What Are PPC Bidding Strategies and How You Can Use Them

PPC bidding strategies are undoubtedly one of the most crucial parts of a successful paid advertisement campaign. Choosing the right action guarantees the most return on ad spend and helps reduce the advertising budget necessary to achieve the desired results.

But to reach these goals and maximize conversions, every aspect of the PPC bidding strategy and its details must be well-thought-out and aligned with the primary objective. A strong bid strategy makes conversion efforts drastically easier and more effective. 

In this article, we will show you the main types of bidding strategies you can have and how using them can provide numerous advantages for your campaigns and activities. Ensure you follow all steps and examples carefully to create the best bidding strategy possible and make an effective ad campaign.

What Is a PPC Bidding Strategy

Bidding strategies refer to the type of bid placed in a pay-per-click auction. You can have a different strategy for each individual auction and PPC effort you do.

Every action will be based on the targets you input and what you want to achieve with that specific PPC auction. Each effort might require a different adjustment, so it is crucial to have the right PPC bid management tools when performing this kind of marketing.

But to use these bid adjustments and achieve the right strategy for each ad group, you must gather the required information, whether conversion data or historical data. Once you have what you need, you’ll be able to choose the right bidding strategy and adjust bids based on target cost, conversion value, and other important factors.

Manual Bidding x Automated Bidding

illustration comparing automated x manual PPC bidding along with elements representing each one

Another vital part of a PPC bidding strategy is understanding the differences between automated and manual CPC bidding and when to use each one of them. Here is a quick explanation of each one and their main differences:

When doing automated bidding strategies, you allow Google Ads to automatically set details like maximum CPC bid and other information based on your objectives and goal with each ad spend. On the other hand, with manual Google Ads bidding strategies, you get to decide every aspect of the campaign manually.

Manual bidding allows you to have much more control of the settings, including the daily budget used and the cost per click you’re willing to pay. The automated bid strategies are done through machine learning, and they consider multiple aspects, like the target CPA and the entire budget you have available. 

The primary information that will dictate the type of automatic bidding strategy used is your main goal. 

Importance of PPC Bidding Strategies

There are several reasons why having a solid bidding strategy is almost indispensable today for this kind of digital marketing. We know how paid advertising can generate numerous benefits for the company, and the perfect plan is the best way to achieve these goals. 

By creating bidding strategies for your PPC campaigns, you can not only make all the bid adjustments you need but also have better control over spending your money in the ads console. Whether the target impression share or any other aspect, everything can have a distinct impact on the final result, and making the correct adjustments can be a game-changer for your campaign.

Moreover, bidding strategies also help you follow a logical course of action based on your goal. More than just randomly investing in specific keywords and search terms, by having bid management and strategy creation, you can logically plan each step and maximize conversions for your website.

Types of PPC Bidding Strategies

illustration from Google ads logo along with a hammer on the right side of the image

As we mentioned before, you can have multiple bidding strategies, each with a different focus and way of working. Here we will show you some of the most common ones, whether for automated or manual bidding.

Make sure to look at each one to understand the type that best fits your campaign. With this, you increase the chances of successful results and achieving planned objectives.

Here are the main types of bid strategies:

Smart Bidding

Smart bidding strategies are the first of the three main bidding strategy groups. It is called this because it relies on Google’s artificial intelligence tools to select the best ways to optimize conversion and its associated values.

Most people associate smart bidding with the automated type, but there are slight differences between them. For example, smart bidding refers to a specific strategy Google uses called “auction-time bidding,” focusing only on conversion and conversion value. If this is what you’re looking for with your PPC campaign, this might be the best option for your business.

Automated Bidding

We already discussed this bidding type, but we didn’t mention the focus of this kind of bid and when to use it.

Auto bidding is a function-based option and, when selected, makes Google automatically analyze and set bids for your ads based on the likelihood of generating clicks or conversions that will make you achieve the desired goals. It uses little human interference on the settings and options of the campaign. Still, the automation strategy can be perfect if you want to reach a specific conversion rate or any objective regardless of cost.

Manual Bidding

Manual bidding relies almost exclusively on human efforts.

Unlike automated bidding options strategy, manual bidding doesn’t have a specific focus since you can customize and set up all aspects of your search campaigns. You can create several bid strategies based on the manual bid system. Everything will depend on the settings you use and the focus of your campaign.

