Google Bid Strategies are designed to help you accomplish your campaign goals. Google Ads offers several bid strategies that are customized to different types of campaigns. Depending on what your focus is, whether to get higher click rates, impressions, or conversions and on which networks your campaign is targeting, you can determine which strategy is suitable for you.
There are seven automated bidding strategies in Google Ads out of which four important Smart Bidding Strategies will be discussed in this article.
Smart Bidding Strategies on Google Ads
You should be using this bidding strategy firstly in the case where you know how much you would like to be spending per day through your campaigns within your budget. In order to get most out of this bidding strategy, you want to have at least 30 conversions within the last 30 days.
You aren't as focussed on the cost of acquisition but you are interested in the volume. So, ultimately you might end up paying a bit more for your conversions but it is going to maximize the volume of conversions you actually generate.
This bidding strategy is effective for getting information and finding out how much you would like to be generating per conversion to decide on what your target CPA is going to be and then later down the line you can use a more effective smart bidding strategy like Target CPA or Target ROAS.
In case you have an idea of how much you would like to be paying per conversion, then you can start using Target CPA bidding strategy. With this bidding strategy, Google Ads will automatically set your bids on each campaign based on your CPA.
Some conversions may cost more than your target and some may cost less, but altogether Google Ads will try to keep your cost per conversions equal to the target CPA you set.
Maximize Conversions Value will attempt to generate the greatest conversion value possible for a given budget. By using historical information about your campaigns and insight statistics such as user equipment, location, demographics or time of day, it automatically optimizes and sets the best bid.
This bidding strategy will try to spend your full daily budget since it focuses on sales growth as opposed to efficiency. It may bid higher for auctions that would result in greater conversion value than auctions with lower conversion value.
This bid strategy attempts to get as much conversion value as possible at the target return on ad spend that you set. It is important to make sure that you have a conversion tracking setup and that you have a good level of conversion value data coming through.
If you are expecting INR 6000 return from an ad spend of INR 2000, then you would set a Target ROAS of 300 percent.
INR 6000 (return) ÷ INR 2000 (ad spend) x 100% = 300% (Target ROAS)