Bid strategy
A bidding strategy is how you decide in Google Ads how much to bid per auction. You either bid yourself, or let Google bid automatically towards a goal such as as many enquiries as possible.
- 3 min read
What is a bidding strategy?
Every time someone searches, Google Ads holds an auction. Your bidding strategy determines what you bid in that auction. You used to set, per keyword a fixed amount. Nowadays most advertisers work with smart bidding strategies, where Google calculates a bid per auction based on the likelihood of a Conversion.
The most commonly used strategies are:
- Manual CPC: you set the maximum bid per click yourself.
- Maximise clicks: Google gets as many clicks as possible out of your budget.
- Maximise conversions: Google gets as many conversions as possible out of your budget.
- Target CPA: Google tries to get conversions around a price per conversion that you set.
- Maximise conversion value and target ROAS: Google steers on the value of conversions rather than the number.
- Target impression share: Google tries to show your ad in a certain position for a certain percentage of the time.
Why the bidding strategy matters for your business
Your bidding strategy determines what Google steers on. If you choose maximise clicks, you get clicks, including from people who never become customers. If you choose maximise conversions, Google looks for people who are likely to make an enquiry. The same budget can deliver completely different results that way.
For a trade business the goal is almost always more enquiries at a healthy price, and ultimately more signed jobs. The bidding strategy has to fit that. And because smart bidding strategies learn from your conversions, the quality of your tracking is just as important as the strategy itself.
How a bidding strategy works
With smart bidding strategies, Google looks at hundreds of signals per search: the device, the location, the time, the exact search query and earlier behaviour. Based on that, the system estimates the chance of a conversion and adjusts your bid. A searcher who looks a lot like previous enquirers gets a higher bid, a searcher who looks little like them gets a lower bid.
An example. Say a contractor starts a new campaign for dormer windows with manual CPC. There is still little data. After a few weeks the first enquiries are in and the tracking has been checked. The contractor switches to maximise conversions, so that Google can learn which searchers make enquiries. After a few months with a steady number of enquiries per month, the contractor sets a target CPA, slightly above the average price per enquiry. That way Google keeps costs in check while the volume stays up.
Later the contractor connects the CRM to Google Ads with Offline conversions. Enquiries that lead to a job get a higher value. With maximise conversion value, Google now steers on enquiries that look like signed jobs, not just on the number of forms.
Common mistakes with bidding strategies
Smart bidding without good tracking. A bidding strategy based on conversions learns from what you measure. If you count clicks on a button or page visits as a conversion, Google goes looking for more of those actions.
A target CPA that is too low. A target that is too ambitious chokes the campaign. Google then bids so cautiously that you are hardly shown at all.
Changing too often. Every change resets the learning process. If you switch strategy or target every week, you never give the system the chance to stabilise.
Steering on clicks. Maximise clicks brings in a lot of cheap traffic, but rarely the best enquiries. For a business that lives on quotes, it is rarely the right choice in the long term.
Too few conversions. With only a handful of enquiries per month, a target CPA has too little data to work reliably.
How to approach your bidding strategy
First make sure your tracking is right. With good conversion tracking you count only real enquiries and phone calls. That is the basis for every smart bidding strategy.
Start a new campaign with a strategy that does not need too much data, such as manual CPC or maximise conversions with a budget you can afford to lose. Switch to a target CPA when you have enough enquiries per month and know what an enquiry may cost.
Want to go further? Then connect your CRM. With offline conversions and values per type of enquiry, you let Google steer on what really counts. Give every change a few weeks before you judge.
And stay critical. Smart bidding strategies do what you ask of them. It is your job to make sure you ask them the right thing. In our growth programme, that is part of the monthly fine-tuning of your campaigns.
Frequently asked questions
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Which bidding strategy is best for a new account?
For a new account with little data, manual CPC or maximise conversions usually works best. Once you are getting enquiries steadily and your tracking is right, you can switch to a target CPA. That way you first give the system the chance to learn.
What is the difference between maximise conversions and target CPA?
With maximise conversions, Google gets as many conversions as possible out of your budget, regardless of the price per conversion. With target CPA, Google tries to get conversions around a price that you set. Target CPA gives more control over costs, but needs enough data.
How long does it take for a bidding strategy to work?
Allow for a learning period of a few weeks after every major change. During that time the results fluctuate. Only judge a new strategy once that period is over and there are enough conversions.
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