—Target ROAS is your best choice. This strategy aims to boost the most profitable conversions.

When to Use Target ROAS

If you understand the return you want from your ads, Target ROAS is the way to go. The feature takes the return you expect and automatically adjusts bids to help you meet that number. This way, you can grow your ad spend confidently and avoid overspending.

If your main goal is to grow revenue, Target ROAS is your friend. It makes sure that, while you’re increasing sales, you don’t end up with lower-quality leads that hurt your results.

Good Points:

• Boosts revenue while keeping the ROAS you want in check.
• Works completely independently, utilizing advanced machine learning.
• Ideal for companies with a clear revenue target.

Things to Watch:

• It requires a substantial amount of conversion data to get started.
• The system takes time to adjust bids and find the sweet spot.
• It’s not for businesses that don’t have a clear or regular ROAS.

Maximize Conversions

Maximize Conversions is all about volume: Google aims to help you achieve as many conversions as possible while staying within the budget you set. It analyzes past performance and utilizes intelligent algorithms to determine the optimal bid at every auction.

When to Use Maximize Conversions:

• Use this when you have a set budget and want to achieve the highest number of conversions possible. It’s a solid fit for advertisers who prioritize volume over cost per conversion.

Consider Maximize Conversions for your large campaigns packed with keywords. This smart bidding approach shines when your primary goal is to maximize conversions, rather than focusing on each individual keyword.

Pros

• Automated bidding reduces the time spent fine-tuning each individual bid.
• The algorithm focuses on achieving the highest total of conversions.
• Perfect for advertisers with deep pockets wanting to make a big splash.

Cons

• Costs per conversion could increase if settings aren’t tuned precisely.
• Profit margins might take a hit, so it may not be suitable for every type of business.

Maximize Clicks

Next up is Maximize Clicks. This fully automatic tactic enables Google to set bids to capture the highest number of clicks your budget can afford. The goal is traffic, not conversions.

When to Use Maximize Clicks

• Use it when your main aim is to increase website traffic or boost brand awareness.
• Great for campaigns where lead generation or brand exposure is more important than immediate sales.

Pros

• Set it and forget it. There’s no fuss with manual bid changes.
• Excellent for driving a lot of visitors to your site.

When to Use this Approach

This bidding style is well-suited for campaigns that aim to build awareness or gently nurture leads.

Drawbacks

It might lead to higher cost-per-click rates if you’re not also focused on driving actual sales.

It doesn’t prioritize return on investment or push for immediate buying actions.

Also Read- Google Algorithm Updates

Conclusion: Picking the Right Bidding Plan for Your Goals

Google Ads offers several bidding options to suit various businesses and goals. The secret to winning is knowing what you want and selecting the bidding style that best matches it.

• Use Manual CPC for total control over every single bid.
• Choose Enhanced CPC if you prefer a hands-on approach but want helpful automatic adjustments.
• Go for Target CPA when locking in a steady cost for each new lead or sale is the priority.
• Opt for Target ROAS if you run an e-commerce store and your primary goal is to increase revenue.
• Switch to Maximize Conversions to capture as many actions as your budget allows.
• Use Maximize Clicks to drive more visitors or to boost overall brand visibility.

Regardless of the style you choose, keep a close eye on your campaigns. Adjust based on the numbers, keep testing, and fine-tune your method over time.

A well-crafted bidding plan can transform your Google Ads into a powerful tool for your business. Use it effectively, and you’ll see significant results and a boost in your return on investment. A few smart moves can push your company ahead of the competition.