Effective Google PPC Ads Bidding Strategy You Should Know In 2022   

Do you want to change your ads strategy? Why not PPC ads? Google Ads can be very effective if you understand PPC ads bidding strategy!

 

Advertising is a basic and essential part of any business. Especially in digital marketing, it is very important to update your ad strategies accordingly with technology, user experience and of course data. When it comes to Google Ads choosing the right bidding strategy isn’t always easy or transparent to best reach you audience as well as keep ad spend down. 

 

If you don’t know who your target audience is and what you are doing, you may waste your full budget in just a few moments. 

 

But, if you have the right Google PPC Ads Bidding Strategy, you can run effective campaigns with higher ROAS. A recent Google Ads report showed that simply changing your ads bidding strategy could increase conversions by 142.86%. 

 

In this article, we’ve compiled the types of Google ads bidding strategies, and how to use them to get maximum profit. If you’re interested in PPC for social media marketing, check out this great post:

What is a PPC Ad? 

PPC is an advertising model used to drive traffic to websites. It is the acronym for Pay-Per-Click. It means advertisers have to pay each time a user clicks on one of their online ads. 

 

You can see different kinds of PPC ads but one of the most popular types is the paid search ad. These ads you will see when you search for something in a search engines like Google. 

 

Suppose you are searching for something, maybe [garments] you want to buy — you’ll see relevant ads on that particular product. 

 

On the other hand, if you search for something like ‘Mother’s Day Gift’ or furniture ‘bed or chair’. All of these you can see on the results page with relevant ads.  

Google has a wide variety of ads including Search, Display, Shopping, in App and more.

 

In this post we’re going to cover the different Google PPC Bidding Strategies and how to use them effectively. 

1. Target Cost Per Acquisition (CPA)

If you want to optimize conversions, you can use the CPA bidding strategy. If you want to focus on driving conversions as your primary goal for the campaign then selecting  CPA  bidding will focus on trying to convert users at a specific acquisition cost. 

 

Through this method, Google ADs can automatically set bids on each campaign based on your CPA. It can be complicated if you don’t know what acquisition costs are.  For instance, if you sell a product at $ 60, you don’t set your CPA at $60. 

 

That would be worthless — you would need to take into consideration your product margins and ad spend to calculate profit. 

2. Target Return on Ad Spend (ROAS)

It is one of the  PPC Ads bidding strategies that throws most for a loop. 

 

Why?

 

Because it demands some math. Yes, math is a dreadful subject that most small business owners don’t take the time to understand when it comes to Ads. But, math is important in this field. 

 

Target ROAS is the ad bidding strategy where Google sets bids to maximum conversion value which is based on the return you want from your ad spend. 

 

And, this number is percentage-based. For example: suppose you want to generate $12 for every $3 spent.  In this case, you have to follow the formula: Sales ÷ ad spend x 100% = Target ROAS. 

 

Let’s do the math for the example above, it looks like….$12 in sales from campaign ÷ $3 ad spend (clicks) x 100% = 400% target ROAS

 

Take a look at how Pixel Productions approaches ROAS in this case study.

3. Maximize Conversions

Maximize Conversions is the easiest bidding strategy that Google ads offers for you. To get the most conversion, google automatically runs bidding for you by using the maximum daily budget that you set.  It is one of the Google Ads Automated Bidding strategies. 

 

It means google offers you the best conversions set for your budget. If you spend $40, Google utilizes it wisely to find the most conversions. Suppose a single conversion costs $40, Google won’t bid for you. 

 

Before selecting the ad bidding strategy, be sure to check the daily budget amount that you set at a suitable level. That you want to spend. Plus, using this strategy, you don’t have to put any details to set up. 

4. Enhanced Cost Per Click (ECPC)

Enhanced cost-per-click (ECPC) helps you get more conversions from manual bidding. ECPC works by automatically adjusting your manual bids for clicks that seem more or less likely to lead to a sale or conversion on your website.

 

If  CPCs are very high and the search is too competitive then Google can minimize your bid to cost less due to decreased chances of converting. 

 

You can select if you want the algorithm to improve your set bids based on a flat number of conversions.  Plus, you can set bids for the value of the conversions. 

5. CPM (Cost Per Thousand Impression)

CPM is the acronym for Cost Per Thousand Impressions.  It is a term for marketing in the advertising field. It is bidding uniquely based on impressions.  You would want to use this if you’re looking to increase brand awareness.

 

Let’s give an explanation: CPM is used to denote the price of 1000 advertisement impressions on the display network. Suppose a publisher charges a $3.00 Cost Per Thousand Impression, it means an advertiser must pay $3.00 for every 1000 impressions of that specific ad. 

 

This ad bidding is appropriate for YouTube Ads and display network Ads. It is not for a search network. Make sure that before using this ad bidding, you can check the purpose of your ads. 

Wrap UP!

These are the bidding strategies you need to be familiar with if you’re looking to drive business leads or sales using Google Ads. 

Before we leave you to test these out on your own, a word of wisdom;

There is a distinct difference between automated bidding and smart bidding with Google Ads.

Smart Bidding is a subset of automated bid strategies that use machine learning to optimize for conversions or conversion value in each and every auction—a feature known as “auction-time bidding”. Target CPA, Target ROAS, Maximize conversions, and Maximize conversion value are all Smart Bidding strategies.

Google looks at historical search behaviour and contextual data to predict the likelihood of a conversion and then increases your bids when a conversion appears more likely.

Smart bidding can optimize based on data from all of your campaigns, so even new campaigns without data of their own may see increased performance. To evaluate results accurately, we recommend measuring performance over longer time periods that have at least 30 conversions, such as a month or longer (50 conversions for Target ROAS). Relevant keywords can be added to low volume campaigns to expand targeting and increase conversions.

It makes a lot of sense to apply these smart bidding strategies to your digital marketing.

For a little more insight into optimizing your Google Ads, take a look at these posts:

Now it is your turn to give your feedback! You can connect with us through mail too. 

 

I would like to know how it will affect your ad strategy.