Manual Bidding
With manual bidding, you control the maximum amount you're willing to pay for each click on your ads. This gives you granular control but requires constant monitoring and adjustments. A key manual bidding strategy is:
Manual CPC (Cost-Per-Click) Bidding: You set a maximum CPC bid for your ads. You pay this amount (or less) when someone clicks your ad. This strategy is best when you have a deep understanding of your keywords and customer behavior and want direct control over your bids.
Automated (Smart) Bidding
Automated bidding uses Google's machine learning to set bids in real-time, optimizing for conversions or conversion value. These strategies take into account a wide range of signals, including device, location, time of day, and remarketing lists, to predict the likelihood of a conversion.
Here are the primary Smart Bidding strategies:
- Target CPA (Cost-Per-Acquisition): This strategy aims to get you as many conversions as possible at your target CPA. You set the average amount you're willing to pay for a conversion, and Google Ads automatically adjusts your bids to achieve that target. This is best when you have a clear understanding of how much a conversion is worth to your business.
- Target ROAS (Return on Ad Spend): If you value each conversion differently, Target ROAS might be the right choice. This strategy aims to get you as much conversion value as possible at your target ROAS. You tell Google Ads the return on ad spend you'd like to achieve (e.g., 300% ROAS), and it adjusts your bids to reach that goal. This requires accurate conversion value tracking.
- Maximize Conversions: This strategy automatically sets bids to get the most conversions for your budget. It doesn't require you to set a target CPA. Google aims to spend your entire budget and get you the most conversions possible. It's ideal when you're focused on driving volume and don't have a specific CPA target in mind.
- Maximize Conversion Value: Similar to Maximize Conversions, this strategy aims to get the most conversion value for your budget. It's ideal when you value different conversions differently and want to maximize the total value you generate from your ads.
- Maximize Clicks: This is an awareness-focused strategy. This strategy automatically sets bids to get the most clicks for your budget. It can be helpful for increasing website traffic, but it doesn't necessarily guarantee conversions. This strategy is best used when you're primarily focused on driving traffic to your website and less concerned about immediate conversions.
- Enhanced CPC (ECPC): This is a semi-automated strategy that works with manual bidding. ECPC adjusts your manual bids in real-time to try to get you more conversions. It raises your bid if a click is more likely to convert and lowers your bid if a click is less likely to convert.
Portfolio Bid Strategies
Google Ads also offers portfolio bid strategies, which allow you to group multiple campaigns, ad groups, and keywords together to optimize bidding across a larger scale. This is especially useful if you have campaigns with similar goals. To create a portfolio bid strategy:
- In your Google Ads account, navigate to "Tools & Settings".
- Under "Shared Library," select "Bid strategies."
- Click the plus button to create a new bid strategy.
- Choose your desired bid strategy type (e.g., Target CPA, Target ROAS).
- Name your portfolio bid strategy.
- Set your target (e.g., target CPA or ROAS).
- Select the campaigns, ad groups, or keywords you want to include in the portfolio.
- Save your new bid strategy.
Choosing the Right Bidding Strategy
The best bidding strategy for you depends on several factors, including your business goals, your budget, the value of a conversion, and the amount of data you have available.
Here's a general guideline:
- New Campaigns: Start with Maximize Clicks to gather data or Maximize Conversions if you have conversion tracking set up.
- Established Campaigns with Conversion Data: Use Target CPA or Target ROAS to optimize for conversions or conversion value.
- Limited Budget: Consider Maximize Clicks to drive traffic or ECPC to get more conversions with manual control.
- High-Value Conversions: Implement Target ROAS to maximize the return on your ad spend.
Testing and Optimization
Regardless of the bidding strategy you choose, it's crucial to continuously test and optimize your approach. Monitor your campaign performance closely and make adjustments as needed. Google Ads provides tools and reports to help you track your results and identify areas for improvement. A/B testing different bidding strategies or target settings can help you determine what works best for your specific situation. Remember to allow sufficient time for Google's machine learning to learn and optimize your bids before making significant changes.
