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A Brief Guide To Google AdWords Bidding Strategies

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Adwords Bid Strategy

AdWords or Google AdWords is an advertising or online marketing platform by Google for individuals or organizations looking to show ads on Google and its advertising service, the AdWords system lets the businesses to define a budget for advertising and only make a payment when people click the ads online. This ad service is highly associated with the keywords and users that utilize AdWords can make related ads using keywords that ones who figure out the web with the help of Google search engine would use. Similarly, with AdWords, at the top ads that are shown under the head “Sponsored Links” found on the right side or sometimes even above Google search results and if your AdWords ad is clicked by the user, Google search users are then redirected to your website which is advertised on AdWords. Before moving to AdWords bid strategies, methods and forms, let us take a look at the working process of the AdWords technology.

Working process of the AdWords technology: 

  1. Choose the type of campaign and name: At the start, choose the type of campaign, and it is greatly advised to pick “Search Network only” option, then give your campaign a name that suits its purpose.
  2. Select the location where you want the ads to show: In this step, make a choice that how big or small a geographic area you look to aim, and you can select all the countries, specific states of countries, counties or provinces, cities, etc. Other than that, there is also option to choose personalized and dedicated geographic locations, such as on the basis of latitude or longitude or the radius of a specific number of miles or kilometers within a particular address location. All you have to do is to click “Let me choose …”, then search for the most suitable area as per your requirements.
  3. Define “bid strategy,” and daily budget: Modify the current “Bid strategy” to “I’ll manually set my bids for clicks” as it gives you more dominance and control to help you to work conveniently with AdWords at an advanced level of comprehension. And there is always a possibility to change to one of the many automatic choices later. The daily budget is the maximum amount that Google is authenticated to each day. And most probably, you will reach that maximum level most of the time. There are several payment options offered by Google “You can make payments before your ads show (manual payments) or make payments after your ads show, and have those payments made automatically (automatic payments). Some businesses are also eligible for a Google credit line (monthly invoicing).” Keep your daily budget so that in case if you get stuck up, the checking account does not get vacant.
  4. Create the first ad group, and compose the ad: Majority of the people tend to click on the ads when the top most line contains the keyword searched by the visitor. That is why it is always a great idea to use your keywords in headline most of the time. Writing of ad is restricted to 25 characters, so for some search terms, you would need to use abbreviations or shorter synonyms, similarly, the second and third lines permit 35 characters of the text each. Another important aspect is, the ad would be more beneficial if you explain a benefit on the second line, followed by a feature or offer on the third line. However, you can always observe which order converts best. The URL needs to be the similar domain as your site, although the URL itself does not essentially have to be the specialized landing page that you redirect people to. And the last line is your main destination URL or particular selected landing page, and tracking link can also be used here.

A short demonstration of your ad template or theme is as follows:

  • Headline: up to 25 characters of text
  • 2nd line: up to 35 characters
  • 3rd line: up to 35 characters
  • 4th line: your Display URL
  1. Place the keywords into the keyword section of your account:Initiates with only single set, and include addition signs (+), brackets ([ ]), and quotes (“ “) to look briefly how many numbers of searches of each kind you will receive and while you are starting, it is not a very good idea to fill thousands of keywords. Simply, go on with a few of significant ones, and proceed.
  2. Allocate maximum cost for each click:Set the maximum price-per-click now (also known as your “default bid”), but better understand that, each keyword is practically a separate market, that shows each of the core keywords require a bid price and Google will enable you to define individual bids for every keyword later on. 

If your affordability is $5 per day rather than, say, $50, it is suitable to bid on low-cost keywords, that way your ad can be seen by as many people as it can.

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  1. Revise everything: Review your ad and keywords to make sure everything is the best possible match and also do remember to check your cost-per-click to ensure you get the positions on the page you dream for. And finally, have a look at your daily budget to be sure that you do not unwillingly ruin your revenue account without any outcome.
  2. Add the billing details: The ads will start displaying as soon as the payment is confirmed, and that’s it, you are good to go.

Important AdWords Bidding Strategies

Rather you opt to do things by yourself or automatically, the AdWords bidding strategies, which we have piled up can assist you to get steps closer to your targets.

One thing should be remembered, however, that nothing should be set up on autopilot. Constantly maintain tabs on changing and diversifying, and if you can enhance the conversions with the help of landing page testing, then keep in mind that your bidding aims can swiftly improve and change. Here are most popular AdWords strategies:  

Manual Cost Per Click (CPC):

Manual cost per click lets you keep bids at the ad group or level of a keyword. And if you look to set single bids at the keyword level, then it is going to enable the maximum control level. Ad group level manual bids give the identical bid to all the keywords or positions within that ad group. It is primarily always the perfect bidding strategy for brand new marketers who look to ensure that no over expense is made and a firm control is maintained.

