Developing an effective bid strategy is one essential aspect of your Pay Per Click (PPC) advertising campaign.
Google offers ‘smart campaigns’ but devising a click-and-go advertising campaign that actually works is still a fantasy.
So, having success with your bidding largely comes down to your strategy.
Of course, bid strategies are more complex than years ago and there are more features to consider.
As much as Google tries to make our lives simpler with bidding, you will still need to do your research.
Below is more information about bid strategy and when to increase your PPC bids.
The perfect way to begin your Google Ad bidding journey is to use everything Google puts at your fingertips.
And that starts with the Keyword Planner.
This wonderful free tool will help you find new keywords you didn’t consider – and it gives you a suggested bid based on how you set your advertising account.
Many experts recommend beginning viewing by looking at every keyword’s page 1 bid. Then maybe increase it by 25% to get to the middle of the page.
This will ensure your PPC ads are more visible but aren’t at the top of the heap (which will greatly increase your ad expenditures).
Let’s take a close look at several of the most popular bidding strategies:
This is a popular Google Ad bidding strategy that can boost your conversions while focusing on a specific desired result on the home page. If your goal is to reduce costs to generate more sales, Target CPA is a worthwhile choice.
That keyword that costs less per click doesn’t always mean it’s superior to one with a higher CPC.
Additional site traffic at a lower CPC will not necessarily net your firm more money.
Return on Ad Spend is also a great bidding strategy that will help you reach the desired ROI.
With ROAS, you set your eyes on a certain dollar amount from total sales and not how many items your customers purchase. This is a useful method for products that cost more.
ROAS will adjust your bid strategy automatically and is based on your desired outcome or goal. Google will utilize conversion data from old campaigns to estimate possible conversion chances in the future.
This is an automated Google Ad bidding strategy. It means the site uses AI to increase conversions and their values in your marketing campaign. Google looks at signals during the auction, including OS, device location, time of day, and more to boost your conversions.
Many marketers say Maximize Conversions can be best if you already have some conversion history in the books. But it’s not essential. Note, however, that this method could increase your costs a lot if the average spend is below the average daily budget.
This is like maximizing conversions is similar to Maximize Conversions. But the focus is on clicks, obviously. This can be what you want to drive prospects to your new website, so it works well for building audience and brand awareness. If your site doesn’t have conversion tracking set up, this strategy will set ad bids to get as many clicks as possible.
It’s generally considered prudent to raise your bids when you can net the most profitable traffic from the keyword. And you should probably lower your PPC bid when you can get traffic that converts but it’s too expensive.
Some additional factors regarding when to raise and lower bids:
Further, if your company goal is to reduce your cost per action or CPA, you should allow the keyword-level CPAs to tell you when to raise or lower your bids. Naturally, what you do will be different based on the keyword, but here are some guidelines:
If the CPA for a keyword is below your goal and is showing a lower ad position, many say to increase the bid. This boosts your ad higher on the page. Then, you have better advertisement visibility and additional clicks and conversions.
However, if the keyword has a higher CPA and is still in a top position, think about lowering the bid. Fewer conversions will be the result but it will reduce your CPAs.
Now that you know when it makes sense to raise your ad bid, let’s review how you figure out which bid strategy is best:
Establishing a Google Ad bidding strategy and knowing when to increase or decrease bids is complex.
That’s why many growing companies turn their PPC advertising strategy and campaign to a skilled and experienced contractor.
Need help with Google Ads management? Contact us, we can help!