What is bidding?

 A bid represents the amount of money you are willing to spend for a single click on a given keyword in Google Ads. Those bids will dictate where your ads show up in search results. · Every time a search is made in Google, Google will run the results through their algorithm and rank them according to how much people are willing to pay for that term as well as your quality score for that term. · You can go into Google Ads and make changes to your bids as often as you like to try to optimize for the best results possible. · Changing your bids will not alter the budget you have set for your total ad spends.

There are two bidding strategy:

1. Automated Bidding Strategies.

2. Manual bidding Strategies.

Automated Bidding Strategies:

 Automated bidding is a Google Ads bid strategy designed to maximize results based on your set campaign goals · With automated bidding, Google automatically sets bid amounts based on the likelihood that your ad will result in a click or conversion. · By automating bids, there’s no need to update bids for keywords or ad groups manually. · Automated bid strategies analyze past data and learn over time, using performance to inform future bids. · Automated bids are available for both Search and Display ads depending on the bid strategy you are using. Following are the automated bidding strategies

: i. Target CPA (cost-per-acquisition/action): With this strategy, Google automatically sets Search or Display bids to help you receive as many conversions as possible at your set target cost-per-acquisition (CPA). · Though some bids will cost more or less than your target cost, they’ll average out to ensure that you’re staying where you need to overall.

 ii. Target ROAS: · Target ROAS automatically sets your bids to help you receive as much conversion value as possible at your set ROAS (the average value you receive in turn for every dollar you spend on ads). · Some conversions may have a higher or lower return than your target. · This bidding strategy can only be applied to a single campaign instead of multiple campaigns

 iii. Maximize Clicks: The Maximize Clicks strategy aims to increase the number of visitors to your site. · The strategy automatically sets bids to help you maximize clicks within your set budget · You can set a bid limit to ensures that you won’t end up blowing your budget on a few clicks

iv. Maximize Conversions: This strategy automatically sets bids to help you receive the most conversions for your campaigns while spending your entire budget. · With this strategy, Google optimizes for a higher volume of conversions. · Best used when you have a large budget and want to automate your ads to drive more conversions.

 v. Target Search Page Location: This bidding strategy prioritizes ad placement, letting advertisers bid on either the top of the search page or on the first page of results. · You get to pick which location you want to prioritize.

 vi. Target Outranking Share: With Target Outranking Share, you can choose another advertiser’s domain that you want to outrank in ad position and how often you’d like to outrank it. · Google will then automatically set your search bids to help meet that objective. · Best used when you want to outrank a specific competitor in your industry.

vii. Enhanced CPC: it’s similar to manual bidding · Enhanced CPC allows Google to adjust your bid even if you’ve set it manually. · Google will adjust the bid depending on the likelihood for a sale, increasing it if the likelihood is higher and decreasing it if lower.

 viii. Target Impression Share: This is a relatively new bidding strategy that prioritizes bidding to reach a target percentage of the impression share. · Impression share tells you what percentage of searches you’re appearing in that you were capable of showing up in based on targeting and keywords. · Sometimes a low impression share is at least partially the result of low bids and this strategy can help you combat that. · The higher the impression share, the more people are seeing your ad and the more chances you have at a click or conversion.

  2. Manual Bidding Strategy: In manual bidding strategy you can set your own maximum cost-per-click (CPC) of your advertisement. · This differs from automated bid strategies that let Google bid for you. · This strategy involves a high degree of patience, time and PPC knowledge to get good ROI (return on investment). · It is a common thing that people who are new to Google Ads will use manual bidding before they try more advanced solutions.

 Manual bidding is best if your budget is limited. · You don’t have much consumer data. · You want full control of your campaigns and ads. · You have a lot of time to control your campaign.

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