Maybe you’re a business owner managing your online marketing on your own, or perhaps you’re a CMO for an up-and-coming startup who’s been putting in sweat equity, but now your business is at the point where it’s not feasible to do this anymore.
Odds are, right now you’re doing pay-per-click bidding manually. You’ve been toying with the idea of implementing automatic PPC bidding strategies, but the benefits Google Ads promises seem too good to be true.
At Peppermonkey Media, we have over a decade of PPC management experience, and we love helping businesses make sound digital marketing decisions. You’re in the right place to find out everything you need to know about PPC bidding strategies. Call us at (888) 231-9764 to request your digital marketing consultation.
What Are the Main PPC Bidding Strategies?
PPC Bidding Strategies fall into two categories:
- Manual PPC bidding
- Automatic PPC bidding
Let’s break both categories down and highlight the key information.
Manual PPC Bidding
Manual PPC bidding simply means you issue each bid, and they remain in place until you change them.
This is the most direct way to ensure your bids go where you want them, but it is also also the most time-intensive way to do so.
An intermediary step you can take between manual and automatic PPC ad campaigns is to implement enhanced cost per click (ECPC).
ECPC allows you to let Google Ads automatically adjust your manual bids based on how likely it thinks clicks will lead to a conversion. This is a great step for ad buyers with well-optimized manual PPC campaigns who want to move toward automation because it can automatically increase conversion value and clickthrough rate. If you’re considering implementing ECPC or other automated strategies, it’s essential to ask relevant questions to a PPC agency to ensure a smooth transition and optimal results.
Automatic PPC Bidding
Once you dial in your manual PPC bidding process, it is a great idea to begin experimenting with automatic PPC bidding strategies so you can free up your time and maximize your PPC campaign effectiveness.
There are eight different automatic PPC bidding strategies:
- Target impression share
- Cost per view (CPV)
- Cost per thousand impressions (CPM)
- Maximize clicks
- Maximize conversion value
- Maximize conversions
- Target return on ad spend (ROAS)
- Target cost per action (CPA)
Each strategy fills a different need for ad buyers. Understanding which one(s) is right for you is the key to taking advantage of the powerful machine-learning tools available to you. We’ll go over how each strategy works and which campaigns they work best for below.
Automatic PPC Bidding Strategies
Understanding the eight strategies listed above is tantamount to creating an effective automatic PPC campaign. Many digital marketers err by assuming automatic PPC bidding strategies are an effortless silver bullet. Automatic PPC strategies are powerful tools, but it doesn’t matter how powerful a tool is if it’s not operating in its proper application.
Target Impression Share
This automatic strategy sets bids with the primary goal of getting your ad on the absolute top of the search page, the top of the page, or anywhere on the search page.
This strategy works best for campaigns promoting brand awareness. If you want your ad to show 100% of the time someone searches for your brand name, a target impression share rate strategy of 100% will try to show your ad on 100% of the auctions available in that campaign.
Cost Per View
This strategy is specifically for video campaigns. It allows you to set a maximum price you’re willing to pay for each view–Google defines a view as a view where the user watches 30 seconds of your ad or interacts with the ad, whichever comes first. This strategy is only available if you run TrueView video ads.
This strategy works best for video-heavy or video-only ad campaigns.
Cost Per Thousands Impressions
Cost per thousands impressions allows digital ad buyers to set a price they are willing to pay for every thousand times their ad is shown. The algorithm takes the price and optimizes bids to gain as much unique reach as possible.
This is a good general strategy for making as many impressions as possible in your target price range.
Maximize Clicks
This is a simple strategy for achieving maximum interaction.
To utilize it, set an average daily budget for the algorithm, and it will set a maximum cost-per-click with the goal of getting the most clicks possible within your budget.
Maximize Conversion
This strategy allows ad buyers to tell Google Ads’ algorithm to prioritize conversions above all else. When this strategy is in play, the algorithm will automatically issue optimal bids for your ad every time it’s eligible to show.
This is a good strategy for ad buyers looking to get the cheapest conversions available for their budgets.
Maximize Conversion Value
This strategy is more involved than most others. It offers a lot of set-it-and-forget-it potential, but to get good results, you need to do work on the front end to ensure the strategy serves your goals.
To do this, you need to understand what constitutes a high-value conversion for your campaigns, like sales revenue or profit margins, for instance. Once you input this information, Google will make bids to maximize conversions in line with your value priorities.
Target Return on Ad Spend
Target return on ad spend uses Google Ads’ Smart Bidding to analyze and predict the value of a potential conversion every time users search for what you’re advertising. It then automatically adjusts your bids on these searches to maximize your return on them.
This is a good strategy for ad buyers who value specificity and are willing to pay for it.
Target Cost Per Action
This strategy sets your bids with the intent to garner as many conversions–or customer actions–as possible. To do this, Google Ads implements your target CPA to issue bids based on the likelihood an auction will create conversions.
This is good for ad buyers who value customer actions at a set price.
What’s Next?
Now that you know everything you need to know about PPC bidding strategies, it’s time to decide your next steps. For help determining the best strategy and PPC KPIs for your business, contact our team at PepperMonkey Media. Call (888) 231-9764 to set up your digital marketing consultation.
