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bid strategy based on your goals


Determine a bid strategy based on your goals :-

Google Ads offers several bid strategies that are tailored to different types of campaigns. Depending on which networks your campaign is targeting, and whether you want to focus on getting clicksimpressionsconversions, or views you can determine which strategy is best for you. In this article, we'll describe how to use your advertising goals to choose your bid strategy.

Consider your Goals:-

Each bid strategy is suited for different kinds of campaigns and advertising goals. For the purposes of bidding, you'll want to consider five basic types of goals, along with your current campaign settings.
  • If you want customers to take a direct action on your site, and you're using conversion tracking, then it may be best to focus on conversions. Smart Bidding lets you do that.
  • If you want to generate traffic to your website, focusing on clicks could be ideal for you. Cost-per-click (CPC) bidding may be right for your campaign.
  • If you want to increase brand awareness—not drive traffic to your site—focusing on impressions may be your strategy. You can use cost-per-thousand viewable impressions (vCPM) bidding to put your message in front of customers. You can also use a Target Search Page Location or Target Outranking Share strategy to maximize visibility. 
  • If you run video ads and want to increase views or interactions with your ads, you can use cost-per-view (CPV) or cost-per-thousand impressions (CPM) bidding.
  • If you run video ads and your goal is to increase product or brand consideration you can use cost per view (CPV).

 

 

Focus on conversions with Smart Bidding:-

If you want to focus on conversions, consider using Smart Bidding to take much of the heavy lifting and guesswork out of setting bids. Smart Bidding is a set of automated bid strategies that uses machine learning to optimize for conversions or conversion value in each and every auction—a feature known as “auction-time bidding.” It also factors in a wide range of auction-time signals such as device, location, time of day, language, and operating system to capture the unique context of every search. 

Below are the five Smart Bidding strategies you can use.
 
  • Target cost per action (CPA): If you want to optimize for conversions, you can use Target CPA to help increase conversions while targeting a specific cost per action (CPA). Learn more About Target CPA bidding.
  • Target return on ad spend (ROAS): If you want to optimize for conversion value, you can use Target ROAS to help increase conversion value while targeting a specific return on ad spend (ROAS). Learn more About Target ROAS bidding.
  • Maximize Conversions: If you want to optimize for conversions, but just want to spend your entire budget instead of targeting a specific CPA, you can use Maximize Conversions. Learn more About Maximize Conversions bidding.
  • Maximize Conversion Value: If you want to optimize for conversion value, but just want to spend your entire budget instead of targeting a specific ROAS, you can use Maximize Conversion Value. Learn more About Maximize Conversion Value bidding.
  • Enhanced cost per click (ECPC): If you want to automatically adjust your manual bids to try to maximize conversions, you can use ECPC. It’s an optional feature you can use with Manual CPC bidding. Learn more About ECPC.


Focus on clicks with CPC bidding :-

If you're focusing on gaining clicks to generate traffic to your website, there are two cost-per-click bid strategies to consider:
·        Maximize Clicks: This is an automated bid strategy. It's the simplest way to bid for clicks. All you have to do is set a daily budget, and the Google Ads system automatically manages your bids to bring you the most clicks possible within your budget. Learn more About Maximize Clicks bidding.
  • Manual CPC bidding: This lets you manage your maximum CPC bids yourself. You can set different bids for each ad group in your campaign, or for individual keywords or placements. If you've found that certain keywords or placements are more profitable, you can use manual bidding to allocate more of your advertising budget to those keywords or placements. Learn more About Manual CPC bidding.


Focus on impressions

If you want to focus on impressions, you can try one of the following bid strategies to help maximize visibility.
  • Target Search Page Location: This is an automated bid strategy that automatically sets your bids to help increase the chances that your ads appear at the top of the page, or on the first page of search results. Learn more About Target Search Page Location bidding.
  • Target Outranking Share: This is an automated bid strategy that lets you choose a domain you want to outrank so that your ad is displayed above that domain’s ads, or shows when that domain’s ad does not. You can set how often you want to outrank that domain, and Google Ads automatically sets your Search bids to help meet that target. Learn more About Target Outranking Share bidding.
  • CPM: With this bid strategy, you’ll pay based on the number of impressions (times your ads are shown) that you receive on YouTube or the Google Display Network.
  • vCPM: This is a manual bidding strategy you can use if your ads are designed to increase awareness, but not necessarily generate clicks or traffic. It lets you set the highest amount you want to pay for each 1,000 viewable ad impressions on the Google Display Network. Learn more About vCPM bidding.

Focus on views or interactions (for video ads only)


If you run video ads, you can use CPV bidding. With CPV bidding, you'll pay for video views and other video interactions, such as clicks on the calls-to-action (CTA) overlay, cards, and companion banners. You just enter the highest price you want to pay for a view while setting up your TrueView video campaign. Learn more About CPV bidding.


About Smart Bidding:-
Smart Bidding is a subset of automated bid strategies that use machine learning to optimize for conversions or conversion value in each and every auction—a feature known as “auction-time bidding”. Target CPATarget ROASMaximize Conversions, and Enhanced CPC (ECPC) are all Smart Bidding strategies.

About Target CPA bidding

Target CPA is a Google Ads Smart Bidding strategy that sets bids to help get as many conversions as possible at or below the target cost-per-action (CPA) you set. It uses advanced machine learning to automatically optimize bids and offers auction-time bidding capabilities that tailor bids for each and every auction. Target CPA is available as either a standard strategy in a single campaign or as a portfolio strategy across multiple campaigns. This article explains how Target CPA bidding works and what its settings are.

Before you begin

If you don’t yet know what type of automated bid strategy is right for you, read about automated bidding.
Before you can set up a Target CPA bid strategy, you’ll need to set up conversion tracking.

How it works

Using historical information about your campaign and evaluating the contextual signals present at auction-time, Target CPA bidding automatically finds an optimal bid for your ad each time it's eligible to appear. Google Ads sets these bids to achieve an average CPA equal to your target across all campaigns using this strategy.
Some conversions may cost more than your target and some may cost less, but altogether Google Ads will try to keep your cost per conversion equal to the target CPA you set. These changes in CPA take place because your actual CPA depends on factors outside Google's control, like changes to your website or ads or increased competition in ad auctions. Additionally, your actual conversion rate can be lower or higher than the predicted conversion rate.
For example, if you choose a target CPA of $10, Google Ads will automatically set your bids to try to get you as many conversions at $10 on average. To help improve your performance in every ad auction, this strategy adjusts bids using real-time signals like device, browser, location, time of day, remarketing list, and more.

Settings

Target CPA

This is the average amount you’d like to pay for a conversion. The target CPA you set may influence the number of conversions you get. Setting a target that is too low, for example, may cause you to forgo clicks that could result in conversions, resulting in fewer total conversions.
If your campaign has historical conversion data, Google Ads will recommend a target CPA. This recommendation is calculated based on your actual CPA performance over the last few weeks. When you create a new campaign, Google Ads will recommend a target CPA based on your account’s historical conversion data.
When formulating a recommended target CPA, we’ll exclude performance from the last few days to account for conversions that may take more than a day to complete following an ad interaction. You can choose whether to use this recommended target CPA or to set your own.


Pay for conversions

You can choose to pay for conversions, rather than clicks when using a Smart Display campaign or a standard display campaign. Paying for conversions means you only pay when customers convert on your website or app.
The option to pay for conversions is only available when you use Target CPA with Display campaigns. 
This article explains how to set up pay for conversions for a standard display campaign or a Smart Display campaign.

How it works

Pay for conversions uses the same bidding algorithm as when you pay for clicks.
If you choose to pay for conversions, you still use the Target CPA bidding strategy, but you pay for conversions instead of clicks. You will only be billed for conversions received at the Target CPA that you set. For example, if you set your Target CPA to $10 and you get 10 conversions during a month, you would be billed $100. You will not be charged for clicks or impressions leading to the conversions.
Pay for conversions doesn't optimize for offline conversions, conversions from Google Ads Conversion Import, or cross-device conversions. If you use these conversion types, we recommend paying for clicks.
Also, pay for conversions doesn’t work with shared budgets.
Remember that although your Google Ads experience may show you pay for conversions as an option, your account may not meet the eligibility requirements. You can make sure your account is eligible to pay for conversions in a few ways. The following sections contain common reasons why your account may be ineligible, and the steps that can ensure your eligibility to pay for conversions.


About Maximize conversions bidding

Maximize conversions automatically sets bids to help get the most conversions for your campaign while spending your budget. It uses advanced machine learning to automatically optimize bids and offers auction-time bidding capabilities that tailor bids for each and every auction. This article explains how Maximize conversions works.

Before you begin

If you don’t yet know what type of automated bid strategy is right for you, read About automated bidding first. 
Before you can set up a Maximize conversions bid strategy, you’ll need to set up conversion tracking.

How it works

Using historical information about your campaign and evaluating the contextual signals present at auction-time, Maximize conversions bidding automatically finds an optimal bid for your ad each time it's eligible to appear. Google Ads sets these bids to help get the most conversions for your campaign while spending your budget.
Before switching to Maximize conversions:
·        Check your daily budget amount. Maximize conversions will try to fully spend your daily budget, so if you’re currently spending much less than your budget, Maximize conversions could increase spend significantly. 

 

 

 

About Target ROAS bidding

Target ROAS lets you bid based on a target return on ad spend (ROAS). This Google Ads Smart Bidding strategy helps you get more conversion value or revenue at the target return-on-ad-spend (ROAS) you set. Your bids are automatically optimized at auction-time, allowing you to tailor bids for each auction.
Target ROAS is available as either a standard strategy for a single campaign or a portfolio strategy across multiple campaigns. This article explains how Target ROAS bidding works and what its settings are.

Before you begin

  • If you don’t yet know what type of portfolio bid strategy is right for you, read About automated bidding first. If you have Shopping campaigns, learn more About automated bidding for Shopping campaigns.
  • Before you can apply a Target ROAS bid strategy to your campaigns, you’ll need to set values for the conversions you're tracking. For App campaigns, you'll also have to install the Google Analytics for Firebase SDK in your app. The conversion events that you are bidding on (and sending values with) should come from the Firebase SDK.

    Note: Target ROAS is currently in beta for App campaigns.
     
  • To use Target ROAS bidding, most campaign types need at least 20 conversions in the past 45 days. The exception is Search campaigns, which need at least 15 conversions in the past 30 days. To maximize results and give machine learning algorithms enough data to make informed bidding decisions, we recommend that you have at least 50 conversions in the past 30 days. It also helps if your campaign has received conversion values at a similar rate for at least a few days. For App campaigns, you'll need at least 10 conversions every day (or 300 conversions in 30 days).

How it works

Google Ads predicts future conversions and associated values using your reported conversion values, which you report through conversion tracking. Then, Google Ads will set maximum cost-per-click (max. CPC) bids to maximize your conversion value, while trying to achieve an average return on ad spend (ROAS) equal to your target.
Using Target ROAS with different campaign types:
Some conversions may return a higher ROAS and some may return a lower ROAS, but altogether Google Ads will try to keep your conversion value per cost equal to the target ROAS you set. For example, if you set a target ROAS of 500%, Google Ads will automatically adjust your bids to try to maximize your conversion value, while reaching this target ROAS. To help improve your performance in the ad auction, this strategy adjusts bids using real-time signals like device, browser, location, time of day, etc. It also automatically adjusts bids based on whether or not someone is on one of your remarketing lists.
Google Ads will recommend a target ROAS value after you’ve set up a new bid strategy in the Shared library and chosen which campaigns to apply it to. This recommendation is calculated based on your actual ROAS over the last few weeks. We’ll exclude performance from the last few days to account for conversions that may take more than a day to complete following an ad click. You can choose whether to use this recommended target ROAS value or to set your own.

Example

Let's say you're measuring sales for your online women's shoe store and you want to optimize your bids based on the value of a shopping cart total. Your goal is $5 worth of sales (this is your conversion value) for each $1 you spend on ads. You'd set a target ROAS of 500% - for every $1 you spend on ads, you'd like to get 5 times that in revenue.
Here's the math:
$5 in sales ÷ $1 in ad spend x 100% = 500% target ROAS
Then, Google Ads will automatically set your max. CPC bids to maximize your conversion value, while trying to reach your target ROAS of 500%.

Bid adjustments and Target ROAS

Bid adjustments allow you to show your ads more or less frequently based on where, when, and how people search. Because Target ROAS helps optimize your bids based on real-time data, your existing bid adjustments are not used. There is one exception: You can still set mobile bid adjustments of -100%. Note that you don’t need to remove bid adjustments—they just won’t be used.

Settings

Target ROAS

Your target ROAS is the average conversion value (for example, revenue) you'd like to get for each dollar you spend on ads. Keep in mind that the target ROAS you set may influence the conversion volume you get. For example, setting a target that's too high may limit the amount of traffic your ads may get.
Here are a few tips to help you set a target ROAS that’s right for you:
  • Try setting a target ROAS based on the historical conversion value per cost data for the campaigns you'd like to apply this strategy to. This will help you maximize your conversion value, while reaching the same return on ad spend your campaigns have been getting.
  • To find your historical conversion value per cost data, you'll need to select Modify columns from the “Columns” drop-down and add the Conv. value/cost column from the list of "Conversions" columns. Then, multiply your conversion value per cost metric by 100 to get your target ROAS percent.

About Enhanced CPC (ECPC)

Enhanced cost-per-click (ECPC) helps you get more conversions from manual bidding. ECPC works by automatically adjusting your manual bids for clicks that seem more or less likely to lead to a sale or conversion on your website. Unlike Target CPA, which automatically sets bids based on your target cost-per-conversion, ECPC will try to keep your average CPC below the max CPC you set (including bid adjustments) when optimizing for conversions.
For Search and Display campaigns, ECPC helps increase conversions while trying to keep your cost-per-conversion the same as you’re getting with manual bidding. For Shopping and Hotel campaigns, ECPC helps increase conversions while trying to maintain your same overall spend.
In this article, we’ll explain how ECPC works and how it can help you get more value for your ad budget.

Before you begin

To use Enhanced CPC with Search, Shopping, or Hotel campaigns, you’ll need to set up conversion tracking. You don’t need conversion tracking to use ECPC with Display campaigns, but conversions will help you see whether your ads are effective.
If you’d like to learn about ECPC for Shopping, read how to Set up ECPC for Shopping campaigns.
If you'd like to learn about ECPC for Hotels, read Enhanced CPC for Hotel campaigns.

How it works

ECPC looks for ad auctions that are more likely to lead to conversions, and then raises your max CPC bid (after applying any bid adjustments you've set) to compete harder for those clicks. If a click seems less likely to convert, Google Ads will lower your bid. ECPC will try to keep your average CPC below the max CPC you set (including bid adjustments), but may exceed your max CPC for short periods of time.

Example

Suppose you sell shoes on your site, and you've set your max CPC for US$1, and you have ECPC bidding turned on. If the Google Ads system sees an auction that looks likely to lead someone to buy shoes on your site, it might set your bid to US$1.70 for that auction. If ECPC sees another auction that looks unlikely to lead to a sale, it might lower your bid to US$0.30 for that auction.
ECPC is a form of Smart Bidding that uses a wide range of auction-time signals such as demographics, browser, location, and time of day to tailor bids to someone’s unique context, but not to the full extent of other Smart Bidding strategies, such as Target CPA and Target ROAS.
ECPC for text ads is available on the Search Network and the Display Network, but not for app installs campaigns. For Shopping ads, ECPC works only on Google Search. For Hotel ads, ECPC works when a traveler clicks a link from the Hotel ads booking module.


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