It's vital to choose the correct Google Ads bidding type and adopt a strong strategy for modifying bids if you want to lower your ad expenditures. If you don't know what you're doing, you could end up squandering your entire budget in a matter of seconds. However, if you make the correct decisions, you may elevate your campaign's performance to new heights. Changing bidding techniques alone can result in a 142.86 percent increase in conversions. We'll go over all of the different sorts of Google Ads bidding techniques and how to leverage them to your benefit in this article.
Targeted Acquisition Cost (CPA)
If you want to optimize conversions, target CPA bidding is a bidding approach you can apply. Selecting Target CPA bidding will focus on converting users at a specified acquisition cost if generating conversions is your key goal for the campaign. Google Ads will automatically set your bids on each campaign depending on your CPA if you choose this strategy. While certain conversions may be more expensive, others may be less such that your acquisition expenses are balanced. If you don't know what your acquisition expenses are, target CPA bidding can be difficult. Simply said, your cost per acquisition is the maximum amount of money you can spend on obtaining a single customer.
Ad Spend (POAS)
What is the reason for this? Because it necessitates the application of mathematics. Yes, arithmetic, that dreaded, horrible topic that most marketers avoid at all costs. Target poas in google ads is a bidding method in which Google Ads optimizes conversion value based on the return you want on your ad expenditure. This figure is expressed as a percentage.
Conversion Value Should Be Increased
The platform's newest bidding technique, maximizing conversion value, was introduced in August 2019. The Google Ads algorithm tries to optimize the return on your ad spend, similar to Target ROAS. The distinction is that you don't have to select a goal ROI; instead, you simply let the algorithm optimize your entire ad expenditure to the best of its capabilities.
Cost Per Click (CPC) Improvements (ECPC)
It's a hybrid of manual and intelligent bidding, in a nutshell. Although you specify the basic CPC for your ad groups and keywords, the algorithm is in charge of optimizing them. Google reserves the right to change the amount of your bid based on the likelihood of a sale. At your maximum cost per click settings, bids will try to average out. If a search is overly competitive and CPCs are exorbitantly high, Google may reduce your offer to make it less expensive due to a lower likelihood of conversion.
If boosting bids is an easy way to steal, Google will make the decision. On both the Search and Display networks, this kind of bidding is accessible. You can have the algorithm improve your set bids based on a certain number of conversions or optimize for conversion value. This will only work if you've set up multiple Google Ads conversions with different values, or if you've set up dynamic conversion events that track the total amount of a sale.