Different types of bidding strategies available in Google AdWords

Different types of bidding strategies available in Google AdWords

How Google Ads Works?

As you know the Google Ads is the paid marketing strategy introduced by the Google Search to help the business owners to get more traffic to their business website from Google. In the Google Ads, you need to pay for Google based on per click basis. That is you need to pay to Google only if the user clicks on your ad and lands on your business website.

Google also offers lots of targeting options by using which you can target the exact users whom you need to land on your website. The different targeting options will help you to narrow down the audience set and really land only the potential users to your business website from Google Search.

Why you need Google Ads for your business?

Below image shows the data of the Click Through Rate (CTR) of the users based on the ranking positions of the websites in the Google Search results.

bidding strategies available in Google AdWords

From the above image, it’s very clear that the 30% of clicks goes to the link which ranks at #1 on the Google search results.

Similarly, the percentage of the Click Through Rate gets reduced as the position of the website decreases in the Google’s search results. Normally if you run Google Ads, you can be able to rank your ad at #1 position if the campaign is properly curated by the best PPC Consultants from the best digital marketing agencies like ClickDo.

Talking about the first four positions in Google search results. You need to put very strategic SEO plan to rank the site organically in top for the potential keywords. You can get the expert guidance from SEO Consultant like Fernando Raymond for ranking your website organically on Google.

On the other hand, you can allocate a dedicated budget for the Google Ads and show your business ads in the top four search results and get the potential clicks to your website. If you are new to Google Ads, you can check out the complete beginners course for Google Ads which as created by Dinesh Kumar VM and its available at SeekaHost University.

Bidding Strategies in Google Ads

When it comes to Google Ads, your ad position will be decided based on the factors like Ad quality score, keywords which you are targeting and the bidding strategy which you are using.

There are many bidding strategies available in the Google Ads like Target Cost Per Action, Target Return On Ad Spend, Maximize Conversions, Maximize Conversion Value, Enhanced Cost Per Click, Maximize Clicks, Manual CPC, etc.

From these many types of bidding strategies, you can choose the one based on your campaign goal. If your goal is to drive more traffic to the business website, then you can go with either Maximize clicks or Manual CPC.

Let’s see in detail about the Maximize clicks and the Manual CPC bidding strategies as they are the most commonly used bidding strategies in Google Ads to drive more traffic to the website.

Manual CPC

In the Manual CPC bidding strategy, you will assign a maximum CPC range to spend for each click. So Google will not spend more than the fixed limit set by you for each click. For example, if you have a daily budget if 30$ and if you set the manual CPC bid to be 1.5$. Then Google will spend a maximum amount of 1.5$ per click and not more than that.

This means Google will try to get as many as clicks under 1.5$ and will not spend anything more than 1.5$ per click. So this is how Google will work based on the manual cost per click which you set.

There is a slight concern while choosing the manual CPC bidding strategy. When you choose the manual CPC then you should be well aware of the bidding range of the keywords which you are targeting and should fix the correct value to spend for each click.

If you fix the CPC value less than the actual bidding value. Then your ads will not appear in the search results or your ads will appear in the bottom of the page and will not show in the top of the search results. So this will result in low campaign performance if the CPC range is not fixed properly.

Maximize Clicks

Maximize clicks is one of the most used bidding strategy in Google Ads. So you will fix the maximum daily budget for your campaign and Google will work out your ads to get as much as maximum number of possible clicks within your daily budget.

For example, if you have kept the daily budget as 30$ and have chosen the maximize clicks bidding strategy. Then Google will try to get maximum number of clicks as it can by not spending anything more than 30$.

Here you may have a question like, is there any chance that CPC may go high here since you are not choosing anything about CPC. So to keep the cost per click (CPC) in control. Google allows you to fix the maximum CPC per click even it’s a maximize clicks bidding strategy. So you can have the specific maximum CPC and Google will not spend more than that maximum CPC for each click.

So you can use the maximize clicks for you Google Ads campaign. This will make sure that you get more number of clicks to your campaigns within your budget. This is the most used on by the advertisers.

Conclusion

As a business owner, you should allocate dedicated budget for the Google Ads campaign to make sure that you get more clicks for your business website from the Google Search. This will ideally make sure that you get more inquiries for your business at the end of the day. When hiring PPC Consultants for your business, you should always make sure that they have good experience in handling the campaigns and you should choose them based on checking the previous works done by them.

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About the Author: Khurram Raheel Akbar

Khurram Raheel Akbar is a reporter for Zobuz. He previously worked at Huffington Post and Vanity Fair. Raheel is based in PAK and covers issues affecting his city. In addition to his severe coffee addiction, he's a Netflix enthusiast, a red wine drinker, and a voracious reader.

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