What Are Bid Strategies?

Breaking Down Bid Strategies

Deciding which bid strategy for your chosen paid ads platform will yield your campaigns the best result is imperative when crafting a digital paid ads strategy. But what are bid strategies exactly, and which ones are best suited to your campaigns? In this blog, we will outline some of the basic bid strategies available when setting up a digital ad campaign. Read through the end for some better insight on which bid strategy best suits your campaign goals.

What Are Bid Strategies?

To make it simple, bid strategies are goals tailored to your campaigns. After determining a goal, the ad platform you are using optimizes your ads to achieve your goal. The bid strategies discussed in this blog are primarily found on Google’s ad platform, and these strategies are specifically tailored to many different kinds of goals. 

There are a few different types of goals that your campaigns can achieve. Some of the primary goals that bid strategies are designed to reach are a higher number of conversions, more traffic to your website, and increased brand awareness. 

Maximize Clicks – 

  • The goal: 
    • For this bid strategy, the goal is to increase visits to your website. 
  • How it achieves the goal: 
    • With Maximize Clicks, the ad platform will automatically set bids to help maximize the number of clicks your ads get within your set daily budget.
    • This bid strategy is best used when you are looking to send as many people to your website as possible. 

Maximize Conversions – 

  • The goal:
    • This bid strategy aims to increase the number of conversions your ads receive while still spending your budget. 
  • How it achieves the goal:
    • Maximize Conversions will automatically set bids to help you get the most conversions on your ads while spending the entirety of your budget. 
    • With Google, this strategy optimizes for a higher volume of conversions rather than just traffic. 

Target CPA (Cost-Per-Acquisition) – 

  • The goal:
    • This strategy looks to get your campaigns more conversions within your set target cost-per-acquisition. 
  • How it achieves the goal:
    • When creating a campaign with this bid strategy, you are given the opportunity to set your target cost.
    • The cost-per-acquisition is the amount of money you are willing to spend to acquire one customer.
    • The ad platform automatically sets Display or Search bids that help you to receive more conversions. The cost of these bids is kept within the set target you chose during the setup process. 
    • Some conversions may cost more or less than your set target, but ultimately balance out to stay close to your target cost. 
    • This strategy gives you more control over your automated bidding.

Maximize Conversion Value – 

  • The goal:
    • This bid strategy is used when you are looking to optimize your campaign for conversion value.
  • How it achieves the goal:
    • Maximize Conversion Value allows you to spend your entire budget rather than targeting a specific ad spend return and increasing conversion value. 
    • Conversion value is on average how much one of your conversions is worth. This bid strategy looks to increase the value you receive from each conversion while still spending your budget. 

Target ROAS (Return On Ad Spend) – 

  • The goal:
    • When using Target ROAS, the goal your campaigns will reach is to optimize for conversion value.
  • How it achieves the goal:
    • This bid strategy focuses on increasing conversion value but does so while targeting a specific set return on ad spend.
    • Return on ad spend is the amount of money you make back on each ad. 

Manual CPC (Cost-Per-Click) – 

  • The goal:
    • Manual CPC allows you to optimize your campaigns for traffic to your website.
  • How it achieves the goal:
    • This bid strategy gives you more control over your bidding strategy in that it allows you to set bids yourself. 
    • With Manual CPC you can set bids for different ad groups or even keywords on your own.
    • If you find that specific search terms yield more traffic and profitability, you are able to adjust budgets to accommodate them. 
    • If you are not very well-versed in Google Ads yet, this strategy may not be your best bet. However, for those experienced in Google Ads, this strategy is perfect for customizing your bids to your liking.

Contact Click Control Marketing For Your Bid Strategy Questions!

Deciding on a bid strategy that best suits your campaigns can take your digital marketing to a new level. We hope this information provided some better insight on which bid strategy you should choose for your next digital paid ads campaign. For more information and help in selecting a bid strategy best fitted to your goals, contact Click Control Marketing. With a team experienced in using many different types of bid strategies to reach client goals, we are able to help all different types of clients achieve their marketing goals. Visit our contact page for more information!

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