The internet is helpful in our daily quest for information. We often look to the internet for research, shopping, and entertainment. Search engines use keywords to deliver the most relevant and beneficial information to your query. A keyword is a primary phrase or word that accurately defines the content you search for in the search engines.

Search engines like Baidu, Google, Bing, and Yahoo utilize complex algorithms called bots to get the desired result. The bot crawls through various websites to find an exact match to the primary keywords or the most pertinent words related to the keyword. The bot then delivers the result ordered in the search engine result pages (SERPs).

To make your website featured on the first page is a dream come true for every website owner. The reason is that research shows that most of the users on the internet hardly go to the second page to find information. Such stiff and high competition requires your website’s dedication to being featured on the first page.

Google search engine is the most prominent search engine with over 85% market share in the internet search today. It thus means that a high rank of your website could easily translate into more conversions and, therefore, more revenue and business growth. The wish to appear on the first page is not simple, even with the hard work and dedication.

The best alternative to resolve this is focusing on Google ads service, what is bidding strategy in Google ads, how does it work, and which are the best Google ads bidding strategy?

What is Google Ads Bidding? 

SO, what is bidding strategy in Google ads? A bid is generally the amount of money that an advertiser is willing to part with for a single click based on a particular keyword on Google Ads. A bidding strategy entails the plans and methods an individual takes when executing the bid. The bidding on the best bidding strategy Google Ads has three categories:

1. Cost-per-click (CPC) is the amount of money that Google will charge you for every click on your campaign.
2. The cost per mile (CPM) is the amount of money you shall pay for every one thousand impressions your ad gets.
3. Cost per engagement (CPE) is the amount of money that you pay whenever a user makes a predetermined action on your ad.

How it Works

Advertisers use keyword planner tools to know how valuable words are to their website or content. When the frequency is high, they head to the best Google Ads bidding strategy platform and check its cost. Here is an example of one of the previously mentioned keyword tools:

(Image Credit: Digital Nest)

You then have to build a campaign, where you place your ad groups, keywords, and advertisements in a nutshell. Adjustment of your bid spending happens here.

The Google ads bidding strategy system will check all advertisements that match your search. The system will automatically filter to remove ineligible keywords such as those which target different geolocation and those disapproved. The remaining ads will enter an auction-based on the rank.

The ad rank determines the rank of your advertisement on Google Ads. Ad rank accounts for the maximum bid that the advertiser is using and the quality score.

The maximum bid is the highest amount of money that an advertiser pays for a given keyword per individual click on the ad.

The quality score looks into relevancy factors such as advertisements, landing pages, and click-through-rate in Google Ads. That implies that if you have a perfect quality score, which is ten out of ten, and you have relevant landing pages and advertisements, then you can bid lower than other advertisers for the same keyword.

When you get messages that say “below first-page bid,” it means that your bid is not high enough or your quality score is not high enough. The average cost per click for each keyword that you use may vary depending on competition and quality score. For example:

(Image Credit: Disruptive Advertising)

Google ad ranker also takes into consideration the geolocation aspects. Google aims at returning the most relevant information to its users. It thus means that no matter how much your bid was and your business location is in Ohio, Google cannot display your ad in Sydney or Bangkok.

We can set-up and optimize your Google Ads for you but let’s also test your website’s SEO potential. Takes 60 seconds!

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What is Automated Bidding in Google Ads?

Automated bidding is a bid strategy Google Ads use to automatically set a bid to the campaign, which has a high probability of conversion or getting clicked. Google investigates the type of client’s gadget, its working framework, the hour of the day they conduct a search, the socioeconomics, and geographical location.

The automated bidding strategies in Google Ads require a campaign portfolio that contains various campaigns, keywords, and ad groupings. Every auction is treated differently, and the Google machine-learning algorithm uses past actions to maximize your bids.

There are various types of automated bidding, depending on your campaign mission. Let’s discuss them one by one to gauge which is best for you.

