Achieving your advertising objectives with Google Ads in 2024 requires careful selection of a bidding strategy.
Your bidding strategy will directly affect the effectiveness of your campaigns, regardless of your goal – generating leads or increasing sales.
The bidding strategy you select in Google Ads directly impacts the Google Ads auction, impressions, costs, and the overall effectiveness of your campaign.
Let’s explore the best bidding strategies for maximizing leads and sales in 2024.
Table of contents:
- Understanding main Google Ads bidding strategies
- Manual Bidding vs Automated Bidding
- Best Google Ads bidding strategies for eCommerce
- Best Google Ads bidding strategies for leads or signups
- FAQs
- What are the best Google Ads bidding strategies for eCommerce?
- How do I choose the best Google Ads bidding strategy for my campaign?
- When should I switch to Max Conversions with Target CPA?
- What is the difference between Max Conversions and Max Conversions with Target CPA?
- What is the benefit of using Max Conversions Value with ROAS?
Understanding main Google Ads bidding strategies
As discussed choosing the right
bidding strategy
is crucial for achieving your advertising goals, driving traffic, generating leads, or increasing sales.
Each plan is designed to achieve different outcomes, from maximizing clicks to driving conversions and maximizing conversion value.
Maximise Clicks
The Maximise Clicks strategy is ideal if your goal is to get as many clicks as possible within your budget. Google Ads automatically sets your bids to maximise the number of clicks your ads receive.
The Maximise Clicks uses automated bidding to adjust your bids in real-time for each auction, aiming to get you the most clicks for your ad spend. Unlike manual bidding, where you set bids for each keyword or ad group yourself.
Google’s machine learning algorithms dynamically set bids, which are most likely to result in clicks. This takes into account a variety of factors, such as user behaviour, device, location, and time of day, to optimize your chances of winning the ad auction.
Example:
If you set a daily budget of $50, Google Ads will automatically adjust your bids throughout the day to maximise the number of clicks your ads receive.
It might bid higher in situations where the algorithm predicts a higher likelihood of a click and lower in less competitive scenarios to stretch your budget further.
Maximise Conversions
This Google Ads bidding strategy is tailored for advertisers whose primary goal is to increase conversions.
Whether conversions mean sales, sign-ups, downloads, or any other valuable actions, this strategy ensures your ads are optimised to achieve the highest possible conversion count within your set budget.
Max Conversions with Target CPA
Within the Maximise Conversions strategy, there’s a variant known as Max Conversions with Target
cost-per-acquisition (CPA).
This approach goes beyond just driving conversions; it focuses on achieving conversions at a specific target cost that you set.
Note that when you start a target doesn’t always mean that Google will get you conversions at that rate, it can be a bit low or more but as the system learns and has more data, it will aim to get you the results as per the target you set.
Example:
Let’s say your online store sells custom sneakers and you want to acquire new customers at an average cost of $20 per sale. You set your Target CPA at $20 in Google Ads.
Google Ads will then use historical data and machine learning to adjust your bids to try and get as many conversions (sales) as possible at or around the $20 cost per acquisition.
If certain auctions indicate a higher likelihood of converting a customer at or below $20, Google Ads may bid more aggressively to secure those placements. Conversely, it might reduce bids in auctions where the conversion cost is likely to exceed your Target CPA.
Maximise Conversions Value
The Maximise Conversions value strategy in Google Ads is tailored for advertisers looking to optimise their campaigns based on the total value of conversions rather than just the quantity.
This approach is particularly valuable for businesses offering products or services with varying price points, where not all conversions are equal in value.
It is best suited to eCommerce campaigns.
Maximise Conversions Value with ROAS
When implementing Maximise Conversions Value with a focus on Return on Ad Spend (ROAS), the goal shifts from simply maximising the conversion value to maximising the revenue generated from those conversions relative to the ad spend.
Example
Let’s say you run an e-commerce store selling electronics, where you have products ranging from inexpensive accessories to high-end gadgets. Your average order values (AOVs) vary widely, from $20 for accessories to $1000 for premium devices.
