How to Use Bid Strategies Effectively in Google Ads

Google Ads bidding strategies are at the heart of driving cost-effective results in your campaigns. Understanding how to use bid strategies effectively can significantly impact your campaign’s success. Whether your goal is to maximize clicks, impressions, conversions, or ROAS, selecting the right bidding strategy can make or break your campaign’s success. This blog will walk you through how to use Google Ads bidding strategies effectively, explore Google Ads strategies, and help you understand how to choose the best approach for your needs.

Types of Bid Strategies and Its Usage

1) Manual CPC (Cost Per Click)

Manual CPC allows advertisers to set individual bids for each keyword or ad group. It provides full control over costs and is especially useful for campaigns with limited budgets or highly competitive keywords.

• What it is: You set individual bids for each keyword or ad group.
• When to use: Ideal for those who want full control over their bids. It’s particularly useful for campaigns with limited budgets or highly competitive keywords.
• Pros: Complete control over costs, suitable for small-scale campaigns.
• Cons: Time-consuming and less effective for scaling

2) Enhanced CPC (ECPC)

Enhanced CPC blends manual bidding with Google’s automated tools to adjust bids based on the likelihood of a conversion. This strategy is a middle ground between manual control and automation. 

• What it is: Combines manual bidding with Google’s automated bidding to adjust bids based on the likelihood of a conversion.
• When to use: When you’re comfortable with manual CPC but want Google to help optimize for conversions.
• Pros: Adds a layer of automation while retaining control.
• Cons: Requires conversion tracking for accurate optimization.

3) Maximize Clicks

Maximize Clicks is a fully automated strategy where Google adjusts bids to generate the maximum number of clicks within your budget. This is ideal for driving traffic in awareness campaigns.

• What it is: Google automatically adjusts bids to generate the maximum number of clicks within your budget.
• When to use: Suitable for driving traffic to your website, especially in awareness campaigns.
• Pros: Easy to set up and ideal for high-traffic campaigns.
• Cons: May not focus on lead quality or conversion.

4) Target Impression Share

Target Impression Share ensures your ad appears in a specific position on the search results page or achieves a certain share of impressions, making it a popular choice for visibility-focused campaigns. 

• What it is: Ensures your ad appears in a specific position, such as the top of the page, or achieves a certain share of total impressions.
• When to use: For brand awareness campaigns or when visibility is the main goal.
• Pros: Guarantees high visibility.
• Cons: High costs, may not prioritize clicks or conversions.
  

5)  Maximize Conversions

Maximize Conversions uses Google’s algorithms to optimize bids for the highest number of conversions within a specified budget. This strategy is excellent for lead generation or customer acquisition. 

• What it is: Google optimizes bids to drive the highest number of conversions within your budget.
• When to use: When your goal is lead generation or customer acquisition.
• Pros: Easy to set up, no need for manual adjustments.
• Cons: Requires sufficient historical conversion data for effective optimization.

6. Target CPA (Cost Per Acquisition)

Target CPA focuses on achieving conversions at a specific cost per acquisition. It’s particularly effective for campaigns aiming to generate predictable conversion costs. 

• What it is: Focuses on generating conversions at a specific cost per acquisition.
• When to use: When you want predictable conversion costs.
• Pros: Excellent for lead generation with controlled costs.
• Cons: Performance depends on accurate CPA goals and sufficient data.

7. Target ROAS (Return on Ad Spend)

Target ROAS optimizes bids to achieve a predefined return on ad spend, making it ideal for eCommerce or revenue-driven campaigns. 

• What it is: Optimizes bids to achieve a specific return on ad spend based on revenue data.
• When to use: For eCommerce or revenue-focused campaigns.
• Pros: Maximizes revenue and ensures profitability.
• Cons: Requires accurate conversion value tracking.

8. Maximize Conversion Value

Maximize Conversion Value prioritizes high-value conversions over quantity by optimizing for total conversion value within a given budget.

• What it is: Focuses on maximizing the total conversion value (e.g., revenue) within your budget.
• When to use: When you prioritize high-value conversions over quantity.
• Pros: Maximizes high-value leads or purchases.
• Cons: Requires precise tracking and data input

9. CPM (Cost Per Thousand Impressions)

CPM bidding charges advertisers per 1,000 impressions, making it an effective choice for increasing brand awareness and visibility.

• What it is: Pays per 1,000 impressions rather than clicks or conversions.
• When to use: For brand awareness campaigns.
• Pros: High visibility and awareness.
• Cons: May not lead to direct conversions.

10. CPV (Cost Per View)

CPV bidding is specific to video campaigns and charges advertisers for views or interactions, making it ideal for engaging audiences on platforms like YouTube.

• What it is: Used in video campaigns, charging per view or interaction with a video ad.
• When to use: For YouTube campaigns focused on engagement.
• Pros: Effective for video engagement.
• Cons: May not drive direct actions.

Which Bid Strategy to Use According to Campaign and Conversion Goal?

What Are the Pitfalls You Should Avoid While Using Bid Strategies?

1. Overlooking Conversion Tracking: Without proper tracking, automated strategies like Target CPA or ROAS may not perform effectively.
2. Setting Unrealistic Goals: A low CPA target or high ROAS can restrict campaign performance.
3. Neglecting Data Requirements: Strategies like Target ROAS require substantial historical data.
4. Ignoring Audience Segmentation: Automated bidding performs better with segmented, relevant audiences.
5. Misalignment with Budget: Using Maximize Clicks or Conversions with limited budgets can lead to inefficiency.
6. Not Testing Strategies: Switching bid strategies without A/B testing can lead to performance drops.

Conclusion

Selecting the right Google Ads bidding strategy is essential for achieving your campaign goals. This blog has outlined the various options, their use cases, potential pitfalls, and how to align them with your objectives and your target audience. By leveraging these Google Ads strategies effectively, you can optimize your campaigns and achieve measurable success. If you’re wondering how to choose the best bidding strategy for Google Ads, start by understanding your goals and aligning your bid strategy to meet them.

Vikram Gawali

Senior PPC Manager

A seasoned Senior PPC Manager with over five years of experience in managing paid campaigns across platforms like Google Ads, LinkedIn Ads, Facebook Ads, and Quora. Specializing in campaign ideation, Vikram excels in crafting compelling messaging that resonates with target audiences.