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Managing bids is the most crucial process in a marketer’s work in a Google Ads account. Understanding how bidding strategies work can help maximize the effectiveness of your advertising efforts and increase conversion rates. In the previous article of the Advantrise blog, we talked about the ways of bidding (automatic or manual), and today we will finally consider the main strategies of automatic bidding and how to choose the best strategy according to the goals of your advertising campaign.
Automatic CPA (Cost-Per-Acquisition) strategy
This strategy allows you to set a target cost per conversion and allows the system to adjust bids independently to achieve this goal. Google Ads uses machine learning and historical data analysis to optimize bids for each request. This is especially useful for those who are looking for maximum cost efficiency and are willing to let the system adapt to changes on its own.
ROAS (Return-On-Ad-Spend) strategy
This strategy determines the target percentage of return on advertising costs. For example, if you want to get $3 profit from every dollar spent on advertising, you can set ROAS to 300%. Google Ads uses conversion and cost data to automatically adjust bids and maximize the return on ad spend.
Conversion maximization strategy
This strategy is aimed at maximizing the number of conversions for a set budget. Google Ads automatically adjusts bids to get the most conversions for the money available. This can be effective for businesses that prioritize the number of conversions over the cost per conversion.
Strategy for maximizing the number of clicks
If your main goal is to drive as much traffic to your website as possible, the click-through rate strategy allows you to automatically adjust your bids to get the most clicks for a set budget. However, the quality of the clicks you receive may be appropriate.
Share of impressions
This strategy for one or more PPC campaigns involves competing for the highest positions in the search results. Google’s algorithms choose the bids that allow an ad to become the first in the search results, or at least in the top positions. This approach can be useful in the most competitive environments, where users usually choose the very first offer among similar ones that do not have significant advantages.
Maximize Conversion Value strategy
This strategy aims to maximize the overall value of conversions, not just the number of conversions. By choosing this type of strategy, you are telling the system that you want to get as much revenue from your budget as possible. Google Ads uses data about conversion values (such as purchase amount) to automatically optimize bids and maximize your overall revenue.
Enhanced CPC strategy
This strategy combines automatic bid assignment with manual customization. You can set a maximum bid, but allow Google Ads to automatically change bids if there is a high probability of a successful conversion. This gives you a balance between control over bids and the ability to take advantage of machine learning to optimize your campaigns.
Maximize Conversions Profit strategy
This strategy is focused on maximizing the overall profit from conversions. You can tell the system not only the value of conversions, but also the cost of the order or marginal profitability, so that Google Ads can optimize bids based on these indicators.
Minimum CPA strategy (Target CPA)
This strategy allows you to set a maximum cost per conversion (CPA goal), and the system automatically optimizes bids to meet this goal. It is especially useful for those who have a clearly defined maximum price per conversion, but want the system to adapt to changes in the conversion environment.
How to choose the right strategy for automatic (or manual) bidding?
When choosing a strategy for automated bidding in Google Ads, it is important to consider several key aspects to ensure maximum efficiency of your advertising campaign.
Advantrise experts suggest following the following steps:
- Determine the goals of the advertising campaign. Usually, the goals of an advertising campaign coincide with the type of strategy offered by Google Ads.
- Evaluate the data. More data means better results for the algorithms. To begin with, you should start with manual bidding, and only after you have enough information about conversions, their value, audience types, costs, and advertising budget, you can start trusting automation.
- Budget. The advertising budget should clearly correspond to the advertising goals. Besides, some strategies are more costly, so you should estimate the profitability of their use in advance.
- Testing and optimization. Google allows advertisers to test different approaches to running an advertising campaign, so don’t be afraid to try something new and be sure to monitor the results.
Conclusion
Using automatic bidding strategies in Google Ads can make optimizing your campaigns much easier and allow you to achieve better results with less effort. The choice of a specific strategy depends on your goals and the amount of data you have, but it is worth experimenting and testing different options to find the most effective approach for your business. If you have any questions regarding automated betting strategies, please contact Advantrise specialists for advice by leaving your contact details in the Contact Us section.
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