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Google Ads

7 Google Ads Bidding Strategic Options For You: Pros and Cons

The first step you must take as an advertiser is that you need to consider your primary objectives. What essential purpose do you want to achieve, is it clicks, impressions, conversions, or views?

As Klientboost said, “nothing should ever set on auto-pilot.”

There are ad campaigns that need you or your agency should keep in touch with. Running advertisements is not smooth sailing but rather a lot of turbulence. There will be little adjustments along the way. 

But hey, don’t worry. The Dream Team Digital Marketing got your back. We offer Google Advertising Services. If you wish to check it out, then click here for more information and get a consultation from us.

Now let us know about the 12 various Google Ads Bidding Strategic Options for you.

  1. Target Cost per Acquisition (CPA)

This kind of strategy will help you to get more conversions if you set your own target of CPA. This will help you hit if your goal is to keep with targets and increase leads. 

PROS

  • Targeting CPA bidding could help you to have more conversions if your focus in advertising is to garner conversions such as sales, signup, or mobile app downloads. 
  • This strategy uses conversion tracking data so it will avoid unprofitable clicks. Also, will get a low-cost conversion as many.
  • It will automatically create the bids so that they will hit your target CPA.

CONS

  • While using this strategy campaign by campaign, you can’t set a maximum CPC bid. But you can do maximum CPC bids if you will use the portfolio strategy which we will tackle later on.
  • A healthy daily budget, at least 2c higher than your tCPA goal for the campaign, is a mandatory need for tCPA. The higher the better budget.

According to Klientboost, their client, AnswerForce, using the tCPA bidding strategy helped them to acquire a 30% increase in conversion rates while a 12% decrease in CPA. Not bad though.

  1. Target Return on Advertising Spending (ROAS)

If you have a particular ROI you need to hit regarding your PPC spend, well as spend ROAS fits well for your ads campaign. ROAS is known as a metric for your conversion rules (this is set upon conversion tracking stage) or Google Analytics eCommerce profits into account. 

For instance, you want a 7% ROI. Meaning you could get $1 spent on every click, so you’ll have a $7 ROI. This would set your ROAS at 700%.

PROS

  • It can eliminate the hassle of finding the ideal mix between volume sellers and high-margin winners on eCommerce sites with various products.
  • Enables you to reach audiences who are prepared to make purchases

CONS

  • Google will optimize for the terms that will provide the best ROAS if you provide it with the data it needs (product revenue) to determine which keywords are the most profitable.
  • Because it aims to achieve your return on ad spend objectives by generating more revenue with less expenditure, optimizing for ROAS can occasionally result in lower ad spending.
  • The main objective is to maximize ROAS; not to maximize your revenue in terms of cash amounts.
  1. Maximize Clicks

Google Ads will set your bids automatically when you need a hand to get as many clicks as you want within your target budget if you will maximize clicks. Thus the best bidding strategy for you is if you have a strong conversion rate that aims for more volume.

PROS

  • This is fundamental automated bidding, which is clear-cut and basic.
  • Tends to increase search impression share (SIS)  while decreasing CPCs.
  • This will not take time to learn because it is the easiest bidding strategy when it comes to garnering clicks.
  • In traffic generation, maximizing clicks is the most efficient bidding.

CONS

  • Possibly there can be a lower quality of clicks and conversions.
  • After conversions, it will go passive.
  1. Maximize Conversions

You can have Google automatically set your bids to assist you to get the most conversions possible while staying within your budget if your objective is to increase sales or leads. This method works well for spending all of your money in one day.

PROS

  • This strategy would help your conversion volume drives higher.
  • Helps to identify more potential customers and places greater bids on them, automatically.

CONS

  • It is pricey and may be out of your budget because it has no big limit control.
  • Google wants to increase your conversions as much as it can, but doing so may increase your costs and harm your ROAS or your CPA.
  1. Maximize Conversion Value

Your bids are automatically set by Google Ads to help you maximize conversion value while staying within your budget. In order to determine the best CPC bid for each auction, Google gathers data on the device, location, time of day, demographics, query, and more.

PROS

  • You are driving the highest value of dollars profit from your advertisement, automatically.
  • Most likely Google will find possible customers who will purchase your products or services completely.

CONS

  • Your spending using this bidding strategy will be at more risk. It will lead to bad results ROAS.
  • Only conversions that are worth more are the main emphasis, not obtaining you more conversions for your money.
  1. Target Impression Share

In order to help you reach your Impression Share goal across all campaigns, Target Impression Share Bidding automatically sets bids. 

According to Klientboost, depending on your ads, there are three options for you for the Target impression share strategy:

1. On the top of the page, absolutely.

2. One the top of the page

3. Anywhere on the page of Google search results

You can cap the highest amount you’ll allow the strategy to bid by setting a maximum CPC bid restriction with this strategy. Setting your limit too low runs the danger of limiting your bids, which could have an impact on your objectives. Your CPCs could significantly soar and your budget could be quickly depleted if you don’t put any restrictions at all. 

PROS

  • Excellent for brand-related keywords that you want to rank highly for (goal 95% impression share).
  • Ensures that the top impression share (IS) for your search is where you want it to be.

CONS

  • Too costly yet it’s difficult to reach the impression share goals.
  • Does not always focus on conversion optimization.
  1. Manual Cost-per-click (CPC)

You can set bids for manual cost per click at the ad group or keyword level. The most control may be had by setting specific bids at the keyword level. Manual bids at the ad group level, on the other hand, apply the same bid to all of the keywords or placements in that ad group.

For new advertisers, accounts, or campaigns, this is typically the ideal bidding technique. You may monitor performance carefully and make sure that none of your advertisements are overpaying.

 PROS

  • Using this strategy will provide you with the highest level of control over your bids.
  • The most you’ll ever pay for a click is your maximum CPC bid, but you’ll usually pay less (notwithstanding any bid adjustments you have in place)

CONS

  • Getting the best results of the bid requires a lot of attention such as effort in work, time, and experience.
  • It requires less detailed reports than automated bidding.
  • Uses no machine learning algorithm from Google to identify users who are more likely than others to convert.

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The Dream Team Digital Marketing is a digital marketing agency. We help businesses to boost their sales and give solutions such as marketing strategies for 7 years of digital marketing expertise and also we are experts in Google Advertising services. The company will help you to give accurate analytic reports of your Facebook ad campaigns and suggest better strategic plans to improve them.

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