Bid Strategy in Adwords

The word Strategy is originated from the Greek word stratēgia which means a Master Plan, Action plan or Game Plan which is to be followed while performing a task or activity to reach your set Target.

In Online Marketing while promoting your ads one should know  the main objective behind the ad promotion. There may be different  objectives for  ad promotion such as, getting Conversions, Clicks or Brand awareness and many more. Now here comes the role of different strategies, to campaign your ads properly to achieve your set objective.


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Adwords has basically two types of Bidding Strategies namely,

Manual CPC Bidding Strategy

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Manual CPC Bidding Strategy 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.You will not pay more than your set Max CPC for the click on your ad.

Automated Bidding Strategy

Automated Bidding Strategy is a flexible type of bidding Strategy which is basically used when strategic handles multiple campaigns at same time. It includes various types of automated strategies based on your objective. Automated Bidding Strategies, automatically performs their task to fulfil their desired Objective depending upon the historical data learning of our campaign.

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The Automated Bidding Strategy are basically categorised into three parts,

A. Conversion based Automatic Bidding Strategy.

B. Clicks based Automatic Bidding Strategy.

C. Impression based Automatic Bidding Strategy.

Conversion Based Automated Bidding Strategies

Target CPA Bidding Strategy: Also Known as Cost-Per-Acquisition bidding strategy which helps you to sets bids to get as many conversions as possible at the target cost-per-acquisition (CPA) you set. Here Target CPA is the average amount you’d like to pay for a conversion. This strategy works on the Historical Data Coversion of your campaign, hence it is recommended that you should have at least 15 conversions in the past 30 days. These strategy is basically used  to maximize the number of conversions while maintaining control over the average cost per conversion. These is  applied only on Campaign and Adgroup level.

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 Target ROAS Bidding Strategy: Also Known as Return-On-Ad-Spend bidding strategy helps you get more conversion value or revenue at the target return-on-ad-spend (ROAS) you set. Adwords 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. These Bid Strategy can be applied on the Campaign, Ad group as well as Keyword Level.


Maximize Conversions Bidding Strategy : Maximize Conversions Bidding Strategy helps to get most conversions by automatically setting your bids for your desired campaign while spending your budget. These strategy uses advanced machine learning technology to automatically optimize bids and offers auction-time bidding capabilities that tailor bids for each and every auction.


Target Enhanced cost-per-click (ECPC): ECPC bidding strategy helps to automatically higher and lower the bids if google finds the click is genuine and may lead to conversion on your website. ECPC bidding strategy is constrained by your max CPC bids when optimizing for conversions. These bid Strategy can be applied on the Campaign, Ad group as well as Keyword level.

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Clicks Based Automated Bidding Strategies

Maximize Clicks: Maximize bidding strategy helps you to set a targeted amount and adwords automatically optimise the bids to get maximum clicks. These Bidding strategy is basically recommended to use this option if you cannot track conversions or your goal is to get as many website visitors as possible. One can apply maximize clicks bidding strategy on campaign, adgroup & keyword level.

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Position Based Automated Bidding Strategies

Target Search Page Location: Adwords help to set a bid and it automatically highers & lowers your bids to show your ad on the top three results or anywhere on the first page of the search results.One can use this strategy if you want to get as many impressions as possible with your AdWords budget and to improve the average position of your ads. These strategy can be apllied  on campaign, adgroup as well as keyword level.

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Target Outranking Share: Target outranking share is an Automated Bidding Strategy. These strategy include arranging the bids to outrank your ads with leading brands. Target Outranking share bidding strategy is used to lead your ad above your competitor i.e out ranking your ad above others. You should have enough budget to spend while using these strategy.These Bid Strategy can be applied on the campaign, the ad group and the keyword level.

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Bidding Strategies Used in Display Network Only

Cost-Per-Thousand Viewable Impressions: vCPM also known as cost-per-tousand viewable impression bidding strategy helps us to set a max vCPM bid to be spent to show your ads. Applying vCPM strategy charges your ads after per 1000 viewable impressions. The higher your max viewable CPM, the greater the chance that your ad will appear.

Cost-Per-Impression: CPM is also Known as Cost-per-impression bidding Strategy helps us to set a max CPM bid to be spent to show your ads. Applying CPM strategy charges your ads after per 1000 impressions. The higher your max CPM, the greater the chance that your ad will appear.