When it comes to Google Ads, there are a lot of different options for bid strategies. So how do you know which one is right for your eCommerce business?
The answer may vary depending on what your goals are and what your budget is. But in general, here are a few things to keep in mind when choosing a bid strategy:
- What is your advertising goal?
Are you trying to generate more clicks? Or are you more concerned with generating conversions? Your answer will help guide which bid strategy is right for you.
- What is your average order value (AOV)?
If your AOV is low, then you may want to focus on getting as many clicks as possible. But if your AOV is high, then you may want to focus on generating conversions.
- What is your daily budget?
If you have a limited budget, then you may want to choose a bid strategy that will help you get the most out of your spend. For example, if you have a small daily budget, you may want to choose a manual CPC bid strategy so that you can control how much you’re spending per click.
- What is your advertising schedule?
Do you want your ads to run all day, or just during certain hours? If you only want your ads to run during certain hours, then you’ll need to use a schedule bid strategy.
- What is your target audience?
Are you targeting a specific location or demographic? If so, then you’ll want to choose a bid strategy that targets those audiences specifically.
How to scale your Google ads campaign: Scaling a Google ads campaign is key to success. Here are five tips to get you started.
- Start with a small budget. You can always increase your budget as your campaign progresses and you see results.
- Location, location, location. Make sure you target the right locations with your ads. Otherwise, you’ll just be wasting money.
- Choose the right keywords. Keywords are vital to any successful Google ads campaign. Choose keywords that are relevant to your product or service and that have low competition but high search volume.
- Write great ad copy. Ad copy is what will sell your product or service, so make sure it’s compelling and persuasive.
- Set up conversion tracking. This will allow you to track how many people are clicking on your ad and then taking the desired action, such as making a purchase or signing up for a newsletter.
By following these tips, you can scale your Google ads campaign for success.
No matter what your goals are, there’s a Google Ads bid strategy that’s right for you. By taking the time to consider your options and understand your goals, you can ensure that you’re choosing the best possible strategy for your eCommerce business.
Google Ads sets the precedent for most bidding strategies and offers the most options, so we’ll focus on their offerings here. However, keep in mind that most of these bid strategies are available in platforms like Microsoft Ads as well.
Let’s take a closer look at each Google Ads bid strategy.
Manual Cost-Per-Click (CPC)
The original bid strategy from Google AdWords is still an option in 2022. With this bid strategy, a maximum CPC is set for each keyword or at the ad group level within a Manual CPC campaign. This is the maximum amount you are willing to pay for a click from a given keyword or group of keywords within an ad group.
Advantages:
– You have complete control over your CPCs.
– You can optimize for individual keywords or groups of keywords.
– This is a good choice if you have an unlimited budget or want to focus on a small group of high-value keywords.
Disadvantages:
– It can be time-consuming to manage CPCs for a large number of keywords.
– You may not get as many clicks as you would with other bids strategies, since your CPCs may be set too low.
Max Conversion Value (CPA)
This bid strategy automatically sets your bids to help get as many conversions as possible at the target cost-per-acquisition (CPA) you set. Google will optimize your bids based on historical data and real-time signals to get the maximum number of conversions for your CPA target.
Advantages:
– You don’t have to bid on individual keywords or ad groups.
– Your bids are automatically optimized to get the most conversions possible.
Enhanced Cost-Per-Click (CPC)
The Enhanced CPC bid strategy is a variation of Manual CPC that allows us to tell Google we’d like their algorithm to raise bids beyond our Maximum CPC when a conversion is likely (i.e. when their algorithm determines a user is more likely to complete one of the business goals in the account). This is an early example of automated bidding, with many of the following smart bidding strategies being rolled later.
Advantages:
– You have more control than with automatic bidding strategies.
– Bids are automatically increased for clicks that are more likely to convert.
– This is a good choice if you want to get more conversions but still want some control over your CPCs.
Disadvantages:
– You still have to bid on individual keywords or ad groups.
– You may not get as many conversions as you would with other bid strategies.
Target Search Page Location (TSPL)
The Target Search Page Location (TSPL) bid strategy is a manual CPC strategy that allows advertisers to target where their ads will appear on the search results page. Ads can be targeted
Maximize Conversions
Max Conversions is a bid strategy focused on driving more of the Primary conversion goals set up in your Google Ads account. Any conversion goal set as Secondary will not be factored in here.
This smart bidding strategy works similarly to enhanced CPC in that it raises bids when a conversion is likely. However, it is fully automated and does not require a maximum CPC to be set for it to function. The big caveat to keep in mind with “Maximize” strategies is that they will attempt to spend the full budget allocated to a campaign.
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Target Cost-Per-Acquisition (CPA)
Once its own bid strategy, Target CPA has become a setting within the Maximize Conversions bid strategy. Selecting it and setting a dollar value per lead to target causes the smart bidding algorithm to optimize its bids towards your CPA goal.
You can use this option to prevent a Max Conversions campaign from overspending or over-bidding. This gives you more control over what the ultimate cost-per-lead is. However, it’s important to keep that target realistic. Setting a Target CPA too low can throttle campaigns and cause ads not to be shown at all.
Optimization is key for any Shopping campaign. Here are some tips to help you optimize your Shopping campaigns for the best results:
First, make sure your product data is accurate and up-to-date. Incorrect or outdated product information can lead to ads that are less relevant and less likely to be clicked on.
Second, use negative keywords to exclude terms that aren’t relevant to your products. This will help improve your ad relevance and click-through rate.
Third, bid aggressively for high-value keywords. This will help ensure that your ads are seen by potential customers who are most likely to purchase your products.
Fourth, test different ad copy and landing pages to see what works best for your products and your target audience. A/B testing can be a great way to find the right combination of factors that leads to more clicks and conversions.
By following these Optimization Tips for Shopping campaign, you can improve the performance of your Shopping campaign and get the most out of your advertising budget.
Target Outranking Share
With Target Outranking Share, you’re essentially telling Google Ads that you want your ad to show above a specific competitor’s ad a certain percentage of the time.
This is a great way to get more exposure for your brand and product, especially if you’re selling something similar to what your competitor is selling.
To use this bid strategy, you’ll need to set up a tracking URL so that Google can track how often your ad is showing up above your competitor’s.
These are just a few of the many bid strategies available on Google Ads. To learn more about how to choose the right bid strategy for your business, contact a Google Ads expert today.
