Let's understand the Google Adwords bid strategy based on your goals.
The main purpose is to go in deep of all bidding strategies. Once you understand properly then it will become easy for every user to make his own Google AdWords campaign with good success rate.
To understand the Bid Strategy in a deeper way
You have to go through your goal once which means
Why you are starting your campaign?
What is the goal of your Bid Strategy?
Ask these two questions to yourself when you are going to start a campaign on Google Adwords.
Let’s discuss some of the basic Goals so that we are able to understand and the thing about Bid Strategy.
Google Adwords Goals:
- Get Customer to your website for conversions. This means you are going to sell your product or service. This clearly shows our Goal for Sales.
- If you want to generate only traffic then you must choose Cost-per-click (CPC). This bidding may be right for your strategy.
- Brand Awareness- That means you only want to aware people about your brand. Then impressions strategy is good for you. In this case, you have to pay on impression per thousand.
- For Video Ads –That means you want to Increase Views or Subscribers to your videos. In this case, you can use CPV that is Cost per view or CPM that is Cost per thousand. CPM is defined as pay per thousand views (Impression) on GDN – Google Display network.
- In video Ads – Your goal may be increased product and Brand Awareness. So in that case use CPV – Cost per View.
Now let’s talk about Smart Bidding
Smart Bidding is a process of Automated bid strategies that use Machine Learning to optimize bids. The machine learning
algorithm is based on a mathematical model. Usually, it is a subpart of Artificial Intelligence. This smart bidding strategy is also known as Auction-time bidding.
It covers the device of users, Locations, languages, etc.
To understand Smart bidding in more deep Google has divided it into four strategies.
If you got some idea about the Goal of your marketing campaign then it will become easy for you to understand the Google Adwords Bidding Strategies.
1.Target CPA (cost-per-acquisition):
Google Ads Smart bidding strategy that set your bids for getting more and more conversions. In the above paragraph, we have talked about machine learning. This CPA strategy is based on that. If you are going to use this I personally suggest you set up conversion tracking first. You can track multiple kinds of conversions by setting up. Refer to Google Article
to set up conversion tracking.
Or visit youtube video by Google Ads Official channel video:
For example: If I choose $10 CPA then Google ads will try to get me the conversion at $10 on average. But that does not mean you choose the lowest amount in CPA. If you do so you may be in a disadvantage. So choose your CPA according to the genuine amount.
2. Target ROAS (return on ad spend):
This is also automated bidding strategy. To use Target ROAS bid strategy, you need to set up conversion tracking first. This is mandatory.
The requirement for Use Target ROAS:
- For search and Display – Your Campaign that you are running must have 15 conversions in the last 30 days.
- For shopping campaigns–20 conversions in the last 45 days.
But as per Google recommendations to make proper use of machine learning algorithms you must have 50 conversions in the last 30 days. For App campaign, you need at least 10 conversions every day and 300 in 30 days.
This is only to provide the machine learning algorithm maximum data to perform the bidding decisions in a better and right way.
Note: All the Statistics are taken from Google Support account.
In your Campaign – Bidding section add the value 500 %. This leads to your automatically adjustment of your bids to maximize your conversion value.
The field is shown below screenshot:
The value works in a mathematics formula:
Conversion value ÷ ad spend x 100% = target ROAS percentage
For example: if you have a store and the product total is $5 in total after all things. Means Grand Total $5.
And you are paying the $1 for each ad.
Means for every $1 your revenue is $5. Then in math:
$5 in sales ÷ $1 in ad spend x 100% = 500% target ROAS.
3. Maximize Conversions:
This bid strategy works same as above but in the budget it will spend your entire budget.
4. Enhanced cost-per-click (ECPC):
It is also works for maximizing conversions from manual bidding. As the name itself says the word Enhanced CPC. Means your budget will automatically be managed to your set max budget.
Keeping more simple ECPC bid strategy try to keep your CPC to average.
5. Maximize Clicks:
This is automated bid strategy which works to get max clicks with your daily budget.
6. Manual CPC bidding:
This lets you to set different bids for each ad group or for individual keywords. By this, if you analyze properly your campaign. And your keyword is performing well then you can go for that keyword for the rest of your campaign.
7. Target Search Page Location:
This bid strategy increase our bid chances to appears on the top of all ads.
8. Target Outranking Share:
This bid strategy works on the domain out ranking. Which means if you have a specific domain that you want to push down to your ad. Means your ad will display above your competitor ad or above the ad of your entered domain.
9. Cost per thousand Impressions (CPM):
With this you will pay based on impressions. That means the number of times your ads are shown. The platform may be YouTube or the Google Display Network.
10. Cost-per-thousand viewable impressions (vCPM):
This is the case when some of the advisers do not bother about click on ads. It means they are willing to pay per impressions.
It lets you pay for each 1,000 viewable AD Impressions on the Google Display Network.
Cost Per View (CPV) Bidding:
(This is for Video Ads) –In this strategy you will only pay for Trueview on your video ads. In this strategy, views are mainly counted as the clicks on call-to-action overlays, cards, and companion banners. Also, A view is counted if someone watches 30 seconds of your video ad. To go in details about views or impressions on Video I suggest you refer the article - https://support.google.com/google-ads/answer/2375431