Do you know what the best bidding strategies involved in a PPC advertising campaign are? To understand the best PPC bidding strategy, you should have to be aware of each strategy’s objective, and what are the pros and cons of an individual bidding strategy?
Let’s start with a crucial part of PPC advertising that is determining what to pay per click. To know what to pay per click, you have to know the various bidding strategies. The critical part of choosing the best bidding strategy is to understand the bidding strategy’s primary objective at which each bidding strategy is focused on?
The other important thing to know about the bidding strategy is the bidding strategy’s functionality. The pros and cons are also playing a vital role in bidding. Once you get familiar with these three points, you can use a bidding strategy according to your need.
Bidding Strategies Are Divided Into Three Prominent Families:
The first one is smart bidding that is a conversion-based strategy; the second is Auto bidding and is a function-based strategy; and the last one is manual that is human-based.
Now let’s analyze each bidding strategy and list their positive and negative effects.
1- Portfolio Biding Strategy
A portfolio bidding strategy is a tool that can set up in your account. After setting it up at the account level, you can assign different campaigns to share bidding strategies.
You can set up three campaigns. You can do it in the portfolio bid strategy, and you want the same target CPA to assign to these campaigns, You can do it in the portfolio bid strategy.
The instructions are simple:
- Add the target CPA rule in the portfolio bid strategy;
- Assign it to related campaigns;
- Bulk edit the CPA by editing the portfolio bid strategy.
Pros of Portfolio Bidding Strategy
- The comprehensive reporting for all campaigns sharing the portfolio bit strategy is convenient and efficient from this strategy.
- This strategy also allows you to set a maximum cost per click.
Cons of Portfolio Bidding Strategies
- Maximize conversions and maximize conversion value bit strategies are barely performing in campaigns.
- You can not set a maximum cost per click limit with these new strategies.
2- Target CPA
The target cost-per-action strategy is suitable for a legacy campaign, but it is not useful for exploring new services or fresh accounts.
The Target CPA approach allows google Ads to use the set daily budget, automatically sets bids while driving as many conversations as possible at the requested CPA. Some conversions as possible at the requested CPA. Some modifications may cost more or less than your target.
Pros of Target CPA
- Target CPA can be set at either the campaign or portfolio level, which means there will be no individual keyword-level bids for you to adjust.
- Minimum 60 days of conversion tracking and campaign running are recommended to hit the CPA.
- Minimum 15 conversions are suggested for the learning phase.
- Google no longer requires a set number of conversions in 30 days to run.
Cons of Target CPA
- The volume will get impacted as the ad network passes up potential prospects to bring you conversion at your requested CPA.
- It takes time for your campaign to learn before the automated binding, not for under-bid.
- It needs conversion tracking working.
3- Target RAOS
Target return on ad spending (RAOS) bid strategy gives the google power to spend the daily budget and set bids automatically while driving as many conversions as possible to achieve your RAOS.
Since RAOS focuses on conversion volume and conversion value, it is a hero in bidding strategies. The prerequisite of this strategy is setting up conversion values for each conversion.
Advertisers set a RAOS goal instead of a CPA goal.
Google requires at least 15 conversions in 30 day period to run.
Pros of RAOS
- This PPC bidding strategy enables more seamless reporting through profit entering the equation.
- In RAOS, the budget is invested in doing the most good, balancing volume and ROI.
- There is no requirement of hundreds of conversions for making it accessible to lead gen.
Cons of RAOS
- It may be an obstacle for newer businesses.
- It requires a better understanding of business operations to give conversion values.
- It can not be used right away because it requires conversion.
- If the RAOS budget, goal, and targets are not aligned, the RAOS strategy will overspend.
4- Maximize Clicks
Maximize clicks is a bidding strategy used to generate clicks as much as possible within your specific budget. This strategy is suitable for highly-converted conversion campaigns and brand campaigns.
This bid strategy is used to increasing clicks in all campaigns by google Ads. This type of plan should be chosen carefully and must map with your goals. Maximize Clicks bidding can be used with CPC to spend additional budget remaining after manually managed keywords have spent all they can.
Pros of Maximize Clicks
- This bidding strategy allows you to force spending to reach a specific amount.
- It can work with manual CPC bidding to ensure the budget is spent.
- It can maximize traffic to your website.
- It is the most effective way of generating traffic on your site.
Cons of Maximize Clicks
- This bidding technique can not control traffic quality.
- The result of this strategy is less meaningful.
5- Maximize Conversions
The primary purpose of maximizing Conversion bidding is to drive maximum conversion, regardless of cost or value per lead.
Within a given budget, the ad network will attempt to drive conversion as much as possible. Google uses an advance A.I. to effectively improve bidding with this bidding strategy.
Pros of Maximize Conversion
- This bidding strategy balances value and volume.
- This bidding strategy shows remarkable consistent growth.
- The conversion threshold is not required for this strategy.
Cons of Maximize Conversion
- Due to the double-counting of conversion, this strategy may miscalculate the budget.
- For RAOS, this bidding strategy will spend the budget with no consideration.
- The setup of conversion action is necessary for this bidding strategy.
6- Target Impression Share
This bidding strategy aims to achieve the desired impression share in the desired location within the budget.
In this bidding strategy, the percentage goal and the location asked from the advertiser. For example, the advertiser should be careful to choose at least 60% at the top of the page. The bid cap must not exceed 10% of the daily budget.
Pros of Impression Share
- The campaigns requiring high impression share can be on “autopilot.”
- In this bidding strategy, you can learn whether the desired keyword concept fits the budget.
- This bidding strategy is helpful for mobile-oriented campaigns to secure ideal placement.
Cons of Impression Share
- This technique doesn’t focus on clicks or conversions.
- There is a risk of bidding war on unproven terms in this bid.
- If the target is not aligned, then this bid leads to low volume or no volume.
7- Manual Bidding
It is an advertiser controlled bidding strategy. Advertisers get leverage of bid adjustment over bidding goals in it.
In this bidding strategy Ad manager sets the bids manually at the keyword level, and the bid stays the same until the advertiser changes them. In this bidding strategy, the advertiser can access the following bid adjustment:
Note that most bid adjustments are only available as exclusions or adjust the TCPA/ROAS on auto bidding.
Pros of Manual Bidding
- This bidding gives unlimited control.
- Audience bid adjustment allows for precise message mapping.
- Don’t worry about it; there is no official learning period.
Cons of Manual Bidding
- There is a lot of manual work to monitor and update.
- This bidding is easy to overbid by including many bid adjustments since they are cumulative.
After discussing all the bidding strategies, you can see there are various bidding strategies are available. From these best PPC strategies, you can choose which is best for you to grow your business.