Google Ads Bidding Strategies and Hacks To Fuel Growth In 2022
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Selecting the right Google Ads bidding type and executing a solid strategy for adjusting bids is crucial to driving your ad costs down. If you are not aware of what you’re doing, you might end up wasting your whole budget on just a few clicks. But while making the right moves, you can take your campaign performance to a new level.
Only changing the bidding strategies will lead to an increase in conversions of up to 142.86%.
In this post, we’ll walk you through some of the different kinds of Google Ads bidding strategies, and some tips and tactics.
How does Google Ads bidding work?
Google gives you an abundance of ways to bid for ads relying on what your end goal is. Many advertisers aim on clicks, conversions, impressions or views (for video ads).
Each time Google has ad space available on a website within the search network or search results, it runs an auction. The auction determines which ads will be displayed at that moment in that space. Your bid puts you in the auction. Sounds easy, but there’s a lot of significance. Understanding those significances is the best way to become a better bidder.
Relying on your business’s goal, there are different ways to bid for your ads. Below we’ll briefly break down some tips and tricks so you can select which bidding strategy best suits your business goals.
Tips and tactics for Google Ads bidding
Bid adjustments
Do you know that all devices, time of day, days of the week, and geographic locations perform differently?
By Google Ads, you can function reports depending on those metrics and see where it might make sense to increase or decrease bids based on performance.
You can go to the devices tab and segment your campaigns or ad groups to see individual device performance.
Seasonal trends
Based on the time of year, your Google Ads performance will change if you’re owning a seasonal business. This means that your conversion rates might go down and your cost per conversion might go up.
The opposite might also take place, like say, during the holidays. If your conversion rates are much higher than they used to be, you have a reason to bid strongly and capture as many conversions as possible. But as soon as the holidays, when that performance doesn’t continue, your bids must reflect that change.
Remember this as you’re looking at your account for yearly seasonal trends and determining how to best position your bids to meet these needs.
Different keywords, different offers, different margins
Have you ever split tested (opens in a new tab) your landing page offers?
If yes, then you might know how much of a conversion increase (or decrease) you can expect. And when that takes, your sales/closing rates enhance or worsen too.
Like average order values for eCommerce sites, various keywords bring in different margins and dollar values.
It’s necessary to stay away from a “blanket bid” mentality. Not all keywords must be held to the same bidding goals.
While you keep testing new offers, focus your eyes on what changes (like time to close, and sales/closing rates) after the initial lead is captured.
The different kinds of bidding strategies include:
01Target CPA (Cost Per Action)
The goal of Target CPA is to help you gain as many customers converting at or below the defined cost per target. For instance, if you are ready to invest $4 in selling your dog grooming services valued at $60, Google will hunt to get as many clients converting at $4 (or below) as possible.
If you are selling $50 T-Shirts online and you’re only ready to pay Google a maximum of $5 per sale – Target CPA is a good bidding strategy to utilise to make control and profitability.
02Target ROAS (Return On Ad Spend)
Target ROAS is everything about getting your bids to gain your revenue goals. ROAS bidding strategies are best fitted for businesses who have already run a conversion campaign. It is because Google likes to use some historical data. Make sure to discuss this with one of our trusty Google Ads experts about when you’re thinking of using this little number.
03Maximise Conversions
Maximise Conversions strategy takes a bit of behavioural insight and uses it to get you the optimal number of conversions for your Google Ads campaign.
While sticking into our dog grooming scenario, historical data may display that people seeking for dog groomers are on android devices searching and booking services between 9am and 10:30 am, Monday to Friday. With maximising conversions as the focus, Google may use this information and spend your daily budget at those times when the opportunity appears.
If you’re ready to spend say $5000 ad budget and want to get the huge amount of leads irrespective of the cost per lead (because the profit per lead potential is high) – then maximise conversion is a good strategy.
04Maximise Clicks
The goal with Maximise Clicks is to get as many clicks on your ad within your budget. It’s everything driving traffic to your website where, hopefully, customers will be certain to take action.
Google may tend to give the most striking spots to ads, products and keywords that are more likely to be clicked against the others.
Maximise Clicks can be utilised as a stand-alone bidding strategy or as part of a Portfolio bidding strategy.
05Manual Cost-Per-Click (CPC) Bidding
Manual CPC bidding is excellent if you want to set exactly how much you are ready to pay for a click. This bidding strategy enables you to distribute your ad spend depending on the success of keywords.
When you’re new to Google Ads, manual bidding can be horrifying. But with a little know-how is a great way to get optimization happening.
06Cost Per Thousand Impressions (CPM Bidding)
The focus here is visibility on Google’s Display Network. This is far from the search network (including Google search and Google images). The positive side of CPM bidding is you only pay when your ad stays visible for a set period of time – the exact time changes between video and static ads.
07Cost Per View Bidding
You will have to consider the Cost Per View bidding strategy, if you’re running a video ad campaign.
This strategy means that you will have to pay when people view or interact with your ad. Your ads will be displayed before other YouTube videos for at least five seconds, but you actually don’t have to pay until someone watches more than 30 seconds or clicks on your ad.
