Let me show you the 8 different ways you can bid in Adwords. So let’s move over to the AdWords interface, all you need to do is go to Settings then you go to bidding and then under this drop-down you will see the 8 different ways you can bid.
Now manual CPC is right at the bottom where you set your own maximum cost per clicks for your ads and Google will not change it so whether you are bidding a bit less or bidding quite aggressively or a bit more, Google will bid whatever you set.
is the target cost per acquisition so it sets bids to get the most conversions possible, while reaching your average cost per acquisition goal. Now when we talk about conversions it may not be a lead or a sale it could be any conversion which you are running in your campaigns, it could be a sign up to your email list or somebody downloads a PDF or subscribes to your newsletter, whatever your conversions are, that target CPA can be set up. So if you are bidding for an acquisition cost of £10 or dollars per conversion then you can set it in there and then Google will work out how best to keep that target CPA within your budget.
Return on ad spends sets bid to help you get the most congruent value while maintaining your target return on adspend. If you want to get more clicks to your landing page, well you can potentially use this bidding. Google will set bids to help you get the most clicks within your budget.
As it states is to help you get the most conversions within your budget.
Target Search Page Location
Sets bids to help you get your ads to the top of the page or on the first page results.
Target Out Ranking share
This set bids to help you outrank another domains ad. Now some customers come to me and say “well! I want to be always on number one position”. That may not be the best strategy always. Because you may find that, when the ad is ranked between two and three, we are getting the most conversions. So you need to look at the data and then decide where you would like to rank. So just out ranking your competitors the sake of it and paying a lot more is not a good strategy, running AdWords.
Google will increase your bidding by up to 30% to get that click for the conversion. So then it’s going to adjust your manual bids up or down to help you increase conversions
Where you have total control and you don’t set your bid but your cost per click. Google is not going to change it come what may.
These are the eight different types of bid strategies that can be implemented in Google Adwords depending on the objectives of your campaign. Happy Bidding.