With the inception of smart bidding to its advertising platform, Google has made it much easier to set bids and analyze the obtained results. Businesses can benefit from smart bidding by automating the process and spending more time analyzing the results instead of manually updating bids every now and then.
The main advantage of smart bidding in PPC management is that it helps you optimize your campaign in more ways than before. By automating the process of calculating the maximum cost per click, you can improve your conversion rate and ROAS. The main aim of any strategy in PPC campaign management should be to maximize the value of the ad by spending the least possible amount of money.
There are many smart bidding strategies for Google Ads campaigns. Mostly, these Google Ads Bidding Strategies revolve around enhanced CPC, portfolio CPC, or target CPA. These options will use all of your campaign’s data to determine the optimal CPC for your ad campaign. The best strategy for your business depends on the type of product you’re selling or the service you are offering.
5 Effective Google Ads Smart Bidding Strategies
1. Maximize Conversions
This smart bidding strategy is based on the number of conversions you want to achieve. This strategy will help you convert as many visitors as possible with the same money. This strategy is also known as max conversions and max value.
The key to smart bidding is determining how much you want to spend on your ads based on your business goals. By setting your max bid, you’ll be able to monitor how your CPC is performing and make necessary adjustments to your bid strategies.
2. Target Cost-Per-Action (CPA)
This is another smart bidding strategy that is highly effective in boosting conversions. Target CPA is an optimization technique that requires you to analyze the number of conversions over the past thirty days.
While this strategy is highly recommended, you should follow the recommended monitoring period of 30 days to determine if it’s working or not. It will allow you to see how effective your bids are. In addition to optimizing your campaigns, smart bidding is an efficient way to increase your ROI.
3. Enhanced Cost-Per-Click (ECPC)
Enhanced cost-per-click helps you get more conversions from manual bidding. It works by automatically adjusting your bids for clicks that are more likely to lead to a conversion on your website. Unlike Target CPA Smart Bidding, which automatically set bids based on your cost per conversion and return-on-ad-spend targets, ECPC tries to keep your average CPC below the max CPC you set when optimizing for conversions.
Setting a max CPC bid is the most important step when creating a smart campaign. The goal is to get as many clicks as possible within your daily budget. Then, you must adjust your max CPC bid to get the most clicks with the least cost per conversion. You should regularly check your max CPC and other goal metrics to optimize your bidding strategy.
4. Target Return On Ad Spend (ROAS)
Aside from determining the maximum CPC, you should also set your target ROI, which stands for return on ad spend. The ROAS (Return On Ad Spend) will give you a better idea of how much you need to pay. While PPC campaign management is all about higher ROI, tracking your possible shortfalls during the bidding is equally essential.
The more profitable your campaign is, the more money you should spend on it. It is beneficial for eCommerce businesses that know the value of a conversion. This strategy is based on an ideal return. If you are not tracking conversions, you risk your profitability.
5. Automated Bidding
Automated bidding uses automated rules and may also incorporate additional data points. While not every automated bidding method is not a smart bidding strategy, these options are available to the user when setting up a campaign.
Using automated bidding to manage your ad campaigns, you can create more effective ads. It can also save you a lot of time from having to manually bid for your ads.
The eventual goal of Google Ads Bidding Strategies is to maximize your revenue. While it may be challenging to set a specific budget, you can always limit the maximum amount you can spend for your ad campaign. If you are wondering how you can get the most out of digital marketing for business, go for PPC services offered by a highly experienced and well-versed PPC marketing agency.
