PPC

Understanding Google Ads Bidding Strategies

By 
John Kornegay
December 26, 2022

Google Ads offers several options for bidding on pay-per-click (PPC) campaigns, each with its own benefits and drawbacks. Choosing the right bidding method can make a significant difference in the performance of your PPC campaigns and the return on your digital marketing budget.

In this article, we'll explore the different bidding options available in Google Ads and the pros and cons of each, to help you decide which method is right for your business.

What Is Google Ads Smart Bidding?

Smart Bidding in Google Ads is a form of automated bidding that uses machine learning to optimize bids for conversions or other performance goals. By analyzing real-time data, Smart Bidding can make accurate predictions about bid amounts and conversions, allowing advertisers to maximize their budget effectively.

Smart Bidding is particularly useful for campaigns with no conversion data or those with a high volume of conversions. However, it requires a significant amount of data and historical performance to work effectively.

Google Ads Smart Bidding vs. Automated Bidding vs. Manual Bidding

There are three main options for bidding on PPC campaigns in Google Ads: Smart Bidding, automated bidding, and manual bidding. Each has its own advantages and disadvantages, depending on the specific needs and goals of the campaign.

  • Google Ads Smart Bidding: Smart Bidding allows advertisers to set up precise bids for every auction based on performance goals. It is best for campaigns with no conversion data or a high volume of conversions, and requires a significant amount of data and historical performance to work effectively.
  • Google Automated Bidding: Automated bidding uses automated rules and additional data points to adjust bids based on the advertiser's goals. It is a good choice for campaigns with well-defined goals and a clear performance history.
  • Manual Bidding: With manual bidding, advertisers set their own maximum CPC bid, which serves as the default bid until it is changed. This method requires the advertiser to have a good understanding of their target audience and the performance of their ads, as well as the time to monitor and adjust bids manually.

Ultimately, the choice of bidding method will depend on the specific needs and goals of the campaign, as well as the resources available to manage it. Advertisers should carefully consider their goals, target audience, budget, and resources when deciding on a bidding method.

In conclusion, choosing the right bidding method is an important decision for advertisers looking to optimize their PPC campaigns and get the most out of their digital marketing budget. Google Ads offers three main options for bidding on PPC campaigns: Smart Bidding, automated bidding, and manual bidding.

Smart Bidding is a form of automated bidding that uses machine learning to optimize bids for conversions or other performance goals. It is particularly useful for campaigns with no conversion data or a high volume of conversions, but requires a significant amount of data and historical performance to work effectively.

Automated bidding is another option offered by Google Ads, in which the platform uses automated rules and data points to adjust bids based on the advertiser's goals. This can be a good choice for campaigns with well-defined goals and a clear performance history.

Manual bidding is the traditional method, in which the advertiser sets their own maximum CPC bid, which serves as the default bid until it is changed. Manual bidding requires the advertiser to have a good understanding of their target audience and the performance of their ads, as well as the time to monitor and adjust bids manually.

Ultimately, the choice of bidding method will depend on the specific needs and goals of the campaign, as well as the resources available to manage it. Advertisers should carefully consider their goals, target audience, budget, and resources when deciding on a bidding method.

RELATED ARTICLES
READY TO DESIGN
YOUR BRAND?

Connect with Inside Leads today! Let us put your brand on the map with our tailored digital marketing solutions. Click here to book your FREE consultation. Let's grow your business together!

CONTACT US