PPC Bidding Strategies: The ‘What and The ‘Why’

PPC can be a complicated beast – especially if it’s not something you’ve had a lot of experience with. From bidding strategies to quality scores, impression shares to conversion goals, there are a lot of moving parts to keep your eyes on.

In this blog, we’ll look at one of the most important aspects of a successful Google Ads campaign – the bidding strategy. Whether you’re a PPC pro or an ads amateur, we’ll cover the different bidding strategies available to you, who they’re most suitable for, and most importantly, what they do.

Without further ado…

Overview – A Whistlestop Tour of PPC Bidding Strategies

Now, let’s dig a little deeper…

1. Manual CPC – The ‘Old Fashioned’ Way

With automation on the rise in every aspect of digital marketing, a Manual CPC bidding strategy is one of the longest-standing options available to you, and one that arguably gives you the most control over your campaigns.

What is it?

Manual CPC essentially means that you set your max CPC (cost-per-click) bid for each keyword individually. The Google Ads interface will flag when you’re below the current first-page bid, allowing you to raise or lower bids as you see fit for each term.

Who is it best for?

This strategy is often best for advertisers who want the most control over their budgets and have the time to check and action this regularly (ideally every day). This allows you to keep a close eye on exactly how much you’re spending each day.

What does it take?

Short answer – not a lot! Manual CPC is a great initial strategy for new campaigns, as it gives you much better visibility over bids and the competition you’re facing.

2. Maximise Clicks – The ‘Traffic Booster’

What is it?

Maximise Clicks is a more automated bidding strategy which automatically adjusts your bids to achieve the most clicks within your set budget.

Who is it best for?

Maximise Clicks is a great choice for advertisers looking to drive traffic to their website, not necessarily just for the sake of conversions. This can be great for brand awareness campaigns, or websites which monetise traffic.

What does it take?

Maximise Clicks is another good strategy for new campaigns without a lot of historical data behind them. Simply set your maximum CPC limit and let Google’s AI make the decisions on where you should raise or lower bids.

With less hands-on management, this can work well for those with bigger budgets or less time for day-to-day maintenance.

3. Target CPA – For the Conversion-Conscious

When conversions are key but you have a limit on what you’re willing to spend for them, Target CPA is a great option.

What is it?

Target CPA uses Google’s algorithm to achieve as many conversions as possible while keeping your cost-per-conversion (CPA) at or below a set target. It not only sets limits on spend, but intelligently prioritises users who Google thinks are most likely to convert with you.

Who is it best for?

This strategy is often best for brands with clear cost/acquisition goals – particularly for businesses in the lead generation or e-commerce industries. If you have a concrete margin you need to hit, Target CPA can help get you there.

What does it take?

This is not a strategy you’d want to be using right off the bat. Google recommends that you have achieved between 30-50 conversions over the last 30 days of activity before using Target CPA, in order for it to have enough data to optimise effectively. Conversion tracking also needs to be properly set up first.

4. Target ROAS – When Revenue is Queen (or King)

What is it?

Target ROAS (Return on Advertising Spend) is a bidding strategy designed to optimise your bids for a desired ROAS, ensuring your advertising spend is working to generate more revenue for the business.

Who is it best for?

This one is best for the brands who carefully track conversion values and are focused on profitability, not just volume. If a conversion doesn’t mean much to you unless it costs less than a certain amount, Target ROAS is a great pick.

What does it take?

Again, Target ROAS requires some historical data in order to work effectively. Google recommends at least 50 conversions in the last 30 days, with accurate revenue tracking enabled, for best results.

5. Maximise Conversions – Conversions At Any Cost

What is it?

Okay, that header might be a little hyperbolic, but we mean well. Maximise Conversions, as you might have guessed from the name, lets Google automatically adjust bids to generate the highest possible number of conversions within your set budget. This doesn’t focus on margins – it’s purely conversion driven.

Who is it best for?

Maximise Conversions is best for businesses which value volume over all else. A great pick for lead generation and e-commerce brands looking to scale and grow their customer base.

What does it take?

You might be noticing a bit of a theme with these automated bidding strategies – Maximise Conversions requires at least 30 conversions in the last 30 days for consistent performance. Once again, conversion tracking is key, too.

6. Maximise Conversion Value – Quality Over Quantity

What is it?

Some conversions are worth more than others, that goes without saying. Maximise Conversion Value uses AI to optimise your bids to drive the highest conversion value (e.g. the total value of the sale made), rather than the highest number of conversions.

Who is it best for?

This one is a great choice for businesses which prioritise higher-value conversions (think premium, high-end) rather than just volume. When you’re a high-ticket item you’re not going to appeal to everyone, so this strategy is designed to help you reach your ideal customers.

What does it take?

Again, this strategy works best with at least 50 conversions in the last 30 days and conversion value tracking enabled. Without accurate data on revenue per conversion, Google won’t be able to optimise effectively for your specific business.

7. Target Impression Share – World Domination

What is it?

Rather than conversions or revenue, Target Impression Share is focused on increasing your visibility and presence in search results.

Who is it best for?

This one is particularly great for brand awareness campaigns, local businesses aiming for higher visibility, or brands with stiff competition they’re trying to get ahead of.

What does it take?

If you’re focused on conversions, this isn’t the strategy for you. If you’re looking to increase brand awareness, simply set a max CPC limit and let Google work to get your name out there. The aim is to become that name users see when searching around a certain topic – the conversions will come in time.

8. Enhanced CPC – A Bit of Both

What is it?

Enhanced CPC is a little of manual bidding and a little of automation. You can set your base bids and then let Google adjust them in real time to increase your chances of conversions, based on where they think your best opportunities lie.

However, Enhanced CPC is in the process of being ‘sunsetted’ (removed), so if this sounds like an appropriate strategy for your goals, consider Maximise Clicks for the longer-term.

Who is it best for?

This is for the advertisers who don’t want to hand over full control, but perhaps don’t have quite enough time to keep an eye on it every day. This is ideal for campaigns that already perform well with manual bidding but just need a little extra help to take advantage of the opportunities as they arise.

What does it take?

When using Enhanced CPC for Search campaigns – you guessed it – you need to have conversion tracking set up. It’s not crucial to have lots of historical data to lean on, but it certainly doesn’t hurt.

Get Bidding!

With several tailored options to choose from, whatever your business goals are there is a bidding strategy to match. As with all things, particularly when you’re leaning on automation, time is one of the most important factors – don’t expect an overnight sensation every time.

Need a little help getting things up and running? Contact us today or claim your free digital marketing audit to see how Talking Stick Digital can elevate your digital presence and help you hit your business goals.