Bidding strategies in Google Ads: which ones should you choose?

In this blog, we explain what Google Ads bidding strategies are and how they help you achieve your goals.

Manual CPC

We start with manual CPC (Cost-per-Click). This is the strategy if you want to keep full control over your bids. This is because here you manually determine the maximum amount you want to pay for a click and you can set this amount per ad group or even per keyword.

Although it gives you a lot of control, manual CPC is used less often these days. In fact, Google's automatic bidding strategies are getting better at optimizing bids based on data and are increasingly leading to better results as well. Still, manual CPC can be useful if you want to closely manage your own budget within your campaign.

Improved CPC (ECPC).

Want to give Google a little freedom without relinquishing complete control? Then you can check the "enhanced CPC" (ECPC) option. With this, Google increases or decreases your bids based on the probability of a conversion. This means that Google increases bids when the probability of a valuable click is higher and decreases when the probability seems less favorable.

Enhanced CPC gives you a mix of control and automated optimization that, in most cases, makes the campaigns produce better results.

Maximize clicks

Click maximization is an automatic bidding strategy that focuses on - you guessed it - as many clicks as possible. You set a daily budget and Google then goes to work getting as many visitors to your website as possible within that budget. This is especially useful if your campaign is still in its early stages and you want to collect data.

With this bidding strategy, keep in mind that the quality of clicks can vary. While you often do get more visitors, it does not always mean that these visitors actually convert to customers or leads.

Maximizing conversions

The bidding strategy "Maximize Conversions" in Google Ads is interesting if your goal is to get as many conversions as possible. With this strategy, you set a daily budget and let Google optimize the campaign for as many conversions as possible. However, it is important here that your conversion tracking is set up properly so Google can optimize the bids appropriately. It may take some time for Google to gather enough data to make this strategy work properly.

While it is a powerful option, be aware that within this bidding strategy, there is no distinction in the value of conversions. Thus, Google places equal value on a sale of a cheap product as it does on an expensive one, nor does it distinguish between a valuable conversion such as a quote request and a no-obligation click on a phone number (provided this is set as a primary goal).

So are you collecting many leads or conversions of low quality and value with Google Ads? Then this can cause your campaign to become less profitable or even loss-making.

Optimize conversion value

Do you want Google to focus on the value of your conversions rather than the number? Then conversion value optimization is a good choice. Google increases bids when the likelihood of a high-value conversion is higher. This can be a good strategy if you sell products with large differences in value.

However, it is important to make sure you set the value per conversion properly. After all, without this information, Google cannot optimize effectively. Additionally, keep in mind that this bidding strategy can cause higher costs, so keep monitoring the cost per conversion closely to ensure your campaigns remain profitable.

Target display rate

Do you especially want visibility in search results? Then target display rate is an appropriate strategy. Google then ensures that your ads are displayed as often as possible at the top of the page or in another prominent place in the SERP. This strategy is ideal if, for example, you are working on increasing your brand awareness.

However, it is worth noting that this strategy focuses purely on visibility and does not take click rate or click revenue into account. It may therefore be less suitable if you are also looking at conversions or revenue from the campaign.

Target CPA

With the Target CPA (Cost per Acquisition) bidding strategy in Google Ads, you automate bids to achieve as many conversions as possible at a predetermined amount per conversion. You specify how much a conversion should cost and Google automatically adjusts the bids based on previous results.

Target CPA is especially effective when you have already collected enough data about your campaign performance. Without previous data, Google has trouble making accurate bids. The cost per conversion may end up varying, but at the end of the line, you will achieve an average CPA that is in line with your goals.

Target-ROAS

Want to maximize revenue from your ad budget? Then Target ROAS (Return on Ad Spend) is the bidding strategy for you. Here you specify how much revenue you want to generate for every euro you spend. Google then optimizes bids based on this amount. The higher the expected value of a conversion, the more Google is willing to bid.

Note: As with Target CPA, it is important that you already have sufficient historical data. The more data you have, the better this strategy works to make reliable predictions.

Which bidding strategy is right for your campaign?

So the best Google Ads bidding strategy to choose depends on your goals and where in the customer journey you want to reach your target audience. And, of course, on your budget.

If you are targeting conversions, CPCs tend to be a bit higher because these clicks tend to be more valuable and thus more popular with competitors. Are you targeting people more in the orientation phase? Then the cost per click is usually lower because there is less chance of conversion and thus less competition. While this generates more traffic, it is often less likely to lead to a direct conversion.

Need help with your Google Ads campaigns?

Could you use some help setting up or optimizing your Google Ads campaign? Feel free to contact us.We would love to help you get the most out of your budget!