You’ve probably heard that Google pay-per-click (PPC) advertising is a fantastic way to get your business in front of more people online.
Well, you’re not wrong!
After all, Google is the world’s largest search engine, with over three billion searches per day.
That said, running a successful Google Ads campaign is not as simple as just setting up an account and letting it run itself.
In any PPC campaign, it is important to choose the right bidding strategy.
Now, the thing is, there are many bidding strategies to choose from…
You’ll see common strategies like cost-per-click (CPC), cost-per-thousand impressions (CPM), and even cost per acquisition (CPA).
So, how do you determine which bidding strategy is best for your business?
Well, it can be challenging to know which one is right for you.
So right now, you will learn some of the bidding strategies available in Google Ads.
PLUS, the benefits and drawbacks of each one.
Whether you’re just starting with Google Ads or looking to refine your current strategy…
…you may find some golden nuggets of wisdom as you keep on reading
Let’s get started!
Different Bidding Strategies Available And What Do They Mean For Your Business
The CPC Bidding Strategy
The cost-per-click (CPC) bidding strategy is perhaps the most commonly used by many online business owners.
Under this method, you pay each time someone clicks on your ad.
The main downside of CPC is that you’re literally paying for every single click, whether it converts or not.
That’s why you need to keep in mind that this bidding can be expensive, mainly if you’re in a competitive industry.
So, if you’re not careful, it’s easy to spend a lot of money without getting any results.
Benefits: CPC bidding is a good option if you’re looking to drive traffic to your website or landing page.
It is also good for brand awareness since you’re not paying for every single impression.
PLUS, you have more control over your budget since you can set a maximum CPC bid.
The CPM Bidding Strategy
The cost-per-thousand-impressions (CPM) bidding strategy is an excellent option if your goal is to increase the visibility of your campaign.
It is known to be absolutely helpful for boosting brand awareness if you know how to do it right.
The way it works is that you will have to pay each time your ad is shown 1000 times using this method.
So it is best to use this for ads that do not focus on immediate conversions but on building long-term brand awareness.
The downside of CPM bidding is that you would end up paying for many impressions that may not result in clicks.
Benefits: CPM bidding is a fantastic option to reach a large audience.
PLUS, it can be less expensive IF you have high-quality ads.
It means if your ads have:
- A Laser-focused or Relevant to your target market
- Attention-grabbing design
- And a persuasive Ad Copy
Then, you have a higher chance of driving conversions even if people don’t click on your ad. (you’ll likely see a lower cost-per-click))
The CPA Bidding Strategy
The cost per acquisition (CPA) bidding strategy is a terrific option if you’re looking to increase sales and conversions.
Under this method, you pay each time someone converts on your ad (e.g. makes a purchase, signs up for your email list, etc.).
The thing is, CPA bidding can be costly. You’re essentially paying for each conversion, so you need to ensure that your ads are well crafted.
Benefits: The CPA bidding strategy can be a great option if you’re looking to increase sales and conversions.
To be successful with CPA bidding, you need to ensure that your ads are well crafted and relevant to your target audience.
Automated Bidding Strategies
Google also offers automated bidding strategies. With these, you don’t have to set a bid manually for reach and every auction…
Instead, Google will automatically set bids for you based on your goals.
The most common automated bidding strategies are:
– Target Search Page Location
– Target Outranking Share
– Target CPA
– Maximize Conversions
You see, we won’t go into too much detail about each one here (at least for now), but you can read more about them in one of the future blog posts.
Benefits: Automated bidding strategies can be a great option if you don’t have the time to manually set bids for each auction.
Google will set bids for you based on what you want to achieve. It means you can save a lot of time.
Common Mistakes People Make With Their Bidding Strategies
Now that we’ve gone over the different types of bidding strategies available let’s discuss common mistakes people make when choosing a method.
A lot of business owners and marketers make this one common mistake.
Not aligning their bid strategy with their goals.
For example, if your goal is to increase brand awareness, you should be using a CPM bidding strategy.
However, if your goal is to increase sales, you should be using a CPA bidding strategy.
Another common mistake is this…
Not taking into account their budget.
You might spend more money than you should with bidding strategies…
Particularly if you choose CPC or CPA bidding.
So, if you’re on a tight budget, you need to make sure that you’re not overspending on your ads.
An excellent way to do this is to set a maximum CPC or CPA bid.
It will ensure that you don’t overspend on your ads.
Lastly, one of the most common mistakes is not monitoring their results.
Regardless of which bidding strategy you use, it’s essential to monitor your results and make adjustments as needed.
It can help you ensure that you’re getting the most out of your ads.
How To Determine Which Bidding Strategy Is Best For Your Unique Needs
(AKA: Tips for choosing the right bidding strategy)
The first step is to identify your business goals.
Are you looking to increase brand awareness or drive sales?
Once you’ve determined which one you want, you can choose a bid strategy that aligns with those goals.
As discussed earlier, if your goal is to increase brand awareness, you should use a CPM bidding strategy.
And if your goal is to drive sales, then you should use a CPA bidding strategy.
In a nutshell, just go over the common mistakes we’ve covered earlier…
And make sure you’re not making them.
After that, you should have a good idea of which bidding strategy is best for your business.
Tips For Implementing A Successful Bidding Strategy For Your Business
Once you’ve chosen the right bidding strategy for your business, it’s time to implement it.
Here are some tips to help you get started:
Set a budget
As we’ve discussed, bidding strategies can be expensive.
So, it’s vital to set a budget and stick to it.
Monitor your result
It’s also critical to monitor your results and make adjustments as needed.
That way, you will have peace of mind that you’re getting the most out of your ads.
Test different strategies
Don’t be afraid to experiment with different bidding strategies.
It’s one of the best ways to find the one that works best for your business.
Frequently Asked Questions About Google Ads Bidding Strategies
“How much should you bid on Google Ads?”
The short answer is that it depends on your business goals and budget.
The amount you should bid on Google Ads depends on some factors, including your budget, business goals, and target audience.
“What is the best campaign bid strategy?”
Again, it all depends on what it is you want to achieve.
If you want to boost brand awareness, a CPM bidding strategy might be a good option.
However, if you’re looking for conversions or sales, a CPC or CPA bidding strategy might be better.
Bottom line: You need to understand your business, including your offer, your target market, and your competitors, to make an educated decision on which bid strategy will work best for you.
“My Google Ads campaign is not performing well; what could be the reason?”
There can be a number of reasons why your Google Ads campaign is not performing well.
It could be because you’re not using the right keywords or your ad copy is not compelling.
Perhaps you’re not targeting the right audience, or your bid strategy is misconfigured.
If you’re unsure of the problem, we recommend reaching out to a Google Ads expert for help.
In Conclusion
There you have it!
That’s everything you need to know about Google Ads bidding strategies.
We understand that’s a lot of information to take in, but don’t worry. We’re here to help!
The main thing to remember is that there is no one-size-fits-all bidding strategy; you need to find the right one for your unique business needs.
We hope this guide has been helpful and that you now have a better understanding of how to choose the right one for your business.
If you have any questions, feel free to leave them in the comments below. We’ll be happy to help!
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