Google Ads is one of the most powerful advertising tools on the internet. But, it can also be one of the most confusing. That’s because every strategy out there has a different effect on your ad spend. Depending on what you’re buying, you’ll need to use Google Ad to achieve your goals. But, to do that, you need to understand the different types of bidding strategies.
Choosing the Right Strategy
With Google Ads, it’s all about choosing the right strategy. Using a solid strategy will increase your conversions, lower ad costs, and take your performance to the next level. Do you know what you’re doing? If you don’t, you can blow through your entire budget in just a few days. But, making the right moves means boosting your campaign performance to new heights. One study from Medium found that changing Google Ads bidding strategies lead to a 142% increase in conversions. In the post, we’ll look at different types of Google Ads bidding strategies, and how to use them to your advantage.
Google Ads Bidding Strategies
Some users prefer to use the exact same ad strategy for all campaigns, while others opt for more flexible strategies. Always keep in mind that you’ll need to use multiple strategies to target your audience.
One way to stay focused is to use bid strategies on different campaigns. Using different bid strategies allows you to set up different bids for each campaign, so you can create a more efficient ad spend. You can set bids for a fixed price, a fixed cost, or bid on a CPA. Bid strategies also give you the ability to specify how many impressions you’re willing to pay for, and the total budget. But, most importantly, you can set bids to match your budget, and the resulting ads are guaranteed to have the exact same results. Another strategy that many marketers use is to split the Google Ad budget across several bidding strategies.
The Cost-per-Click (CPC) Bid Strategy
The CPC bid strategy is the most straightforward. You bid on your ad and wait to see what Google will give you back in return. Click-through rate (CTR) is the most important metric for your ads, so increasing your CTR will increase your conversions, and CTR is directly related to CPC. Every type of CPC bid strategy works, and it’s all based on how Google chooses to show ads to the searchers it’s tracking. The keyword you target is the only thing they’ll factor into this decision. As long as you’re adjusting to your target keyword, this strategy will yield you the best results.
The Target Cost-per-acquisition (CPA) Bid Strategy
One of the simplest bidding strategies is the Target Cost-per-acquisition (CPA) Bid strategy. This strategy uses a combination of bid prices, ad position, keywords, and ad copy. It’s a very popular approach, with Google Ads showing over 15 billion in total ads for this bidding strategy. Target cost-per-acquisition bids work best with ad copy that is simple and actionable.
For example, if you want to sell tickets to a music concert, you might write in your ad copy:
Join www.buy.ticketleap.com and get tickets to the sold-out Drake concert on Wednesday. Buy a ticket to the sold-out Justin Timberlake concert on Tuesday.
This simple copy is simple and measurable. By adding this simple keyword, your conversion rate is going to be much higher.
The Target Cost-per-impression (CPM) Bid Strategy
CPM bidding is the simplest of all Google Ads strategies, and it’s the most inexpensive way to run a targeted ad campaign. The CPM model only requires a simple divider: Cost-per-impression (CPI) is the amount you’re willing to pay per impression on your ads. The conversion rate (CTR) is the number of conversions a user experiences on your ad. You should use Google Ads CPC bidding when you have a very low CTR and your CPI is high. To increase your CPC, start by lowering your CTR. This is known as “channel regression.” Use this conversion rate calculator to analyze your CTR. A low CTR indicates that your ads are getting lost in the noise. Once you know your CTR, you can go back to the conversion rate and start decreasing your CPI. For example, if your CTR is 0.
The Quality Score Bid Strategy
Another type of Google Ads bidding strategy is the Quality Score Bid strategy. Quality Score Bids are a great way to increase conversion rates by making your bids more competitive. It works like this: Under Quality Score Bids, you bid below the minimum bid (typically $0.30 or $0.50). After your bid, you’re evaluated against competitors. If you beat their bid by more than $0.05, you’ll be marked “High Quality.” If you beat it by less than $0.05, you’ll be marked “Low Quality.” This is a very effective bidding strategy for the campaigns that are easily performing (and have a high potential for higher conversion rates). To learn more about Quality Score Bids, check out this article from Criteo.
Using the Right Strategy
Before you go all-in on any marketing strategies, make sure you’re using the right ones. Your Google Ads strategy is crucial to growth and helps you gauge the right balance between conversions and costs. If you don’t get your strategy right, your ads will be too expensive, and you’ll be wasting time and money.
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