Bidding strategies

Bidding Strategies Based On Your Goals – Ultimate Guide for 2020

Are You Choosing The Right Bidding Strategies To Reach Your Advertising Goals ?

Advertising campaign is all about making the most out of your budget. Adding the right bidding strategies will help you define your goals.

Are you making the most from your online campaign? If not, here is a quick guide as to how you can optimise your online campaign using simple bidding strategies.

Define Goal

The first and the most significant rule before starting any digital campaign is to define your goal.

 It is important to understand what you are trying to achieve from the campaign. As a result, Some companies want to improve sales and conversion, while some would want to increase their online presence.

After defining your goal, you can select the campaign type accordingly. As different campaign serves different motives.

Let’s see which bidding strategies suits your campaign best.

Conversion Focused Bid Strategy

Bidding Strategies
Source: Google Adwords

Target CPA (Cost Per Action)

It is an automated bidding strategy where Google uses machine learning to optimize the bid rather than manually adjusting the bid.

The user just needs to set target cost per action (CPA) bid at the start off the campaign.

Target CPA is one of the ways in defining your Key Performance Indicator (KPI) to optimize your account and measure its performance.

Bidding Strategies

Target ROAS (Return On Ad Spends)

Another smart bidding strategy in pay per click (PPC) campaign is ROAS. It is how much revenue you have earned through conversions for every amount spend on PPC ads.

People always get confused between return on investment and return on ad spend – ‘ROI’ and ‘ROAS’.

return on investment is focused only on calculating profits, whereas return on ad spend calculates factor in ad spends as well as operating cost and cost of goods sold.

This bidding strategy is undervalued as many advertisers think of it as a metric reserved mainly for ecommerce businesses. But if we look at a bigger picture smart bidding helps in spending less time on adjusting bids and more time on optimizing your campaign for better returns.

Clicks Focused Bid Strategy

Bidding Strategies

Maximise Clicks Bid Strategy

This strategy is the simplest way to bid for clicks. It’s an automated bid strategy which means the user needs to set an average daily budget and the rest will be taken care by Google ad which with the help of machine learning automatically manages the bids to bring most clicks possible within the set budget.

This strategy is mainly used to drive more volume to your website for the branding purpose. Also, if the conversion rate is good. It is important to set a max cpc and keep a track on average max cpc. As the machine tries to get as many clicks as possible for your campaign, but will also try to exhaust your daily budget, even if the clicks are more expensive then the than normal.

Manual CPC Bidding

It is the most known bidding strategy use in pay per click advertising campaign. It lets you manage your maximum cpc by yourself.

Also, it allows you to set different bids for each ad group in your campaign as well as individual keywords.

In a nutshell manual cpc gives you full control of running a campaign as per your needs. But the downside of this bidding strategy is that, it’s time consuming and one needs to keep a constant track of their performance.

Visibility Focused Bidding Strategy

VCPM (Viewable Cost Per Thousand Impressions)

In this strategy the advertisers pay as per the impression that are viewed. Unlike CPM where the advertiser has to pay for non-viewed ads as well.

There are standards that are defined for an ad to be consider as viewed:

For display ads, at least 50% should be visible on user’s screen for more than 1 second.

Also, it’s a great opportunity for newly formed business looking to acquire new customer as well as potential business partner. You should be careful with the frequency and the placement of your ad. Customer shouldn’t feel like they are being stalked wherever they go and make sure that the ad is not showing up on unwanted website.

Target Impression

This is a new bidding strategy where advertiser set a goal Impression share percentage.

You get 3 placement options to bid for Target Impression Share:

  • Absolute Top Page
  • Top of the Page
  • Anywhere on the Page

Based on your preferences the Google algorithm will adjust its bid accordingly.

It is always advisable to set a max CPC with Target Impression Share bidding because that will help against the overspending.

Always keep an eye on CPCs and performance to ensure the bidding Is working well for you and is helpful towards achieving your target before continuing with this strategy.

Views or Interaction Focused (Only for video ads)

CPV (Cost Per View) Bidding Strategy

This bidding strategy is used for video advertising based on the number of views or interactions you receive on ads.

The average price for a CPV ads costs around $0.03 – $0.30 depending upon the competition for a particular keyword you select.

In Google TrueView system there are two ways of showing ads on YouTube:

  • In-Stream are those ads that appear before or after or during videos on YouTube, Viewers are given an option to skip the video only after 6 seconds which are known as Bumper Ads.

Non-Skippable Video Ads which are 15-20 second ads that cannot be skipped. This guarantees people see your ad

  • In-Display are desktop only ads that show up to the top right of a YouTube video.

You can prefer CPC bidding or CPM bidding. Also, you can use this strategy for retargeting or showing your ads to people who have visited your website earlier.


So lastly, we can conclude that different bid strategy serves different purpose.

If you want to save your time you can choose an automated bid strategy which would optimize your campaign with the help of Google algorithms, but only after evaluating and choosing wisely as per your goal.

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