Understanding All Of The Different Smart Bidding Strategies

When determining your Google Search Campaign’s goals, it is important to understand the different bidding strategies available to you in the interface. In this blog we will cover multiple bidding strategies from manual to smart bidding and how each one performs differently.

What is bidding in Google Ads?

Bidding in Google Ads is setting out how much you are willing to pay for an ad click. There are a several different types of bidding such as manual, automated (machine learning) and smart bidding.

How does bidding work?

Bidding goes through an auction to determine what the cost of the click will be. Once a query is made on a Google search, the search engine processes the request and runs the auction, which will then determine the ad positions and each advertisers’ CPC. Ad positions can be determined by quality score. Quality score is a factor in determining your ad’s position on a Google search. Learn more about quality score here.

There is manual bidding and automated bidding. With manual bidding, you set and control how much you are willing to pay on a click. Automated bidding, on the other hand, is using Google’s machine learning abilities to determine the appropriate cost per click based on your goals.

Enhanced CPC is a manual bidding strategy and works by automatically adjusting your manual bids for clicks that seem more or less likely to lead a sale or conversion on your website.

What is smart bidding?

Smart bidding uses conversion tracking and historical data from your google ads account to drive your goals based on your smart bidding. The different smart bidding strategies are as follow:

• Target Cost-Per-Action – This smart bidding strategy sets bids to help get as many conversions as possible at or below the target cost-per-action you set. If you set your cost-per-action at $12 per action, this strategy will drive as many conversions as possible at that CPA.

• Target Return-On-Ad-Spend – This helps you get more conversion value or revenue at the target return-on-ad-spend you set. This strategy is valuable for shopping campaigns where you can determine your R-O-As.

• Maximize Conversions – This strategy automatically sets bids to help get the most conversions within your budget. This is valuable if your goal is to drive as many conversions to your site.

• Maximize Conversion Value – This strategy maximizes the total conversion value of your campaign within your specified budget. Something to note is you can change the value of your conversions in Google Ads.

While there are many smart strategies too choose from, you should select one that is based on your advertising’s goal. Here at Aronson Advertising we can help you reach your SEM goals! Contact us today online or by calling (847) 297-1700.