Categories
There’re many things in life that are too good to be true.
Civilization in Mars, an existing Godzilla, a primate size of Kong, and a unified Korean nation are some of the issues that could form the list.
An automatic bidding service by Google could also fall in the list above due to its mystery.
Google is currently leveraging the use of machine learning and artificial intelligence in its advertising platforms and specially for PPC Bidding Strategies. Advertising alone accounts for over 96% of the tech giant’s gross sales revenue.
As an internet marketer, you’re at a stage where you curate ad campaigns and Google optimizes everything else for you.
How cool is that?
Automatic bidding in Google Ads suits advertisers looking to conveniently optimize their campaigns beyond the fundamental metrics.
Obviously, selecting the appropriate bidding type and implementing an optimized ad campaign is important in reducing costs.
When you’re creating a new ad campaign, Google asks whether you want a manual or automatic route.
In this guide, you’ll discover key automatic options and what to keep a watchful eye on.
Without wasting time, let’s begin with the genesis of every new account- Manual Bidding Strategy.
This is the most-basic and easy-strategy to understand as a newbie.
Basically, you set your bids at the keyword level and the bids stay unchanged until you act again. Albeit Google gives a subtle warning, this is the strategy you want to start with if you are new to PPC.
The manual strategy takes all the precious time you have. Besides, it requires you to keep watch of the performance and take action when needed.
This implies that you will not have a complete picture of the customer journey at various touchpoints in your sales funnel.
The last pitfall is the reason why many seasoned marketers prefer to use data-driven automatic bidding options.
It’s the only automatic option that Google provides you when you opt for manual strategy.
Enhanced CPC allows Google Algorithm to optimize the keyword bid you set manually.
You can set Enhanced Click-Per-Action by simply ticking the box appearing below the manual settings window. Alternatively, you can enable it from the bidding type dropdown menu.
This option decreases or increases your keyword bid based on the chances a click will result in a conversion. A well-optimized manual campaign using this option can result in increased conversion value and CTR.
Enhanced CPC should be the first step towards automation if your new account is recording positive outcomes.
Who wants to adjust bids every time, especially when you’re running many ad campaigns?
We bet “nobody.”
This is why a huge chunk of seasoned marketers use automated bidding strategies to drive successful campaigns.
Following are Google Ads Bidding strategies at your disposal as a digital marketer.
You need to pay close attention to them. They may break or make your campaign.
It focuses on raising your brand awareness to as many online users as possible. All you need to get started with this Google Ads bidding strategy is to enter your target percentage of impressions.
You need to know that impressions do not guarantee clicks.
This option is currently reserved for video advertisers. It’s mostly found in YouTube. A “view” is defined by Google as the timeframe a user watches your content ad.
CPV is YouTube’s default setting.
It’s based on views just like CPV and is suited for platforms, such as YouTube
An impression is deemed as “viewed” after a user spends 2 seconds watching.
This option depends highly on your daily max ad budget. Google drives the most clicks possible with the maximum budget you allocate.
Maximize Clicks bidding strategy is recommended when you have limited search volume and budget for your ad campaigns.
This is the newest option available for advertisers. It focuses on maximizing the conversion value using the set daily budget.
The Target ROAS and this option contrast because you don’t have to set your target return. You let Google’s AI set it for you.
This is the easiest option available for internet marketers. Google Ads platform automatically bids for the maximum conversion using your Ad Spend.
For instance, if your daily Ad Spend for your campaigns is $20, Google will find you maximum conversion. If conversion costs more than your entire budget, Google won’t do bidding work for you.
This method depends on your daily budget for maximum conversion and higher ROAS.
In this option, Google sets your bids to maximize conversion using the target return on marketing investment. This method is the most viable for advertisers albeit it has lots of math.
We guess that’s one of the reasons why most digital marketers run away from it.
Let’s assume that you want to generate a sale of $20 for every $10 you spend on your ad campaign
Sales / ad spend x 100% = Target Return on Ad Spend
$20/$ 10 * 100% = 200%
The Target ROAS in this instance= 200%
If the objective of your campaigns is conversion, the CPA option is highly recommended. Google Ads will focus on converting prospects at a specified expense of acquisition.
You don’t want to set your target CPA to $25 if the price of your offering is $25.
This would be the break-even point albeit the goal is to generate net profits.
Automatic vs. manual bidding that is always remain a question. At this point, you already know about the different automatic bidding strategies at your disposal.
Where do you start with knowing the relevant bidding option for your business?
Every ad campaign should be optimized based on the desired objectives.
Let’s break down common objectives and aligned bidding strategies.
If the objective of the campaign is to drive huge conversion volume, consider these bids:
(a) Enhanced CPC
(b) Target ROAS
(c) Target CPA
(d) Maximize Conversion
(e) Maximize conversion value
Advertisers whose objective is to drive traffic to their sites for goals other than converting consider the following:
(a) Manual CPC
(b) Maximize Clicks
Brand awareness is one of the less commonly pursued goals by internet marketers. There are bidding strategies aligned with this objective, namely:
(a) CPM for YouTube
(b) Target Impression Share
The choice between PPC Bidding Strategies (Manual and Automatic Google Ads Bidding) options boil down to your experience in PPC and the goals of your campaigns.
Automatic Bidding Strategy is highly popular because it conveniently optimizes your Ad campaigns beyond the basics metrics. Google suggests this option because it’s a data-driven approach.
Why would you want an option that limits your performance metric measurement?
Seasoned advertisers prefer the data-driven option with multiple performance metrics. This paints the whole picture of the prospect’s interaction with the funnel’s touchpoints.
Why would you want an option that’s so manual you’re forced to shove other tasks aside?
We bet you’d rather go “auto” just like the car you prefer driving.
However, if you’re a newbie in PPC, consider starting with a manual strategy. Then, slowly transition to Enhanced-CPC as you head to Automatic Google Ads Bidding options.
Before choosing your Google Ads approach, assess the objectives of your campaign carefully. After all, you won’t be happy being Google’s cash cow for little or no return.
How much did you enjoy this article?
We will help your ad reach the right person, at the right time
Actionable insights discovered for you. Now you can do more in less time.
PPCexpo Keyword Planner will help you align your keywords with the customers’ intent.
Frequent audits will help you optimize your PPC campaign for success.
Visualizations give you the ability to instantly grasp the insights hidden in your numbers.
Experience the new revolution in reporting … click your way to insights, don’t scroll.
Calculate the number of combinations in your PPC campaign. It may surprise you.
Related articles
A landing page is a web page designed to drive specific actions. Learn the essentials of creating high-converting landing pages in our guide.
ROAS calculation can help you evaluate every PPC campaign's performance so that you know which of your campaigns are converting the best.
Discover the marketing lifecycle stages and how they shape customer relationships. You’ll understand their role in driving customer engagement and retention.