1. Maximum Clicks

The main objective of this bidding strategy is to increase your website traffic. The method is most effective when you are launching a new product when you have a consistent sales funnel. The best thing about this bid strategy is that Google Ads can set the maximum budget. The method quickly increases website traffic though the daily fund is depleted rapidly. The image below shows where to go to update your budget on Google Ads:

1. Maximum Conversion

The bid strategy is to attain as many conversions as possible within the set budget constraints. These bidding strategies in Google Ads maximize conversions for singular campaigns and not the entire portfolio. They are best applied when you have a big budget. However, it is good to take caution as this option does not have an upper or lower bid limit.

iii. Maximum Conversion Value

The technique maximizes the most significant return on investment regardless of the budget amount. The average revenue may increase, but a single campaign may end up using the whole budget.

1. Enhanced Cost per Click

This strategy aims to improve conversions while you remain in control. It uses history to determine conversions, and though the bid amount is already set, it will adjust accordingly. The bid is reduced if the probability is smaller, and it is raised when the likelihood goes up.

1. Target Return on Ad Spend (ROAS)

This strategy aims to optimize conversion value according to the target ROAS. The conversion is allocated a value, and bidding is maximized around that set ROAS. Bid limits are set and determined by the advertisers. The recommended target is dependent on the account’s past conversion information. Keep track of your ROAS using Google Analytics to determine what your recommended target is, for instance:

(Image Credit: Megalytic)

1. Target Cost per Acquisition (CPA)

The aim is to increase conversions based on the CPA you have set. You, therefore, enjoy more control over the automated bidding. The Google algorithm will place bids for you with maximum conversions based on your (CPA).

vii. Target Outranking Share

The bid strategy has the goal of remaining at the top of your competition. You can set your bid limit as Google determines the search bid. The bid strategy is available only as a portfolio.

viii. Target Search Page Location

The strategy is available in campaigns and helps increase your ad visibility on SERPs’ first page. Bids are set to improve the chances of appearing on the first page or position in the SERP. To use this strategy make sure you change where you want your ads to appear, for example:

What is smart bidding in Google Ads?

Smart bidding refers to machine automation in carrying out bidding features. Smart bidding aims to use automated features to enable you to get results for less. It uses Google’s database to enable you to make quality conversions by using algorithms that take a look at the older mechanism that resulted in conversions and choosing the best options likely to enable you to get a conversion. They do this by increasing your bids when a conversion seems likely to increase your chances of getting it.

5 benefits of Automated Bidding in Google Ads? 

There are numerous benefits an individual can get from automated bidding. Some of these benefits include:

i. Enable small business growth 

Instead of relying on an agency to carry out your Google campaign and risk the chance of getting low quality while spending a lot of money, using automated bidding is likely to save you money while providing assured services. Unlike looking for a company and getting short-changed, automated bidding’s success rate is readily available and less risky than hiring an agency you have never worked with before. It may also charge you lesser than hiring an agency enabling you to save something from your budget.

Being a small business may mean you do not have enough money to hire an agency or expert; thus, working with automated bidding saves you the negotiation stress. It ensures your bidding is done while providing you with an opportunity to learn. It provides a chance for smaller businesses to grow, enabling them to focus on what they are good at while providing the best bidding strategy Google ads geared toward conversions or increasing the business impressions.

ii. Saves you time 

Using automated bidding in Google ads bidding strategies saves you time. You can thus direct this time to better your business, improve your products, and invest in product quality, enabling your Google ads bidding strategies to achieve their goal. By automating your Google ad strategy, Google gets to decide when to increase or reduce your bidding amount providing seamless changes and increasing your chances of staying on the front page.

It also ensures you win more bids by quickly adjusting the bids to enable you to be at the top. If you do not have a marketing team or is still growing, automated bidding means you save on time you and your team can plough back into growing your business. Besides, if you are not good at managing bid strategy Google ads, automating the bidding process will save you time by ensuring you do not waste it trying to understand the process.

iii. It is convenient 

Using automated bidding comes down to convenience as it enables you to forget about bidding with a click of the button. It means you can continue to focus on the business and let the experts focus on what they are good at. Google also has access to a comprehensive database of information you may not have and are thus more likely to make better judgments and decisions concerning your bidding process than you could.

