Bid Strategy

A bid strategy is a decision that determines the amount an advertiser is willing to pay for a specific advertising campaign or individual ad placements.

When setting up a Google Ads campaign, it's important to select a bid strategy that aligns with your goals, such as conversions, clicks, impression share, and conversion value.

Your bid strategy informs Google how you want to bid in ad auctions, where you'll compete with other companies in your industry who also run ad campaigns on Google Ads.

How To Choose A Bid Strategy

The bid strategy should be chosen based on the campaign objectives.

Typically, businesses aiming to increase e-commerce sales focus on conversions and conversion value, while those looking to boost brand awareness prioritise impression share and clicks to drive website traffic.

What Bid Strategy Options Are There?

Below are the bidding strategy options that can be chosen on Google Ads during the campaign implementation process:

• Automated Bid Strategies
• Maximize Clicks
• Maximize Conversions
• Maximize Conversion Value
• Target Impression Share

You can establish the average amounts you're willing to pay for every thousand impressions, per acquisition, and the desired return on ad spend percentage.

A Typical Bid Strategy Mistake To Avoid

Although many Google Ad Specialists will disagree with our agency, one mistake we recommend avoiding is setting up a target ROAS (return on ad spend) or CPA (cost per acquisition) to provide better control over your Google Ads campaigns and prevent unnecessary spending.

Google provides Smart Bidding technology, which utilises AI tools to offer bidding recommendations based on historical ad performance data.

We recommend following the bidding Google recommendations if your conversion tracking and campaign goals set-up is configured accurately. This way, the bidding recommendations will be 100% relevant to your campaigns which we have found increases the ROAS of your campaign naturally.