Google Ad Bidding Strategies

Google Ads uses a bidding system that determines how much you pay for each interaction with your ad—be it a click, impression, or conversion. Choosing the right bidding strategy is crucial for achieving your campaign goals efficiently, whether you’re aiming for website traffic, brand awareness, leads, or sales. In this lesson, students will learn the different types of bidding strategies available in Google Ads and when to use each one.

1. Manual vs. Automated Bidding

a. Manual CPC (Cost-Per-Click)

• You set individual bids for each keyword or ad group.
• Offers complete control but requires ongoing optimization.
• Best for small campaigns or when testing performance.

b. Automated Bidding

• Google automatically sets your bids based on your goals.
• Uses machine learning to maximize results.
• Saves time and adjusts in real-time to changes in competition or user behavior.

2. Smart Bidding Strategies (Goal-Based Automation)

Smart Bidding is a subset of automated bidding that uses machine learning and historical data to optimize for conversions or conversion value.

a. Target CPA (Cost Per Acquisition)

• Google aims to get the most conversions at or below a set average cost.
• Ideal for lead generation or e-commerce conversions.

b. Target ROAS (Return on Ad Spend)

• Google maximizes conversion value while trying to achieve your desired ROAS.
• Best for businesses tracking revenue from ads (e.g., online stores).

c. Maximize Conversions

• Google automatically sets bids to get the most conversions within your budget.
• Simple and effective when you want more leads or sales, but don’t have a strict CPA goal.

d. Maximize Conversion Value

• Google focuses on driving the highest value of conversions, rather than just the number.
• Suitable for advertisers selling products/services with varying prices.

3. Awareness & Engagement-Focused Strategies

a. Maximize Clicks

• Google aims to get as many clicks as possible for your budget.
• Great for increasing website traffic or building remarketing lists.

b. Target Impression Share

• You set the percentage of times you want your ad to show at the top or anywhere on the page.
• Good for brand visibility and dominating SERP space in competitive industries.

4. Choosing the Right Strategy

The right bidding strategy depends on your campaign goals:

5. Tips for Bidding Success

• Always track conversions properly before using Smart Bidding.
• Combine bidding strategies with audience targeting for better results.
• Allow Smart Bidding time to learn (typically 7–14 days of data).
• Monitor performance metrics like CPA, ROAS, and conversion volume.
• Be prepared to adjust goals and bids based on real-world data.