Max conv. Value: Here the system will try to give you the maximum return possible based on your product’s value and historical data, meaning it may bid smartly towards the higher-value items to boost the revenue.
Max conv. Value with ROAS: Google Ads will automatically adjust your bids to prioritise conversions that are expected to yield higher revenue relative to the cost of advertising. Here you can specify I need 7x return from your ad spend and the Ads algorithm will take your input into consideration.
Manual CPC
Manual CPC is a bidding strategy within Google Ads that provides advertisers with complete control over their bid management.
Unlike automated strategies, where algorithms adjust bids, Manual CPC allows advertisers to manually specify the maximum amount they are willing to pay for each click on their ads.
As an advertiser, you set a maximum CPC bid for each keyword or ad group in your campaign. This bid represents the highest amount you are willing to spend whenever someone clicks on your ad.
For instance, if you set a maximum CPC bid of $1.50 for a particular keyword, you will not pay more than $1.50 for a single click on that keyword’s ad.
However, managing bids manually requires ongoing monitoring and adjustment to ensure optimal performance.
It’s essential to regularly review your campaign metrics, such as click-through rates (CTR), conversion rates, and cost-per-acquisition (CPA), to fine-tune your bidding strategy for maximum effectiveness.
Manual Bidding vs Automated Bidding
Understanding the difference between manual and automated bidding in Google Ads is key to making your campaigns work better.
Manual bidding means you set each bid yourself for keywords or ad groups. It’s all about having full control over how much you’re willing to spend for each click. You’ve got to keep a close eye on things and tweak your bids regularly to hit your campaign goals and stick to your budget.
On the flip side, automated bidding lets Google’s algorithms do the heavy lifting. They analyse user behaviour, device types, and the time of day to adjust bids automatically. This approach aims to achieve specific targets like maximising clicks, conversions, or your ROAS without you having to micromanage every bid.
Choosing between manual and automated bidding comes down to what you want to achieve and how much control you need. If you like getting hands-on with your bidding strategy and know your way around bid adjustments based on performance, a manual might be your thing.
But if you’d rather have Google handle the bidding based on its data insights, freeing you up to focus on other parts of your campaign, automated bidding could be a better fit.
Both methods have their strengths, so it’s about picking the one that aligns best with your campaign strategy and goals. Ultimately, it’s all about maximising your results and getting the most out of your investment in Google Ads.
Google Ads Bidding Comparison
This table summarizes the main Google Ads bidding strategies based on control, ease of use, automation level, and recommended use cases.
Each strategy has its strengths depending on your advertising goals and level of experience with Google Ads.
Best Google Ads bidding strategies for eCommerce
When you’re running Google Ads for eCommerce, you’ve got a few bidding strategies to choose from.
One popular route is starting with strategies like Maximize Conversions or Maximize Clicks. These are great if you’re just starting out and want to drive traffic or conversions without diving into the nitty-gritty of bid management.
If you’re looking to focus more on getting actual sales and optimizing your ad spend efficiently, then Maximize Conversions with Target CPA or Maximize Conversion Value are the ones to check out.
These strategies use Google’s smarts to adjust your bids to hit your cost-per-acquisition goals or to maximize the value of your conversions while considering the return on ad spend (ROAS).
Now, if you’re the hands-on type and want full control over how much you’re bidding on each product based on their range and prices, Manual Bidding might be your jam.
It lets you set bids tailored to different product categories or specific items, giving you the flexibility to adjust based on what’s working and what’s not.
Whether you’re starting small or aiming for precision, there’s a bidding strategy in Google Ads that fits your eCommerce goals. Just pick the one that matches how you want to manage your budget and see those clicks turn into sales.
Bidding transition for eCommerce
When starting with Google Ads for eCommerce, it’s important to follow a strategic approach to bidding.
Step 1: Start
Initially, you might want to get as many clicks a possible and let the system learn and you can use Max Clicks, and Manual CPC to achieve it in the best ways possible.
Once the system learns, advanced automated strategies can be used to optimise performance.
