After you have done all the basic campaign settings, it’s time to think about what is the bidding strategy for your ads. There are several bidding strategies that Google offers:
- Target search page location
- Target CPA (cost per acquisition)
- Target ROAS (return on ad spend)
- Target outranking share
- Maximize clicks
- Maximize conversions
- Manual CPC
- Enhanced CPC
Which strategies are effective or recommended by Google Ads experts?
According to the Udemy course, the instructor highly recommended the three most effective bidding strategies: Target CPA, Enhanced CPC, and Manual CPC.
The objective of the target CPA is to get as many conversions as possible of your target cost per acquisition. The cost of the click doesn’t matter. As long as you are getting clicks that convert at a profitable cost, business is going to grow.
When you choose this strategy, Google will predict which clicks will convert and how much it will cost that click to covert.
Therefore, you must have conversion tracking for at least one conversion action configured. The more conversion data you have in the account, the closer Google will be able to get conversions for your target CPA.
The objective of the enhanced CPC is to maintain tight control of your individual keyword-level bids while also letting Google optimize CPC for more conversions.
When you choose this strategy, Google will automatically raise your bids as much as 30% or decrease your bids as much as 100% based on how likely they think the click is to lead to a conversion.
Giving Google some flexibility could be very helpful because Google has a lot more data points than we do. And, they have a pretty good ability to predict if a certain click from a certain person is more or less likely to lead to a conversion.
In this strategy, you still have the complete level of control. You can still set your Max CPC bids at the keyword ad group or campaign level.
The enhanced CPC is a really good way to start experimenting with some of these different automated strategies and to see how Google changes our bids and what the results are.
The objective of the manual CPC is to fully maintain control over your bids in every auction. In other words, you’re willing to pay what you’re willing to pay.
When you choose this strategy, it gives you the most flexibility and the most control. You can default bid at the campaign and ad group level, and you can also set individual keyword-level bids. Google won’t bid more than your max in any circumstance.
It is the best place to start, and it doesn’t need conversion tracking to work. You can change to other bidding strategies at any time.