Google Ads management can be daunting. The system is a complex for beginners to learn and there are many levers that can be pulled to optimize campaigns to their fullest potential. One of the most important decisions you’ll make as you launch your campaign is which bid strategy to use. In this article, we will answer the question: “What is bid strategy in Google Ads?” and provide guidance on how to select the best bid strategy for your business. We’ll also explore the different bid strategies available in Google Ads and their pros and cons.
If you ever have any questions about Google Ads, PPC management, reach out to an expert. Google Ads Pay-Per-Click can be a powerful tool in your arsenal if used correctly and has worked to provide a profitable ROI for businesses big and small.
Now, let’s dive into bid strategies!
What Is Bid Strategy in Google Ads?
Bid strategy in Google Ads is the method by which you automate your bidding to reach your desired advertising goals. Some of these options are more manual and require regular interface with Google Ads to be efficient. Others are more automated and require fewer hands-on guidance, but there will always be a need to tweak the system and not leave all your marketing dollars in the control of Google’s AI.
While there are many different types of bid strategies available, each has its own strengths and weaknesses. The key is to select the bid strategy that best aligns with your business goals.
The most popular types of bid strategies in Google Ads are:
- Target CPA (cost-per-acquisition)
- Target ROAS (return-on-ad-spend)
- Maximize Conversions
- Enhanced CPC (cost per click)
What IS Target CPA?
Target CPA is a popular bid strategy because it allows you to automatically set your bids to reach your desired cost-per-acquisition. The algorithm will continuously adjust your bids to try to reach your target CPA. This bid strategy is most effective when you have a good understanding of your conversion rate and can set a realistic target CPA.
To use Target CPA, you’ll need to set a target CPA and enable conversions tracking in Google Ads. This will require linking your Google Analytics account and setting up proper conversion goals within this system – which is something you should do regardless of your strategy! The system will then automatically adjust your bids to try to reach your desired CPA based on your selected conversion goals.
What Is Target ROAS?
Target ROAS is another popular bid strategy that allows you to automatically set your bids to reach your desired return-on-ad-spend. The algorithm will continuously adjust your bids to reach your target ROAS. This bid strategy is most effective when you have a good understanding of your conversion rate and can set a realistic target ROAS.
To use Target ROAS, you’ll need to set a target ROAS and enable value based conversions in Google Analytics. Once this is complete, you just need to link Google Analytics and Google Ads and select the appropriate value based goals for your strategy.
What Is Maximize Conversions?
Maximize Conversions is a Google Ads bid strategy that automatically sets your bids to help get the most conversions for your campaign while spending your budget. The algorithm will continuously adjust your bids to try to reach more people who are likely to convert. This bid strategy is most effective when you have a good understanding of your conversion rate, are confident in your keywords connecting with your audience and have historical data that the AI can use to interpret what types of searches will lead to a conversion.
Like other bid strategies, to use Maximize Conversions, you’ll need to enable conversions tracking in Google Ads. It is recommended that you have at least 15 conversions in your account and no less than 10 conversion in any given 30-day window to enable this strategy. If there is no historical data, then you may find yourself shut out from relevant searches as the system has not seen them convert in the past. For this reason, maximize conversions is best used after establishing some click data either through a maximize click strategy or an impression share strategy.
What Is Enhanced CPC?
Enhanced CPC is a Google Ads bid strategy that gives you more control over your bids by allowing manual bidding while still providing some automated bid adjustments. This bid strategy is most effective when you have a good understanding of your target keywords and the value of those keywords.
To use Enhanced CPC, you’ll need to set a manual bid and enable conversions tracking in Google Ads. This will require linking your Google Analytics account and setting up proper conversion goals within this system. The system will then automatically adjust your bids by up to 30% based on your selected conversion goals.
There are many other types of bid strategies available in Google Ads, but these are the most popular, especially once your account has some level of click data. Each has its own advantages and disadvantages, so be sure to select the one that best aligns with your business goals. And as always, if you need any help, our team at Hatchery is here to assist!
What is your favorite bid strategy? Let us know in the comments below!