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What is profit bidding strategy?

Google updates its ad platform on a regular basis, with most of them being minor tweaks or new feature types to try out. However, Google likes to shake things up every year or so by deleting or adding a new profit bidding technique. Don't worry, you haven't been missing out on any recent significant news! However, given the key strategic alterations that all markets have surely had to make in these uncertain times, let's take a look at our current bidding strategy alternatives and how to effectively employ them!

What is the definition of bidding strategy?

In the most basic terms, your bid tells Google Ads that you're willing to pay up to a particular amount (with a maximum cap) every click/customer/dollar of income.

To reach your intended outcome, you must establish a bidding strategy that corresponds with your budget and customer acquisition goals. If you set it too high, you'll likely appear at the top of the page, but your budget will be depleted before you realize it. If your bid is too low, you may obtain a higher return, but Google Ads will give you fewer impressions, resulting in fewer customer acquisitions.

Why is it important to go over your bidding strategy?

You can find that one week your campaign is generating a lot of traffic and conversions, but the next week it's failing to get noticed. Although the ebb and flow of marketing are unavoidable, the impact on your bottom line is something you can manage. When it comes to paid advertising, modern digital marketers have a lot to think about, and it only takes a few modest tweaks to substantially reduce costs and enhance profit. You can set bid minimums and maximums as an advertiser to ensure that Google stays within your parameters. Remember that bid caps are only accessible for portfolio use; they aren't available for individual campaigns.

Manual or automatic?

It's not as simple as selecting "automatic" and beginning to receive payments from Google Ads sales. The majority of individuals choose automatic since no one wants to constantly alter bids when conducting many campaigns. However, to get the most out of it, one must guarantee that their plan is reviewed every two weeks or so. This is to ensure that your return on investment (ROI) is maximised. Manual is the preferred way to go if you are looking to ensure that you get the highest possible returns or if you see that the otherwise is not working so well for you and you are investing more than you should or more than you are making out of it.


It's vital to choose the correct bidding type and adopt a sound strategy for modifying bids if you want to reduce your ad costs. It is very easy to blow the budget if you are not aware of what you are doing. When you make the right decisions you take the game up a notch and increase performance to unprecedented heights. Simply altering your bidding techniques can result in a significant increase in conversions.


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