The convenience of knowing this is being taken care of is essential to enable you to shift your mind and focus on other areas of the business. Besides, it may not be a bad idea to spend an extra cost than staying awake longer hours trying to understand when to bid higher or lower. The amount of work required to analyze the bidding process and knowing when to bid higher or lower is stressful and can all be solved by automating the process. All you have to do is select your strategy and fill out the boxes and your work is mostly done, for instance:

(Image Credit: Search Engine Land)

iv. Brand awareness 

Your business can benefit from total impression share executed by automatic bidding to see your offers, products, and brand noticeable. You can take advantage of the automatic bidding to help you grow your business and attract more clients. As Google ads features focus on enabling and helping small businesses grow, you can take advantage of this opportunity to help you grow your brand and build yourself as an authority in your industry.

The amount spent on automatic bidding may be equal to or less to hiring a marketing team to help you grow your brand. However, in this case, you will not have to incur overhead costs of getting employees, an office space, or materials to use as Google does not need any of this. The automated speed of Google also means you are likely to see results faster, enabling you to return on your investment.

v. Increase traffic

Automated bidding increases your traffic, meaning more people get to know about your business and visit your site. This increased traffic enables you to stay on top of search engines and increase your conversion rates. You can also utilize this new traffic to enable you to launch new products to the market, educate potential clients on your products and how to use them or their importance.

5 Tips for Executing a Cost-Effective Google Ads Bidding Strategy

Here are a few tips on how to execute a cost effective Google ads bidding strategy.

Ensure your bidding strategy aligns with your business end goal. 

Google ads may be practical and useful; however, it does not personally know your business or cannot determine what you need if you do not tell it or align your strategic goals. Getting this right from the beginning is likely to save you a lot and ensure you do not blow your budget. For example, suppose your business strategy at the moment is improving your brand visibility. In that case, working with bidding strategies that focus on the impression is vital to improve visibility.

If your focus is increasing your conversion rate, then picking a bidding strategy that focuses on conversions is essential to help you meet your business end goal. It also ensures your budget is well spent on the things that matter to your company, enabling you to allocate your budget appropriately to help you meet your end goal.

Understanding how and when to choose automated bidding

Automated bidding is an excellent avenue for your bidding strategy. However, it may not always provide intended results or may accomplish its results earlier than expected; thus, knowing when and how to use it is essential to enable you to identify both ends. For example, if you focused on automated bidding that improves your awareness, understanding when this is achieved is essential to know what to focus on next for those running many campaigns simultaneously.

Knowing when to use which campaign strategy is essential to enable you to stay within budget and avoid overspending. It also allows you to automatically stop high-cost keywords or lower conversions, ensuring you get value for your investment and stick within your budget.

We hope that you found this article useful.

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Split your budget and optimize locations

Splitting your budget ensures you are not putting all your eggs in one basket. It also ensures you get value and saves you from making costly bad decisions. By splitting your budget, you are likely to identify which areas bring the intended results enabling you to channel more finances to areas bearing fruit while reducing money spent on those not reeling in desired results.

It also enables you to identify which areas your brand is more robust by optimizing locations. You thus can opt to put more effort in such areas to increase conversions while allocating some funds to enable you to tap into a broader market. It ensures you increase your conversions and helps you stay within your budget.

Perform in-depth research

Before you set out using a bidding strategy, carry out research to know which keywords work for your brand and which strategy is likely to bring desired results. The research entails talking to other people in your industry, experts, and looking at what your competitors are doing. By having an idea of what you want, you will likely select the right choices that assure results.

Optimize hard copy and landing pages to increase conversions

Ensure your keywords, ad copies, and landing pages are in sync to enable you to realize maximum profits and avoid wasting all the money you have put into your campaign effort. It is essential to ensure that all this is optimized to ensure you are getting value from all the traffic you create from your Google ads.

Diib®: Metrics for Your Google Ads Bidding Strategies!

After you’ve straightened out your Google Ads bidding strategies, you’ll need to closely monitor their performance. Partnering with Diib Digital will give you the confidence that you’re meeting your goals and making money. Here are some of the features of our User Dashboard we’re sure you’ll love:

• Customized Objectives give you simple tasks designed to optimize your bidding strategy
• Alerts that tell you about your Domain Authority other technical SEO issues
• Bounce rate monitoring
• Post performance
• Broken pages where you have backlinks (404 checker)
• Keyword, backlink, and indexing monitoring and tracking tools
• User experience and mobile speed optimization

Click here for your free scan or simply call 800-303-3510 to speak to one of our growth experts.