Bidding strategy definition is how your money is used to display your PPC ads. How you choose PPC bidding strategies depends on a number of factors including the platform, the actual ad itself, your marketing goal and your budget.

Read also: Google Ads Bidding Strategies: You Need To Know

Bidding strategies are broken up into three core families:

  • Smart bidding: Conversion-based.
  • Automated bidding strategy: Function-based.
  • Manual CPC bidding strategy: Human-based.

Now, take a look at each of the bidding strategies with it’s advantages and disadvantages below.

Target CPA

Target CPA aims to use the specified daily budget while getting as many conversions as possible with the requested CPA. Target CPA also used as a bidding strategy Facebook.

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If someone clicks on your ad but doesn’t get conversions, you won’t pay. However, optimizing your ads for successful conversions is usually very different from ads that are optimized for clicks and impressions. 

The target CPA is ideal for situations where you are setting the maximum cost per conversion required to prevent your customers from reaching the break even point and losing money on conversions. 

The algorithm behind the target CPA has one goal. That is to get the maximum number of conversions available at or as close to the price points you entered. If your campaign is running within your budget, performance can be very poor because the algorithm doesn’t take this into account in your bids. 


  • Pay only when actions such as downloads and sales inquiries are completed. 
  • Designed to increase engagement and ideal for bottom-level marketing (BOFU) in the goal achieving process. 
  • Google no longer requires the set number of conversions in 30 days to run.


  • Conversion values ​​are the same, so you may need to create more campaigns (with a clear budget) for some of your business based on margins.
  • The volume of will be adversely affected as the ad network bypasses potential prospects to get conversions at the desired CPA.
  • Depending on other settings (budget, goals, etc.), this strategy is at high risk of undercuts / spending and can only be used reliably after a long run of the campaign.

Target ROAS

If you’ve been running an online advertising campaign for a long time, you can use this PPC bidding strategy with the most successful keywords. This Google Ads bidding strategy uses data from historical campaigns to predict return on investment. 

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Since historical data is used, you may already know which keyword is best for you. So it may make sense to switch to ROAS. Of course, you need to be using conversion tracking, so this is great for sales and other conversion-based Google Ads bidding strategies. 

The goal of target ROAS (return on ad spend) bidding strategy is to invest your budget in potential customers who are most likely to turn to the highest value. 

Google’s target ROAS bid is actually a very flexible strategy that allows you to target single or multiple campaigns. For Google, using target ROAS for bidding allows Google to perform tricky operations such as conversion rates (as specified). 

Google typically suggests an overall ROAS for a particular campaign based on performance data from the past few weeks.


  • Budget is invested in the best place to balance volume and ROI. Allows for more seamless reporting by adding profits to the equation.
  • Hundreds of conversions are no longer needed and are now accessible to both potential customers and e-commerce.


  • Requires business knowledge to determine conversion values-which can be an obstacle to new businesses. It cannot be used immediately because it requires conversion.
  • If the ROAS goals, budgets, and keywords / targets do not match, then this strategy is too few or too many.

Target Impression Share

This relatively new automated bidding strategy for Google Ads is a convenient way to display your ads. Advertisers can set target percentages and budgets before choosing how to display impressions. 

The positioning options are: top of page, absolute top of page, anywhere on the page.

The goal of target impression share is to achieve the desired percentage of possible impressions at the desired location within your budget. 

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If your ad is placed correctly, you will have the opportunity to click or view your ad multiple times at the set price. As always, there’s no guarantee of conversions or clicks, but it’s a cheap way to get your ads to the top. You can try these bidding strategies in construction web.


  •  High-percentage (branded) campaigns can be run by “autopilot”.
  •  Find out if the desired keyword concept fits your budget.
  •  Mobile-oriented campaigns help achieve the ideal placement (1st place).


  •  Not focused on clicks and conversions.
  •  Danger of waging war on unproven conditions.
  •  Keyword / target misalignment can result in low or low volume.

Maximize Conversions

The Maximize Conversions option is suitable if you have an account with high performance but room for growth. If you’ve already got the maximum number of impressions you can, this strategy won’t have much of an impact.

There are two options for running a campaign this way. Choose a different bidding strategy or set your daily budget to the points you want to spend enough in your day. 

The new strategy aims for maximum conversion values. Machine learning algorithms focus on users and set bids that are likely to generate the most revenue without meeting CPA or ROAS goals. 

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

If you are running an e-commerce campaign and have a limited budget, it is recommended that you try this instead of Target ROAS due to performance issues with your targeting strategy and budget constraints. 


  • Balance volume and value.
  • Ideal for continuous growth if the conversion value is the same.
  • No conversion threshold is required.


  • This strategy miscalculates your budget if conversions don’t work the same way, or if double counts occur.
  • The budget is used without considering ROAS (Return On Ad Spend).
  • If you have not set a conversion action, you will not be able to execute the strategy.


Types of bidding in Adwords that suit the best for you depends on your ad strategy in general. After knowing the advantages and disadvantages of those bidding strategies, you must know which are better for you. 

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