The Top 5 Google Ads Bid Strategies

Sorry to break it to you but there is no top 5, it’s all case by case. Anyone that tells you otherwise is an idiot and deserves to get the cold Greggs sausage roll that’s been sitting in the cabinet for a few hours. We will, however, be providing a list of the top Google Ads bid strategies alongside the pros and cons for each. These are in no particular order, we just wanted to showcase a vast range and throw in a few curve balls to keep you on your toes.

List of the top 5 Google Ads bid strategies:

1. Manual CPC (the old codger)
2. Enhanced CPC (the 50 year old uncle still partying like a 30 year old)
3. Target CPA ( the reserved aunty who is loaded but never has their wallet)
4. Target ROAS (the hip kid people want to have around)
5. Maximise Clicks (the dude who can do a rubix cube in 18 seconds)

Back when Google ads had less fluff, we always used manual CPC, max conversions, or target impression share. Nowadays, Google is being more hesitant with sharing data we’ve got to be really onto it with choosing our bid strategies and knowing when to make adjustments. Let us first now introduce you to Manual CPC.

Manual CPC (Cost Per Click)

Pros:

– Full Control: Allows precise control over individual keyword bids.

– Flexibility: Ability to adjust bids based on performance insights and business objectives.

– Budget Allocation: Allocate budget to high-performing keywords or ad groups as needed.

Cons:

– Time-Consuming: Requires ongoing monitoring and adjustment to optimise performance.

– Complexity: Managing bids for multiple keywords or ad groups can be challenging and labor-intensive. The reality is, you don’t know more than Google so be careful.

– Risk of Overspending: Without careful monitoring, there’s a risk of overspending on underperforming keywords.

Enhanced CPC (ECPC)

Pros:

– Automated Optimisation: Automatically adjusts bids based on the likelihood of conversion happening.

– Performance-Based: Bids higher automatically for clicks more likely to lead to conversions.

– Time-Saving: Reduces the need for manual bid adjustments while still offering some level of control.

Cons:

– Limited Control: Less control over individual keyword bids compared to manual bidding.

– Cost: May result in higher CPCs, particularly if conversions are not accurately tracked.

– Learning Period: Requires a slightly longer learning period to optimise bidding based on historical data.

Target CPA (Cost Per Acquisition)

Pros:

– Goal-Oriented: Sets bids to achieve a target cost per acquisition or conversion.

– Automated Optimisation: Adjusts bids in real-time to meet the desired CPA goal.

– Efficiency: Maximises conversion volume while maintaining a specific cost target.

Cons:

– Data Dependency: Relies heavily on historical conversion data to optimise bidding effectively. If you set your target wrong, you can miss out on a lot of volume.

– Conversion Tracking: Requires accurate conversion tracking to measure performance and adjust bids. Please don’t track button clicks as a conversion or that’s what it will go after.

– Limited Flexibility: Less flexibility in budget allocation compared to manual bidding.

Target ROAS (Return On Ad Spend)

Pros:

– Revenue Focus: Maximises revenue by setting bids based on the desired return on ad spend.

– Automated Optimisation: Adjusts bids to achieve the target ROAS goal, optimising for profitability.

– Performance-Based: Prioritises bids for keywords with higher revenue potential.

Cons:

– Data Requirements: Relies on accurate revenue tracking and conversion data to optimise bidding. More accurate data usually equals better results.

– Complexity: Requires a clear understanding of profit margins and revenue goals to set an effective ROAS target.

– Risk of Overspending: May result in higher costs if ROAS targets are too aggressive or inaccurate. However, you will have likely driven incremental revenue at your target so it’s not all bad.

Maximise Clicks

Pros:

– Automatic Bidding: Automatically sets bids to maximise the number of clicks within a specified budget. But who wants just clicks?

– Time-Saving: Reduces the need for manual bid adjustments, allowing focus on other campaign optimisations.

– Budget Control: Helps ensure full utilisation of the budget by maximising click volume. However, once again, clicks don’t mean a lot if nobody converts?

Cons:

– Lack of Conversion Focus: Prioritises clicks over conversions, which may not always align with business objectives. Our point exactly.

– Limited Performance Tracking: Doesn’t optimise for conversions or revenue, potentially leading to lower ROAS.

– Risk of Click Fraud: May attract low-quality clicks or invalid traffic without proper monitoring and filtering.

Conclusion:

So now you can know the Top Google Ads Bid Strategies. Each bidding strategy in Google Ads offers unique advantages and challenges. By understanding the nuances of each approach and aligning them with specific campaign goals and objectives, you can optimise bidding strategies to maximise ROAS and drive the results you’re optimising towards, please just ensure you’re using the right one.

If you need assistance with optimising your paid search campaigns, our team at The Ad Lounge is here to help. Contact us today to learn more about our services and how we can support your Google Ads efforts.