Automatic Cost Per Click (CPC):

This very strategy puts forward Google control to fix up your bids (up or down) to assist give you the most clicks in the limits of your daily budget for that particular campaign. It is typically a good bid strategy to be implied if the business finds itself in a situation to continually decrease budgets for any uncertain reasons and where it doesn’t want to lose impression share too quickly. One of the cons of this strategy is that it doesn’t give a choice to fix max CPC bids at the individual keyword levels. And some keywords could be performing way better where you want to increase bids, and others are performing too poorly. If you are the user of automated bidding, then you would not be in a position to have that level of control. 

Enhanced Cost Per Click (CPC)

Enhanced CPC (ECPC) is another AdWords bid strategy that offers Google the independence to increase or decrease your bids by a proportion of around 30%, and Google lets us know that the historical conversion data is used and their algorithms to anticipate which searchers are probable to lead to a conversion and which are not. If a conversion is about to occur, the Google will enhance your maximum CPC bid by up to 30% margin, and do in contrast for conversions that are very unlikely to happen. According to Google, “ECPC can help you get more conversions while maintaining or reducing your cost per conversion.” In case you are feeling some anxiety, give it a try on a little or low profiled campaign first and track the cost per conversion, the rate of conversion, and conversion volume as apples to apple match. At times, it is a standard bid setting when making new campaigns, so keep in mind that if you do not look to use it at that given specific time.

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CPA Bidding (Conversion Optimizer):

CPA Bidding, which is also called conversion optimizer, enables Google to maintain bids to average a specific cost per conversion target that is set. Depending on the history of your AdWords account and volumes of conversion, CPA bidding requires minimum 15 conversions over a time run of-of 30 days to be active. If that stipulation is achieved, the CPA bidding can only be reverted by budget caps maintained. The majority of the times, CPA bidding is majorly efficient on the AdWords Display Network vs. the AdWords Search Network where keyword intent could be too mainstream that it might lead to a conversion. Similar to all AdWords bidding strategies, be sure to track prior performance and match it with post-performance after you practiced a new bidding strategy. 

CPM Bidding (Cost Per Thousand Impression):

It is just present for Display network campaigns (like remarketing), CPM bidding permits you to keep target bids that add after 1,000 impressions. The Google once enabled max CPM bidding, but then, has changed it to what we call and termed as Viewable Cost Per Thousand Impression bidding (vCPM). This AdWords bid strategy does not charge you for clicks. However, it will charge for the number of impressions of your ads no matter if they are being displayed at the lowest position where the users never see them.

Flexible Bid Strategies

The flexible bid strategies can be easily found within your AdWords shared the library, and as soon you go there, you will figure out the option to select from six contrasting and different flexible bid strategies. Which are as follows:

> Enhanced CPC: It is the same as we already have discussed earlier with the option to increase or decrease bids by 30 percent.

> Target page location: If the ads are giving positive results above organic search results or even on the sidebar, then in such case, this bid strategy is worth testing.

> Target CPA: Target CPA bidding allows you to add as much or as few campaigns as you would need to share the same CPA targets. It is something very identical to the way default AdWords shared budgets operate.

> Target is outranking share: In case if you are you dependent on all of your targets on how much you can outrank a specific competitor? Then this very strategy is made for you so stop looking here and there.

> Maximize clicks: Maximize click bid strategy is similar to the automated CPC bidding, but be careful about the fact that it takes you to bad quality clicks which could lead to poor quality conversions.

> Target return on ad spend: If you have found a particular ROI that you want to hit with respect to your PPC expenses? Target return on ad spend (ROAS) is a ratio that can be set so that the conversion values or Google Analytics income values, can be tracked.

Thus, it’s recommended to undergo Google AdWords certification to excel the process of learning Google AdWords Bidding Strategies.

Deepesh Sharma, a Technologist, a Digital Marketeer and an Inbound Specialist at Digital Vidya. Things which people are using in marketing or is taught these days in MBA has become conventionalDeepesh always try to find out some unconventional way to crack the growth. Whether it’s Lead Generation or Customer Acquisition or Conversion Optimization, he is an expert in all areas of Digital Marketing. Currently I heads the Inbound Marketing at Engaging Ideas which have 2 brands: Digital Vidya & Whizlabs Software. His key responsibilities includes Managing the byer lifecycle in converting him from Visitor to a Lead and to Sale. He Lead he takes care Email Marketing, Webinar Management, Website Conversion Optimization etc and always try out for Gurilla Marketing. Deepesh is HubSpot Inbound Certified Marketeer. Deepesh is very passionate about learning new things. While Engineer he found himself a bit attracted towards creativity, so he started his career as a freelancer in Video editing then he became Video Marketer, a YouTube expert and trainer for Digital Vidya and Vskills(A Government of India Initiative) for Certified Digital Marketing Master Course (CDMM). Now he lead the Digital Domain for Digital Vidya. He is a result driven optimist person, passionate about his responsibilities and with good Product Management Skills. He found his leadership skills at AIESEC when he was the organizing Committee President for Utsav 2011, where he led a team of 4 vice presidents and 60 volunteers for the event. Additional to that he loves to listen music in his spare time.
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