Bid strategies in Google Ads

Bid Strategies in Google Ads: How to use them – a Complete Guide

If you have Google Ads accounts, either for customers or in your own business, you should know the different bid strategies that this online advertising tool has available, its applications, advantages and disadvantages. In this article I explain some of them for you to take into account when planning your AdWords campaigns and adapt it to your needs.

1. Manual CPC

This is the simplest strategy and consists of making a specific bid for each keyword, telling Google what we are willing to pay maximum for each click. You also have to keep in mind that if we have bid adjustments of various types in our campaigns, such as devices, ad scheduling, audiences, locations, you can raise or lower that maximum figure that we have set.

Advantages CPC Manual

  • Bid control
  • Control over the cost of each keyword
  • It can be a good strategy to start with Google Ads

Disadvantages Manual CPC

  • It takes time to have to be monitoring the account frequently
  • You can lose conversions by leaving everything manual
  • Words may be left out of the first page if you don’t control bids well

2. Enhanced CPC

Also called, enhanced cost-per-click (CPCM), its operation is the same as in manual CPC, but we give Google the opportunity to increase the bidding of our terms, if your algorithm detects good conversion opportunities, or it can also decrease those Bidding if you notice that conversion can be complicated. For this calculation, Google algorithms use several signals available at the time of the auction, such as demographic data, browser, location and time of day, with these variables, they adapt bids to the unique context of each user.

Enhanced CPC Advantages

  • Get more conversions than CPC Manual
  • First automation in bids that we can test
  • Improve campaign ROI
  • You can start a campaign in this bid strategy if conversion tracking is installed correctly

Enhanced CPC Disadvantages

  • You’ll have to check the word bids periodically to adjust them
  • You can miss the advantages of other more automatic bid strategies

3. Maximize clicks

With this type of strategy, AdWords will adjust your bids to get as many clicks as possible to your website, with the daily budget you have set.

Advantages Maximize clicks

  • Way to get visits quickly
  • It can be combined with Audiences, (for example Segmentation Remarketing ) to try to attract specific audiences

Disadvantages Maximize clicks

  • We can bring poor quality traffic by focusing on clicks
  • We lose the focus of conversions

4. Maximize conversions

In this bid strategy, Google is set to achieve maximum conversions with the budget allocated, automating the entire campaign with its algorithms, so we lose any type of control if we choose this type of bid in our campaigns.

Advantages Maximize conversions

  • We focus on conversions that is finally the ultimate goal of any online store
  • It may be a good option to combine it with advanced segmentations to test certain types of audiences

Disadvantages Maximize conversions

  • You can deplete your campaign’s daily budget on your conversion search goal
  • Control of manual bids is lost, leaving Google to control them

5. ROAS goal

When we set a ROAS strategy objective (return on advertising investment) in Adwords, what we are indicating to the system is the advertising return we want to obtain for our investment in that particular campaign. Google’s software will adjust your bids to reach the target number we want to reach.

If we indicate a return of 600%, we are telling Google Ads that of $100 invested we want to obtain $600 in sales through the results of visits of this campaign.

ROAS advantages

  • Excellent option to control the return of the campaign
  • Try to automatically optimize our investment in Adwords

ROAS disadvantages

  • The results may not be as expected or set in the campaign
  • It’s better to have a good conversion history before moving on to this bid strategy
  • You must have updated the conversion values ​​of each product or service sold on your website
  • They are a good option for Shopping campaigns or sales-oriented search

6. Target CPA

It is one of the most used strategies, it focuses on obtaining conversions from the cost per acquisition that we have established. It is a fully automated bid strategy in which Google’s algorithms automatically set bid adjustment and other parameters, devices, time slots, audiences, etc., to get conversions at the price we have set.

CPA advantages

  • Very controlled conversion costs when setting the CPA
  • Possibility of large conversion increases, by leaving the Google algorithm the job of getting conversions with automatic bids

CPA Disadvantages

  • You need to have a good conversion history in the campaign before moving on to these types of bids
  • Once you change, you may get conversions at a higher cost than before
  • Excellent option for Shopping campaigns or sales oriented search

7. Location targeting on the search page

This type of offer allows the advertiser to show their ads on the first page of Google results or at the top of the search results. We must choose between these two locations (top or first page) and Google will set the bids to adhere to this goal.

Advantages Segmentation by location on the search page

  • Great visibility of the brand compared to others
  • High positions by focusing on ad impressions by position

Disadvantages Segmentation by location on the search page

  • It focuses on impressions, regardless of the conversions to get
  • You can increase campaign costs by having a goal of achieving impressions at all costs

8. Top target ranking share

The objective of this type of bid is to position your ads above a certain domain of the competition in search campaigns. To start it you have to set these parameters:

  • Domain Name to overcome
  • Percentage of times you want to appear above that competitor
  • Maximum bid limit

Advantages Target higher ranking share

  • Exceed in positions to direct domains of the competition
  • Gain visibility to a certain brand over another

Disadvantages Higher target ranking share

  • It can cause dangerous CPC rises if the domain to be overcome begins to raise bids
  • Just look to beat a domain, not taking into account the conversions to get

9. Target impression share

It is a bid strategy recently appeared. With this option, the advertiser sets a percentage of target impressions, or what is the same, how often you want your ads to appear in the area of ​​the search page you select, when other users search for your keywords.

There are three placement options for which you have to bid with Target Impression Fee:

  • Absolute top of the results page
  • Top of the results page
  • Anywhere on the results page

You can also set a maximum CPC bid with the offer to control campaign spending.

Advantages Target impression share

  • Possibility to set the percentage of impressions for which we want our ads to appear
  • Control of appearances of our ads on the results page, both in impressions and positions

Disadvantages Target impression share

  • It does not focus on conversions

I hope this article helps you decide what bid strategy to use in your Google Adwords campaigns and be careful with choosing one that is not appropriate to our interests, we can take unpleasant surprises in which as you can guess, Google “always wins”.

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