Technology

When should you use automated bidding strategies in Google Ads

When should you use automated bidding strategies in Google Ads

Choosing a right bidding strategy is what makes you achieve your goal. It’s quite common to get confused when you come to the step of choosing the bidding strategy for you campaign. The first point is whether to go with manual or automated bidding strategy.

If you are new to Google ads setup and doesn’t have a much hands on experience then it’s advisable to start off with manual CPC bidding and later move to other bidding strategies.

Manual CPC bidding strategy: This is the non-automated bidding strategy where you tell Google to spend on a click by providing a bid cap.

Let’s start off with automated strategies Bidding Strategies:

Enhanced CPC: You are giving a max. bid like in manual CPC but here Google’s algorithm adjusts this bid for a keyword in individual auction based on the likelihood that the click will lead to a sale. The most common metrics to check performance in this strategy is CTR and Conversion Rate. Also, you need to check for CPC and CPA to see whether the results are profitable.

Target CPA: You must use Target CPA when you are more concerned about profitability. Here, you give a Target CPA Value and Google adjusts bids to generate as many conversions as possible under this CPA. Though individual conversions can have CPA above or below this target CPA but Google try to keep the Average CPA at your target CPA. For this bidding strategy, conversion tracking should be in place and there must be at least 15 conversions in last 30 days. The more data will be there, the better Google will make decision about conversions.

Target ROAS: In this automated bidding strategy, you’ll give your target ROAs and Google will set bids to maximize conversion value to achieve the target ROAS you have set. Like target CPA, conversion tracking should be in place with conversion value and there must be at least 15 conversions in last 30 days. A detailed guide on Google ads bidding strategies will make you more clear.

Maximize conversions: Google calls it a fully automated bidding strategy. So, here no need to set bids at any level. Google’s algorithm itself choose the bid to give you as many conversions as possible regardless of the profitability. Conversion tracking must be in place. Don’t use this strategy if profitability is your main goal.

Maximize conversion value: It’s also a fully automated bidding strategy. It’s similar to maximize bidding strategy with the difference that here Google set bids to generate as much high conversion value as possible. But again as there is no target ROAS given by you here so sometimes Google can make bad decisions. Here as well, conversion tracking must be set up with conversion value.

Maximize clicks: Maximize clicks is when Google make adjustments in bid to get as many clicks as it can. Here you can provide the max. CPC bid so that Google will keep the CPC below that. This strategy will be just to get traffic only at your page and Google is into concerned about your conversions and profitability. Never use this strategy if your goal is towards conversions and ROI.

Target impression share: you will tell Google what percentage impression share you want to achieve and provide a CPC cap as well. Use this strategy only for branding or product awareness goal. It has nothing to do with ROI or Conversion volume. Never use this strategy if your goal is towards conversions and ROI.

In Conclusion: Use automated bidding with caution

Using automated bid strategies in Google Ads is a great way to save time while leveraging algorithms to optimize an account, but only when evaluated and chosen wisely. You have to choose a right Google Ads automated bidding strategy as per your goal. You must also read a full guide on Google ads bidding strategies.

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *