After setting up your Google ad campaigns and putting tracking in place, the next thing to do is to start bidding. But how do you know which bidding strategy works best?

Let’s break down some of the basics

Which Google Ads bidding strategy to use?

How high you rank in Google Ads pretty much depends on how you bid. And even though your bid amount will be governed by two things, your budget and goals, there are definitely a few bid settings and strategies you should consider when giving the green light on your paid campaign.

So, first things first:

Automated or Manual bidding?

When it comes to keyword bidding, there are two options and here’s what you need to know:

Automated bidding – This is where Google adjusts your bid automatically based on how your competitors are bidding. However, you can still allocate a maximum budget and Google will work within a predetermined range to maximise your chances of winning the bid within those parameters.

Manual bidding – This allows you to set the bid amounts for your keywords and ad groups, allowing you to reduce your spending on ads that aren’t performing well.

CPA vs. bidding on branded search terms

Branded terms

Branded terms are those that are unique to your company or contain a unique service/product name within them. For example, if your company is called Osiris and your main product is accounting software, then you can use a branded term like “Osiris accounting” or “Osiris financial software”. However, there is a lot of debate on whether it’s a good idea to bid on your branded terms.

On the one hand, it could be argued that bidding on such terms that will most likely result in organic results may be a waste of time. On the other, bidding on branded terms can give you domain over the search results pages, helping you covert potential customers who are further away from the sales funnel.

For example, let’s say a prospect is looking for accounting software online and is seriously considering Osiris accounting software – in this case, a simple search on Google for “Osiris accounting software” will give them precisely the result they want, without having to scroll down the page to locate what they had searched for.

However, there is another argument which favours bidding on branded terms: your competitors could bid on them if you don’t, and that means they’ll take up valuable keyword real estate that should otherwise belong to you.

CPA

The entire idea of actually investing money upfront to convert prospects into quality leads makes most businesses uneasy – which is why they set a cost per acquisition (CPA) instead and only pay when a prospect converts into a customer.

This bidding strategy can cost more, but you’ll be safe in the knowledge that you’re only paying each time you successfully acquire a customer. So, all in all, this bidding strategy makes it simpler and easier to track and justify your ad budget.

Want to gain more valuable insight into bidding strategies and which ones are right for your business? Talk to our PPC advertising team now.

Published On: January 5th, 2023 / Categories: Content Marketing, Marketing Strategy /

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