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According to a recent Google report, businesses earn $8 for every $1 they spend on Google Ads. The good news is that just about every business, whether small or large, can find value in the Google Ads network.

Of course, even an ideal business can have trouble getting started on Google Ads. Many marketers expect immediate results and throw in the towel before they can optimize their bidding strategy. But if you stick with Google Ads in the long run, you can enjoy some of the best marketing ROI available.

Need help getting started with your Google Ads bidding strategy? Here’s an in-depth look into finding success on the platform.

1. Determine Your Cost-Per-Action

What is an action? It’s a task you want your potential customers to undertake. It could mean signing up for the newsletter, buying your product, or visiting your website.

Your PPC advertisement will no doubt ask customers to make one of these conversion actions. Before you search for keywords or prices, it’s important that you get a handle on a targeted CPA. After all, if it costs more than you gain through conversions, your PPC campaign isn’t worth the cost.

Let’s figure out the most you are willing to spend per action. If your PPC advertisement asks visitors to purchase a pair of $60 shoes, then your conversion is worth the profit margin for that product. We will say you make $12 for every purchase of $60 shoes.

To profit or break even, your CPA cannot exceed $12. The cost per conversion depends on the success of your PPC campaign. This means you will have to set initial bids before you can optimize your CPA.

2. Start With Manual Bidding

If your business is new to the Google Ads network, you may be tempted to take advantage of automated bidding. This option allows you to target preset bid strategies that can help you reach your conversion goals. The problem is it’s easy to throw off the bidding algorithm, which can reduce the potency of your entire campaign.

For one, Google Ads requires a high volume of conversions before you can use automated bidding. If you are on the lower end of the conversion scale, the algorithm will have a limited data set to inform its decisions. Smaller businesses may not have the budget flexibility necessary to maintain an automated bidding campaign, as sudden alterations can lead to exorbitant ad spend expenses.

Manual bidding is the best bet for any new business getting started with PPC advertising. Even if you aren’t experienced with Google Ads, it’s easy to set an initial keyword bid.

First, turn to the Google Ads Keyword Planner. This tool can help you find new keywords, but its true value comes from displaying suggested bids. CPCs fluctuate due to factors such as location, competition, and industry, so this data can give you a firm foundation relevant to your business.

Once you’ve trimmed your list of potential keywords based on efficacy and price, analyze their individual metrics. For example, you can see exactly how much it will cost to land on the first page of the SERPs. Betting the bare minimum will result in your ad landing at the bottom of the page, so increase the payout to claim a spot somewhere in the middle.

These initial bids will serve as the beginning of your Google AdWords bidding strategy. PPC tools can help you get started.

3. Make the Jump to Automated Bidding Strategies

Automated bidding will become more accurate as your conversion volume increases. At a certain point, you can consider switching existing campaigns to automated bidding or testing automated bidding with new keywords and campaigns.

There are 12 ways to bid on Google Ads. What do they all mean? We’ll cover the most common.

CPA Bidding Strategy

Most businesses will use the CPA strategy. This maximizes conversions according to the cost-per-action that you select. The Google algorithm will use the CPA as an average, so some bids may cost more than your preset designations, but others will cost less to compensate.

Maximize Conversions Bidding Strategy

If you’re not worried about your return on investment or don’t have enough data to select a CPA strategy, consider maximizing your conversions. It’s an extremely simple technique so long as you know your daily marketing spend available to allocate.

Set your daily spend and Google Ads will maximize as many conversions as possible within the budget. It’s not the most effective bidding strategy, but it’s a no-fuss way to get started or try and find your footing.

ROAS Bidding Strategy

ROAS is an acronym that stands for “return on ad spend.” This option optimizes your conversions based on your desired return.

Remember that you stand to make $8 for every $1 you spend on Google ads. This would give you a ROAS of 800%.

Maximize Clicks Bidding Strategy

Most of these strategies are built around the idea of driving a sale, but you can run a Google Ads campaign simply to bring traffic to your site. If this is your goal, select the maximize clicks bidding strategy.

After selecting your daily ad spend, Google Ads will seek to maximize the number of click-throughs you receive through your ads.

Impression Share Bidding Strategy

Larger companies may seek to build a brand presence. If so, Google Ads now has a new type of bidding strategy known as impression share bidding.

Your advertisements will appear up to 100% of the time on related search engine results pages. Costs can skyrocket out of control, so reserve this strategy for inexpensive keywords.

Need Help Selecting a Bidding Strategy?

Trial and error are essential to finding success on the Google Ads network. While one bidding strategy may work for a competitor, that doesn’t mean it’ll work for you. Test a variety of different strategies and keywords until you discover the results you’re looking for.

Many businesses find value in outsourcing Google Ads management. If you are struggling to find success or do not have the time to run a PPC campaign, turn to the professionals. Reach your goals with the help of an experienced Google Ads agency.

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