Types of Adwords Bidding Strategies – Now Google Ads Strategies

Adwords bidding strategies or  Automated types of bidding in Adwords or Google Ads – Well! It is one of the most sought-after questions, asked under the topic, Adwords automation. Google Ads, formerly known as Google Adwords is one of the widely used advertising platforms used by n number of advertisers all around the globe. It lets them bridge the gap between their respected products and targeted audience. In order to attain quick Return on Investment (ROI), one must create a quality driven Google Ad campaign, which requires the right bidding strategies. Google Ads bidding strategies of two types including manual bidding and automated bidding.

But, here we will discuss Adwords automated bidding strategies only.

Let’s quickly get into the types of automated bidding strategies in Google Ads or Adwords:

Adwords Bidding Strategy 1: Target CPA:

Target CPA is an automated bidding strategy of Google Ads or Adwords, which is designed to get maximum conversions under your defined budget or target cost per acquisition (CPA). It manages, optimizes and sets the CPC bids automatically by evaluating the historical conversion data of your campaigns fetched at the time of live campaigns. Target CPA bid strategy can be applied on a single campaign (standard bidding) as well as multiple campaigns (portfolio bidding).  In order to evaluate the Target CPA bidding strategy, you need to make sure that the conversion tracking is aptly setup on your campaign.

Let’s suppose, you set the target CPA for $ 20, now Google ads will automatically achieve your business goals under your specified target CPA. In other words, it will automatically set the CPC bids for maximum   conversions under your average budget or target CPA. This amount represents an average amount for conversion, which may vary a little bit as well. Under Target CPA bidding method, you can also set minimum and maximum bids. But, it is not recommended by Google Ads, as it restricts the automated bidding of Google Ads.

Adwords Bidding Strategy 2: Target ROAS Bidding:

This type of bid strategy is used to automatically set bids according to a target of return on ad spent (ROAS) or the average amount you need per conversion. In other words, it makes your bids automatically adjust to generate maximum conversions under the target ROAS set by you. In order to set the target ROAS bidding strategy, your campaign should have minimum of 15 conversions in the past 30 days. There are chances that some conversions may return slightly higher return on ad spent and other may return a bit less return on ad spent.

Let’s understand ROAS with an example. Suppose you want to evaluate the sales of your online grocery store. And, your conversion goal is $3, which is the amount that is supposed to be added into your shopping cart for sales at once. In this case, if the amount spent on one conversion is $1, you are willing to make it to $3. Right? Well! It will be 300% of the amount spent per conversion. Hence, the ROAS in this case needs to be set up as 300%. The formula of ROAS is as following:

$ 3 conversion value

————————-       X 100 = Target ROAS (300%)

Amount spend on ad

Adwords Bidding Strategy 3: Maximize Clicks:

It is another type of automated PPC bidding strategy, which is popular to set bids automatically for generating maximum possible clicks under your target spend amount. Yes! Target spend amount is an amount that you are willing to pay each day for generating clicks. In the event that you do not mention the target amount, Google Ads platform will start using the daily budget of any other campaign. In other words, maximize clicks bidding strategy lets you set the bid cap limit to set the maximum bidding amount for generating clicks.

Adwords Bidding Strategy 4: Target Search Page Location:

This bidding strategy facilitates you to set automated bidding across multiple campaigns to show your ad on the first page of Google search results. In other words, under this biding strategy, Google ads platform increases or decreases bids to make your ads appear on the first page of Google search results. This bid strategy is applicable only in search network campaigns and are not compatible with dynamic ads. However, it does not guarantee the position of your ad on first page/position, but there are more chances that it may appear as per its objective. The placements of ads under this type of bidding are following:

  • Top of the first search result page: This option is used to display your advertisement on the first position of Google search result.
  • Anywhere on the first search result page: In case you want to your ad to appear on the first page of Google result, you can choose this option.

Adwords Bidding Strategy 5: Target Outranking Share:

This Adwords bidding strategy is used to beat the ad’s position acquired by your competitor. Another thing to mention about this Adwords bidding strategy is that it only works under search network campaigns.

Adwords Bidding Strategy 6: Enhanced CPC:

Enhanced cost per click or ECPC is a bidding strategy that automatically adjusts your manual bids for the clicks that are expected to generate conversions or sales. ECPC can be used with search, display and shopping campaigns. If you are using it with search network or shopping campaigns, you need to set up conversion tracking code to measure the performance of your respective ad.

Let’s understand ECPC with an example:

Imagine you are selling books online. The maximum CPC for your ad is set to $2 and the ECPC bidding is activated. In the event that Google Ads platform observes an auction that can lead to conversion or the sales of your book, the ECPC mechanism can increase the bid to $2.75. If ECPC sees an auction that is less likely to convert, it can reduce the bid amount to $1. In order to determine the possible conversions and bid amount, it makes use of demographics, browser location, time and other related factors.

Adwords Bidding Strategy 7: Target Impression Share:

This automated bidding strategy is used to maximize the reach and awareness of your products or services on Google search result. Under this automated bidding strategy, Google Ads platform automatically sets the bids to show your ad in a certain percentage. Target impression share strategy has three placement options:

  • Absolute top of the page, which means your Ad will be displayed on the top position of Google search result.
  • Top of the page, which means your ad will be displayed above the organic results.
  • Anywhere on the page, which means your ad will be displayed either above organic results or below them on the first page.

When it is about using target impression share bidding strategy, it is used on the campaign level. Let’s understand target impression share bidding with an example:

For instance, you mention 55% as your target impression share target for your respective ad to make it appear on the absolute top of the page. Now, Google Ads platform will automatically increase or decrease CPC bid to make it appear 55% times of the total possible amount of times they could show.

Google Ads platform has potential to set a sturdy marketplace for your respective products and services. So get the best from it to outrank your competition by using the above mentioned types of Google Ads automated bidding strategies.

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