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When should you use automated bidding strategies in Google Ads
Choosing the right bidding strategy is what makes you achieve your goal. It’s quite common to get confused when you come to the step of choosing the bidding strategy for your campaign. The first point is whether to go with a manual or automated bidding strategy.
If you are new to Google ads setup and don’t have much hands-on experience then it’s advisable to start off with manual/enhanced CPC bidding and later move to other bidding strategies.
In my view, you must stick to the manual bidding strategy if you have:
- Small budget
- Conversion data below 50
- New to PPC ads
Google puts the below 2 bidding strategies in the manual keeping them under 1 name. These are:
Manual CPC bidding strategy: This is the non-automated bidding strategy where you tell Google to spend on a click by providing a bid cap.
Enhanced CPC: You are giving a max. bid like in manual CPC but here Google’s algorithm adjusts this bid by 100% for a keyword in an individual auction based on the likelihood that the click will lead to a sale. The most common metrics to check performance in this strategy is CTR and Conversion Rate. Also, you need to check for CPC and CPA to see whether the results are profitable.
Let’s start off with automated strategies
Automated Bidding Strategies:
- Target CPA: You must use Target CPA when you are more concerned about profitability. Here, you give a Target CPA Value and Google adjusts bids to generate as many conversions as possible under this CPA. Though individual conversions can have a CPA above or below this target CPA then Google tries to keep the Average CPA at your target CPA. For this bidding strategy, conversion tracking should be in place and there must be at least 15 conversions in the last 30 days. The more data will be there, the better Google will make decisions about conversions.
- Target ROAS: In this automated bidding strategy, you’ll give your target ROAS and Google will set bids to maximize conversion value to achieve the target ROAS you have set. Like target CPA, conversion tracking should be in place with conversion value and there must be at least 15 conversions in the last 30 days. A detailed guide on Google ads bidding strategies will make you more clear.
- Maximize conversions: Google calls it a fully automated bidding strategy. So, here no need to set bids at any level. Google’s algorithm itself choose the bid to give you as many conversions as possible regardless of the profitability. Conversion tracking must be in place. Don’t use this strategy if profitability is your main goal.
- Maximize conversion value: It’s also a fully automated bidding strategy. It’s similar to maximize bidding strategy with the difference that here Google set bids to generate as much high conversion value as possible. But again as there is no target ROAS given by you here so sometimes Google can make bad decisions. Here as well, conversion tracking must be set up with conversion value.
- Maximize clicks: In maximize clicks, Google makes adjustments in bids to get as many clicks as it can. Here you can provide the max. CPC bid so that Google will keep the CPC below that. This strategy will be just to get traffic only to your page and there no concern about your conversions and profitability. Never use this strategy if your goal lies in conversions and ROI.
- Target impression share: You will tell Google what percentage impression share you want to achieve and provide a CPC cap as well. Use this strategy only for branding or product awareness goals. It has nothing to do with ROI or Conversion volume. Never use this strategy if your goal is towards conversions and ROI.
- Viewable CPM: In a display campaign, it’s costing per thousand viewable impressions only and not just for impressions. So, it’s great to pay only for the impressions which are seen at least 50% for at least 1 sec(for image) or 2 sec(for video).
- Target CPM: In a Youtube campaign, if your focus goes on impressions of your video campaign instead of views then this bidding strategy can be the right one to accomplish your desire. Honestly speaking, I prefer going with CPV for my Youtube campaigns.
- Maximum CPV: For a Youtube campaign, you might be using this strategy most of the time. You’ll pay a cost per view-for your video ad. The view will be counted as one when the viewer watches at least 30 sec of your video ad or makes an interaction with it with a click.
In Conclusion: Use automated bidding with caution
Using automated bid strategies in Google Ads is a great way to save time while leveraging algorithms to optimize an account, but only when evaluated and chosen wisely. You have to choose the right Google Ads automated bidding strategy as per your goal. You must also read a full guide on Google ads bidding strategies.
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