Whether to maximize conversion rates or achieve enhanced CPC optimization, manual bidding can adapt to any kind of need and project. This way, it is the perfect tool for those who already know how to use Google Ads and its settings console or users with specific needs for most campaigns.

What Can Your Campaign Focus On?

illustration of two people building PPC strategies on a computer screen

As you can see, each type of bidding strategy has a different focus, and choosing the right one based on your goals is indispensable for a successful project. Here we will show you some of the main focuses your campaign can have.

Take a look at them to evaluate which one is most likely to suit your marketing efforts. This way, you’ll be able to correctly choose the course of action and PPC settings for your new bidding strategy.

Here are the main focuses and objectives your strategy can have:

Max Conversions (Target CPA)

illustration of a boy wearing a cap with a tag with the words target CPA written on

One of the most common focuses a PPC campaign could have was the target cost-per-acquisition. As of 2021, Google removed this option from the Ads console and renamed it to Max Conversions. The name is different, but the focus is the exact same.

When working with max conversions, the focus is to spend a fixed daily amount and generate as many conversions as possible for the destined CPA. Since it will work to develop the highest number of conversions possible, the search Ads console won’t differentiate the volume and value of each conversion.

This means that you can have conversions of both higher and lower CPAs. Since you can’t control these costs, maximum conversion can become a risky strategy depending on the budget available for the campaign.

Max Conversion Value (Target ROAS)

illustration showing multiple bags of money and a target with the word ROAS in the middle along with multiple graphics going up

Another category that received a name change in 2021 was the target ROAS. It is now called max conversion value and, as the name suggests, focuses on investing the budget in prospects with the highest conversion.

The main reason max conversion value is one of the most famous options is because it considers value over time. This also means that your budget will get the most out of each conversion and investment.

It balances volume and ROI so your return on ad spend has higher conversion rates and more chances of bringing positive balance to your account. It is also one of the best strategies for lead generation, especially in e-commerce businesses.

On the other hand, this type of focus can go wrong and present poor performance if you don’t have all details about your campaign aligned. It is highly effective but requires knowledge about how the Google Ads console works and your business operations.

Max Clicks

image showing Google Ads logo along with the text maximize clicks bidding strategy on the side of the image

Another commonly used bid strategy focus is click generation. It is also common to combine this action with keyword bids.

Here you can discover how much your keywords cost, and it is one of the best ways to generate results quickly for any campaign.

When going for max clicks, the Google algorithm will automatically adjust your ads to gather as many clicks as possible. The best part is that this type of focus doesn’t require any kind of conversion to work and fits almost every type of ad.

The problem with this kind of focus is that if you choose expensive keywords for your ad, you might have no conversions and low click volume. Make sure to balance how much you spend daily when setting your strategy for max clicks.

Impression Share

screenshot from Google Ads showing multiple options regarding bidding settings of the console

The last focus we will feature on the list is impression share. The name is pretty self-explanatory, and it regards strategies focused on achieving the desired impression share in a specific location.

When doing this type of advertisement, along with the location, you must specify the desired percentage goal, so Google optimizes the PPC ad to reach this goal.

It is also a great way to test if your keywords are effective and fit the campaign budget. On the other hand, it might not be the best strategy if your paid search is aiming for clicks and conversions.

Why Hiring a Professional Agency Is the Best Option

image from GamerSEO showing the multiple services provided by the company

Hiring a professional agency to do your PPC bidding strategies is the best way, and there are several reasons why. First, by hiring a professional company, you ensure your bid strategies will be taken care of by marketing professionals.

Learning each strategy and what you need to achieve the desired results take time, and working with experienced professionals increases your campaigns’ chances of success. Moreover, a professional agency can also create strategies focused on what you want to achieve and how much you want to spend.

At GamerSEO, we have the best professionals on the market with years of experience. By becoming part of your family, you’ll have total support for your bid strategy development and all aspects of your marketing campaigns, whether when doing keyword research or any other task.

Join us, and we ensure the best results for your marketing efforts. We work together to develop strategies aimed at your goals to bring successful results.

Time to Start Developing Your Bid Strategies

PPC ads are one of the most profitable practices regarding return on investment. But your bidding strategies must be well-thought-out to achieve positive results with these marketing campaigns. 

Whether working with manual PPC marketing smart strategies with machine learning or any other kind of strategy, all your campaign settings must be planned according to your goal. Details like the paid advertising aspect to focus on and the minimum  marketing budget can make all the difference.

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