If you want greater control over your cost per click (CPC) then you may want to use Manual CPC and continue with the same later on too.
Step 2: Boost conversions
Once you have success of getting tonnes of clicks and decent conversions (Roughly 10 to 15) then can use automated bidding like Max Conversions with a target CPA.
Step 3: Take revenue to the next level
By now you should have a good conversion history and it’s time to boost the revenue and take the campaign to the next level.
You can use Max Conversions Value with ROAS or let the system give you the maximum return possible using Max Conversions Value.
Best Google Ads bidding strategies for leads or signups
Choosing the right Google Ads bidding strategy is essential for businesses aiming to generate leads or signups.
Each strategy offers unique benefits and targets specific goals, such as driving more traffic to your site or increasing conversions.
Understanding when to transition between strategies as your campaign progresses helps optimize ad spending and improve results.
This ensures you’re using the most effective strategy at each stage to maximize your return on investment.
Bidding Transition for Leads
When adapting your bid methods as your campaign progresses, you will more effectively achieve your lead-generation goals.
Step 1: Start with Max Conversions or Manual CPC
If you are just starting your campaign or want to increase initial traffic, begin with Max Clicks or Manual CPC.
Max Clicks concentrate on increasing traffic to your landing page, while Manual CPC allows you to set your bids to achieve the desired clicks, CTR and conversion target.
Step 2: Switch to Max Conversions with Target CPA
Once you have enough conversion statistics, switch to Max Conversions with Target CPA.
This approach aims to maximise conversions while keeping the cost per acquisition (CPA) within a specified range.
Google Ads automatically adjusts your bids to achieve your desired CPA, ensuring you get the most conversions possible without exceeding your budget.
Step 3: Use Max Conversions without Target CPA (If No Value Assigned for Leads)
Leave the campaign with Max Conversions without a target CPA unless they have a value assigned for leads.
This allows the campaign to focus on generating the maximum number of conversions without being constrained by a specific CPA target.
Step 4: Consider Manual Bidding for Greater Control
If you prefer greater control over your bids and want to manage your campaigns strategically, manual bidding can be a wise choice. With manual bidding, you set individual cost-per-click (CPC) bids for specific keywords or ad groups.
This approach allows you to allocate your budget more precisely based on performance data, ensuring more funds go towards high-performing keywords.
Although manual bidding requires more hands-on management, it offers the flexibility to fine-tune your spending for optimal results.
Step 5: Continuously Evaluate and Adjust Bidding Strategies
Switching between these strategies based on your campaign’s performance data and effectiveness allows you to continuously improve lead generation with Google Ads.
Each strategy offers different levels of automation and control, enabling you to tailor your approach to meet your business’s specific needs and goals.
By regularly evaluating and adjusting your bidding tactics, you can optimise your ad spend and achieve better results over time.
FAQs
What are the best Google Ads bidding strategies for eCommerce?
Max conv and max conv value are the best bidding strategies for eCommerce. If the budget is too tight or you need greater control, consider manual CPC.
How do I choose the best Google Ads bidding strategy for my campaign?
Choosing the best bidding strategy depends on your specific goals. If you aim to increase traffic, consider Maximise Clicks. For boosting sales or sign-ups, Maximise Conversions or Max Conversions with Target CPA might be more suitable.
When should I switch to Max Conversions with Target CPA?
Switch to Max Conversions with Target CPA when you have sufficient conversion data (at least 30 conversions in the past 30 days) and your primary goal is to achieve as many conversions as possible within a specific cost per acquisition (CPA).
What is the difference between Max Conversions and Max Conversions with Target CPA?
Max Conversions aims to get the highest number of conversions within your budget. Max Conversions with Target CPA goes further by optimising to achieve conversions at a specific target cost per acquisition.
What is the benefit of using Max Conversions Value with ROAS?
The benefit of using Max Conversions Value with ROAS is that it optimises ad spending to maximise the total conversion value while ensuring a specified return on ad spend, effectively balancing revenue generation and cost efficiency.
