How to Choose the Best Bidding Strategy for Google Ads
How to Choose the Best Bidding Strategy for Google Ads
Mastering Google Ads bid strategies is akin to navigating a labyrinth of options, each with its unique set of challenges and rewards. Our journey today delves into this complexity, offering insights and practical advice for businesses looking to optimize their online advertising efforts.
The Essence of Bid Strategies in Google Ads
At its core, Google Ads operates as an online auction, where advertisers vie for prime digital real estate. This competition isn’t as straightforward as placing a single bid; it involves a selection from a diverse array of strategies. Crucially, no strategy offers a magic solution—a “set it and forget it” approach simply doesn’t cut it. Success in Google Ads requires a nuanced understanding of these strategies and a willingness to adapt.
Maximizing Clicks: A Gateway to Traffic
One foundational strategy is Maximizing Clicks, an automated approach designed to drive traffic. This strategy is particularly useful at the onset of a campaign, helping advertisers accumulate valuable data by maximizing site visits. However, after gathering sufficient conversion data (around 25 to 50 conversion events), it’s advisable to pivot towards more conversion-focused strategies. A pro tip for those employing Maximizing Clicks: setting a maximum cost-per-click bid limit can help control expenses without stifling traffic potential.
The Role of Manual CPC and Enhanced CPC
The landscape of bid strategies has evolved, with Manual CPC—a once gold-standard approach that involves setting bids at the keyword level—losing its sheen. Even enhanced CPC seems outdated as it often doesn’t give you the desired action you are after.
Target Impression Share for Visibility
Visibility is paramount in the crowded digital space, and Target Impression Share aims to secure prime positioning for ads. This automated strategy focuses on achieving a specified share of impressions, enabling advertisers to dominate search results. Yet, this pursuit of visibility must be balanced with cost considerations and overall campaign goals. This is a great option when you have a larger budget and you want to ensure that you are showing at least 80% of the time someone does search for the terms you are going after.
Exploring CPM for Display Network Success
Within Google’s Display Network, Cost Per Thousand Impressions (CPM) bidding focuses on visibility, charging advertisers based on the number of times their ad appears. This strategy is best suited for campaigns aimed at enhancing brand awareness across a wide audience.
Conversion-Focused Strategies: The Holy Grail
The ultimate goal of most advertisers is to drive conversions, making strategies like Target CPA (Cost Per Acquisition) and Target ROAS (Return On Ad Spend) highly coveted. These sophisticated options require a solid foundation of conversion data to be effective, aiming to optimize ad spending for the highest possible return. Target CPA focuses on acquiring conversions at a specified cost, while Target ROAS seeks to maximize revenue relative to ad spend.
The important thing to remember here is that if you don’t have enough conversion data yet then going after this setting will not yield the best results. It’s best to ensure that you have enough data. You can lower the bar on what is defined as a conversion such as time on a page or scroll behavior to give Google better data to optimize towards if you can’t quite get the full conversions.
Maximizing Conversion Value
For advertisers with robust conversion tracking, Maximizing Conversions and Maximizing Conversion Value offer paths to optimize ad spend. The trick here though to choose this one you likely need to have an eCommerce store as maximizing conversion value is based on a monetary value. You could assign value to conversions but that would fall short as well if all conversions had the same value.
Navigating the Complexity of Google Ads Bid Strategies
Embarking on a Google Ads campaign is no simple feat. Each bid strategy presents its unique advantages and challenges, demanding a strategic approach and ongoing optimization. From maximizing initial traffic with Maximizing Clicks to refining campaigns for maximum revenue with Target ROAS, the key to success lies in a deep understanding of these strategies and a commitment to continuous improvement.
Google Ads bid strategies offer a rich toolkit for advertisers aiming to achieve specific goals. Whether seeking visibility, traffic, or conversions, the right strategy can significantly enhance campaign performance. However, it’s crucial to remember that these strategies are not set-and-forget solutions but require diligent management and adaptation based on performance data.
One final thought is that while these list these strategies for the campaign when select them by themselves. A more advanced type of campaign called Google Performance Max might be the better option. This type of campaign will have its own set of similar but different Google budding strategies available.
Ep #37 – How to Choose the Best Bidding Strategy for Google Ads
This week the digital marketing team dives into a complicated topic. Google Ads has many ins and outs when it comes to bidding. Follow along as the team talks about the different bidding strategies and how to choose the right one for your campaign objective.
Jennifer Denney has been in digital marketing since 2006 and has seen a wealth of changing landscape in digital marketing. She has seen the rise and fall of many marketing tactics. She is deeply rooted in understanding the metrics that showcase the value of certain types of digital marketing. She produces weekly live shows with Lorraine Ball, solocast with Elevated Marketing Chats, and conducts a weekly podcast called Elevated Marketing Dot Podcast.