Aleksandar Marić

Aleksandar Marić

How to choose Google Ads bidding strategy

Based on the advertiser’s decision and the amount he/she is willing to allocate for a particular ad click (related to his / her wishes and opportunities), bids may vary. When launching a campaign, there are several factors that will determine which bid strategy to use.

What affects the decision on the amount of bid?
Bid decisions are affected by a few segments, such as your total budget, campaign goals (depending on whether you want clicks, impressions, or conversions) and the value of a transaction on the web (for example, nobody is trying to pay 20kn per click if the product costs 15 million).

How does bid affect Google Auctions?
As mentioned in one of the previous texts, Google auctions are launched each time someone searches for a particular term or opens a web site, and so on. One of the segments that affect your ad delivery is the bid amount. If he is overpriced, the ad will not be auctioned, so there is no chance of showing it.

What are the possibilities of bidding and how are they managed?
Google offers several bid options that depend on the type of campaign, and their goal – to get clicks, impressions, or conversions.

There are two bid management modes – automatic and manual.

Manually, just as his name suggests, allows the advertiser to manually bid. With automatic bidding, Google does this job.

The difference between the manual and automatic bid
Manual bid – As mentioned before, manual bid offers an option for an advertiser to set bid-level ad groups, keywords, interests, etc. The advantage of the advertiser’s self is that if you want to set a higher bid for a particular keyword, for example.

Automatic bid – In the case of the automatic bid, the advertiser selects the daily budget and the rest of the job is left to the Google Ads system. The Google Ads system will make the optimum number of clicks and conversions within that budget based on your daily budget.

There is no recommended bid for everything that works the same way. The real bid depends on the price of clicks on the keywords that are used, the type of campaign, the target area, etc.

Most people when starting a campaign use Cost per click bid. This sets the maximum CPC bid, ie the maximum amount the advertiser is willing to pay for one click.
There are three tools that can be used to determine a CPC bid. These are:
– bid simulator;
– keyword planner;
– first-page bid estimates

About these tools, we will write in more detail in one of our following blog posts.

Finally, it is important to note that internet traffic is constantly changing and that a selected bid will not always work. That is why it is necessary to keep the bids under your eyes and constantly check them out and adapt.

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