Google Ads Bidding Strategies: You Need To Know

When developing a Google Ads bidding strategies search, display, or video campaign, selecting a types of bidding in Google ads that aligns with the overall goal of the campaign is critical to ensuring the campaign is successful in achieving results. 

While Google Ads currently offers over 10 unique Google ads bidding strategies 2021 that can be applied to advertising campaigns, this article will focus on the most common, and often most effective strategies for advertisers looking to maximize their campaign’s impressions/reach, click traffic, and website conversions. 

Before launching a new campaign, an advertiser must first identify the overall goal of the campaign and what KPIs campaign success will be measured by. 

For example, if the main goal of the campaign is to drive website traffic to the advertiser’s landing page, Maximize Clicks, Manual CPC, and Enhanced CPC bid strategies are likely the best options to choose from to maximize website traffic and/or achieve the lowest possible cost-per-click (CPC).

Read Also: The Best PPC Bidding Strategies in Malaysia Market

What Is The Bid Strategy?

Google ads bidding strategies explained tailored campaigns designed in Google Ad Words to help you accomplish certain goals. Depending on what your target audience is, you can focus on getting higher click rates, impressions, or conversions.

Google Ads offers several bid strategies that are tailored to different types of campaigns. Depending on which networks your campaign is targeting, and whether you want to focus on getting clicks, impressions, conversions, or views you can determine which bid strategy best practices are best for you.

Your automated bidding Strategy is a goal for your campaign that is used to automatically optimize which impressions to prioritize, and how aggressively we bid. For example, a goal could be to maximize the total number of Conversions, Clicks, or Impressions. Or, you can set a specific target cost-per-acquisition (CPA), cost-per-click (CPC), or cost-per-1,000-impressions (CPM).

Can You Do Your Own Bidding?

Manual cpc bidding strategy is a bidding method that lets you set your own maximum cost-per-click (CPC) for your keywords. With manual bidding, you only pay when someone clicks on your ad, not just views it.

Pros :

• Manual CPC bidding gives you control to set the maximum amount that you can pay for each click on your ads.
• The most granular control you can have over keywords in your campaign

Cons :

• Time consuming

Potential for worse outcomes due to not using Google’s plethora of data on user behavior to drive bid calculations It takes experience and deep knowledge of Google to make the campaigns effective, thus making it a bit difficult for new users

Doesn’t take Google’s machine learning into account when trying to find users who are most likely to convert on your offer.

How Does Bidding Work in Google Ads Malaysia?

Google gives you a multitude of ways to bid for your ads, depending on what your end goal is. Most advertisers focus on clicks, impressions, conversions, or views (for video ads).

The whole system basically starts with a query or keyword. When someone searches for something on Google, the search engine queries its advertisers looking for a keyword match within its ad groups. If one or more advertisers are bidding on the keywords that Google deems relevant to the search query, the auction begins.

How Do You Choose Keywords To Bid On?

If there’s one step that can’t be overlooked when setting up your campaign, it’s selecting keywords for smart bidding. Keywords make or break a PPC campaign because they determine who sees your ad and who doesn’t. Even the most clever paid ads will fail if they don’t get in front of the right people.

How to change bid strategy Google ads? Choosing keywords wisely ensures your audience is well-targeted, relevant, and that your budget is put to good use. These 4 steps are all you need to choose the best keyword to bid on.

Brainstorm 

The first step in choosing keywords for any campaign is to brainstorm a big, long list of potential terms. Your list should be based on the landing pages the ads will link to. The key is to get inside your customer’s mind.

What are they searching for? How do they phrase search queries? What are they typing into that magic Gogglebox when they’re looking for your product? Don’t forget to include synonyms that customers might use instead of another word and alternate spellings.

Choose Local Search Keywords

With so many searches happening on mobile devices, these queries bring you even closer to an actual sale. If you have a brick & mortar location, local search keywords will draw the most engaged and relevant audience to your site and your store, because searchers are literally right down the road from you.

Keep local search in mind when creating and refining your list of keywords. Be sure to include terms that relate to your street address, neighborhood, and town.

Think About Relevance

The key to determining how relevant a search term is to consider the searcher’s intent.

For example, if your industry has strong brands, then search traffic around competitor terms may not be relevant enough to include. Users who search explicitly for a particular brand like Nike shoes are probably not interested in buying from Puma.

Depending on the type of content your ads link to, you’ll want to target terms that indicate a particular time in the buyer’s journey. If your ad is for a blog post called “What Characteristics Make a Great Running Shoe,” then target users early in the cycle. For product-specific landing pages, you want to get in front of people who are ready to make a purchase.

Consider Competition And Cost

By now, you should have a decent-sized list of keywords that have been refined to reflect what your business really does and what your customers really search for.

This list is your ideal campaign. However, now you need to consider the competition for these keywords and how much you’ll have to spend to actually show up for them.

This info will help you determine which terms are worth spending your budget on and which ones are just a pipe dream that will chew through the budget with little return. Once you have cost and competitive data, you can eliminate overly competitive and high-cost keywords from your list.

What Is An Optimal Bid?

The optimal bid is determined by maximizing expected profit, given the underlying seller costs of the bid items and a computed probability of winning the bid as a function of price and other bid features such as buyer characteristics and the degree of competition. 

An entropy-based information-gain metric is used to quantify the contribution of the extracted features to predicting the win/loss label. A naive Bayes classification model is developed to predict the bid outcome (win or loss) as a function of these features. 

This model naturally generates the win probability as a function of the bid price required to compute the optimal price. Results obtained by applying this model to a database of bid transactions involving computer sales demonstrate statistically significant lift curves for predicting bid outcome. 

A method for creating additional synthetic bids to improve computation of the win probability function is demonstrated. Finally, the computed optimal prices generated via this approach are compared to the actual bid prices approved by human pricing experts.

Read Also: Revenue Focused Bidding And Its Function To Your Ads

Is Overbidding A Dominated Strategy?

Maybe you have ever thought about how to change bid strategy Google ads. Keeping your Google Ads in the top position can have a huge impact on the success of your PPC campaigns overall. 

The average CTR for Google Ads ads drops significantly between the first three positions, so to make sure you’re getting the best results from your ad spend, it’s important to aim high by bidding enough to ensure that your ads win the best positions.

However, there is such a thing as bidding too high, and overbidding can be a major drain on your advertising budget. 

By taking steps to ensure that your bidding strategy is aggressive enough to keep your ads in high-performing positions, but not so aggressive that it eats up your budget too quickly, you can help stretch your ad spend and improve the performance of your campaigns in the long run.

Conclusion 

When launching a new campaign on Google Ads, choosing the perfect bidding format isn’t easy. There are tons of options to pick from, and if you don’t have experience with each, the decision could make or break your campaign. Before selecting a bidding option, assess your goals.

Do you want better brand awareness? Website traffic? Direct sales? Each of these will generate different bidding strategies for best results.

Advertise with Ginee Malaysia

Have you ever wondered how to advertise on Google Ads, and how much it will cost you? Of course, you want to expand your business and you are ready to pay more. But you did not have the knowledge on how to start advertising with Google ads.

Good news for you! You can use Ginee Malaysia services to advertise your products on Google ads without worrying so much about the outcome of the advertisements. You can sit back and relax.

Register Here for free to be part of Ginee-us!