Google Ads Bidding Strategies Explained [2023]

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Google Ads Bid Strategy Explained by Zabi Niazi - SEM & SEO Consultant Bay Area San Jose, CA.gif

Google Ads Bidding Strategies

Selecting the right Google Ads bidding strategy is key to a campaign success. Google Ads offers multiple bidding strategies tailored to specific campaign needs.

You might want to ask yourself – what is the goal of my campaign? It could be to increase clicks, impressions or conversions.

Different campaign types require different bidding strategies.

For example, search campaigns; you might want to use CPA whereas in Display you might want to use maximize conversions.

Goal type, budget, & targeting determine bid strategy one should use.

In this blog post, I am going to explain current Google Ads bidding strategies, how to use and the Goals type to use with.

The key to success is determinig a strategy based on Campaign Goals

Google Ads Bidding Strategy & Goal Type

Determine a bid strategy based on your SEM goals. Having the right Google Ads bidding strategy will help you win more auctions to improve your chances of conversions.

Each of Google Ads’ bidding strategies has weaknesses, advantages, and recommended applications.

Bidding Strategy & Goal Type
Bidding StrategyGoal Type
Target ROAS (Return on Ad Spend)
Conversions. Leads & Sales
Target CPA
Maximize Conversions
Enhanced CPC
Maximize Clicks
Clicks
Manual CPC
Maximum CPV
Views, Engagement
Cost Per Engagement
Target Impression Share
Impressions
Target Search Page Location
Target Outranking Share
Viewable CPM (vCPM)

What is Manual CPC

Manual CPC provides more control overspend. It lets you set your own maximum cost-per-click (CPC) for your ads, whereas, in automated bidding strategy Google sets the bid for you.

You can set a maximum CPC bid for your entire ad-group.

You can also set separate bids for individual keywords or placements.

Google Ads Manual CPC Bid Strategy - ZabiNiazi.com - Bid Strategies Explained

Automated Bidding Strategies

Automated bidding takes the heavy lifting and guesswork out of setting bids to meet your performance goals. Each type of Automated bidding strategy is designed to help you achieve a specific goal for your business.

Automated bid strategies Explained
Bid Strategy & What it Does

Bid Strategy

Goal

What it does

Manual CPC

Set your own maximum CPC for keywordsYou “yourself” need to define bids at keyword or ad group level that help you achieve your business goals.

Target Search Page Location

Show your ad on the top of the page or on the first page of Google Search resultsGoogle automatically adjusts your bids several times a day to get you ad placements either on the first page of search results or at the top of the search page

Target Outranking Share

Outrank ads from another domainGoogle automatically updates your bids once a day to outrank another specifically chosen domain ads

Maximize Clicks

Get as many clicks as possible within your budgetGoogle Automatically adjusts your bids several times a day to get you most traffic within your budget.

Enhanced CPC

Takes’s Google predictions regarding conversion intent into account when using manual CPC or maximize clicks biding.Automatically adjusts your manual bids for clicks that seem more or less likely to lead to a sale or conversion on your website

Maximize Conversions

Get the most conversions for your campaign while spending your budget.Google uses machine learning to automatically tailor bids for each search auction to bring you conversions at your pre-defined target cost per acquisition.

Target CPA

Get as many conversions as possible at the target CPA you setUsing historical information about your campaign and evaluating the contextual signals present at auction-time, Maximize Conversions bidding automatically finds an optimal CPC bid for your ad each time its eligible to appear.

Target ROAS

Get more conversion value or revenue at the target return on ad spend (ROAS) you set.Google uses machine learning to automatically adjust bids at auction time to set the most optimal bid for each search and bring you revenue at the target return on ad spend that you’ve pre-defined.
Changes in Volume Conversions Google Ads Bidding Strategies google ads bidding strategies Google Ads Bidding Strategies Explained [2023]

What is Google Ads Maximize Conversion Value Smart Bidding Strategy

Introduced during Google Marketing Live 2019 – Maximize Conversion Value is the newest smart bidding strategy in Google Ads line up. Maximize is available starting August 21st, 2019.

Maximize Conversion Value aims to optimize the greatest conversion value within the budget.

Maximize conversion value uses historical campaign data and the searcher’s contextual signals to determine the optimal CPC bid at auction time.

Best works with transaction-specific values or have set conversion values for the conversion types you’re optimizing for.

Maximize Conversion Value Smart Bidding Strategy | Google Ads

Seasonality Adjustments for Smart Bidding

Smart Bidding strategies like Target CPA and Target ROAS use machine learning to automatically set bids at auction time to help improve the performance of your Google Ads campaigns.

 

Though these strategies already take into consideration seasonality. Google knows there are key moments for businesses to anticipate significant shifts in conversion rate, like during sales or when a new product launches.

To provide businesses more control in such rate situations, you can no apply seasonality adjusts for search and display marketing campaigns. Please see the screenshot example.

Google Ads - Seasonality Adjustments for Smart Bidding

 

Seasonality Adjustments for Smart Bidding

“Let’s say you’re planning a flash sale for the weekend. Historically, you’ve seen a 50% increase in conversion rates when you’ve run a similar sale. With seasonality adjustments, you can apply a predicted conversion rate adjustment and Smart Bidding will consider that adjustment for the date range selected, while trying to hit your target CPA.”

FAQ - Bidding Strategy

What does automated bidding use to set the right bid for every auction?

Automated or Smart bidding uses historical data to set the right bid for every auction. I recommend starting with the “Maximize Conversion” smart bidding strategy and once over 15 conversions recorded in the past 30 days, then migrating to setting a Target CPA Bidding strategy.

Which type of Automated Bidding Strategy is Enhanced Cost-per-Click (eCpc)?​

Enhanced CPC automatically adjusts your bids for clicks that are likely to convert. Another way for Google to increase bids (Max 30%), if it thinks you are bidding too low for a well-performing ad and likely to get a conversion.

Which type of automated bidding strategy is Target Return on Ad Spend (ROAS)?

Target ROAS is Google Ads Smart Bidding strategy that helps you get more conversion value or revenue at the target return-on-ad spend (ROAS) you set.

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