Google Ads Bidding Strategies, Do’s and Don’ts

(Client’s notes. 2)

Choosing the right Bidding Strategy, similarly to setting up other elements within the overall advertising campaign, depends on your goal, intent and the available budget that is based on your ROAS and ROI expectations.

Using Google’s Default Bid Strategy (Clicks) and Optional Max CPC

If it’s your first time creating an Ad campaign, I suggest starting with manual bidding, and later use or include other strategies as and when needed.

Be aware of Google’s default options, particularly Maximized bidding strategy, that I’ll cover in this article.

Autonomous or semi-autonomous strategies, need to be fine-tuned and are used for larger spend campaigns.

Automated bidding, Maximise Clicks and Target ROAS, are not the best conversion options, however, they can be effective strategies in some campaigns. From the options in automated bidding strategies the only that I would recommend Target CPA, that I shall cover further down.


google ads accelerated bidding
google ads
Maximize clicks bidding

Bidding Strategies: Target Search Page Location

An automated strategy option that could be useful in brand awareness campaigns, however, the bidding is done by Google and you have no control over it. Of course, you always set a budget, but here the amout of bidding in the auction is with Google.

Brand awareness is meaningless if it doesn’t generate revenue. People sometimes use the word brand awareness when their campaign is not performing and failing. That is to say, they are not looking for a true sense of monetized conversion.

We Must be able to attach financial profits to brand awareness at some stage in the process. This is possible if there is data to support it, and the money spent will pay off in the longer term.

Target search page location bidding

Manual and Automated Strategies

google ads bidding strategies

Bidding Strategies: Target ROAS

You cannot use this bidding strategy if you don’t have conversion values figured / You need to have at least 30 days of conversion value (minimum 15 conversions in the last 30 days).

If you only have few conversions per day this strategy won’t work. Data won’t be enough, hence it won’t be accurate.

ROAS, is how much more money is made from Ad spend (revenue divided by the cost of ads). As compared with ROI that considers all your business expenses including your Ad cost.

Google has a column for ROAS in the reports, it’s Called Conv. Value/Cost = (ROAS).

 target ROAS

If you try to set up this strategy in a new account with no available conversion data or not the required amount of conversion / you’ll be notified of the requirements for setting up this strategy.

google ads bidding strategies

Bidding Strategies: Target CPA Cost Per Acquisition

Outside Manual bidding and Enhanced PCP bidding, this is probably the best automated bidding option.

In this strategy Cost doesn’t matter, Google takes over Clicks that it predicts will convert and the price / Conversion value is not important for Target CPA bidding. Unlike ROAS bidding where it takes revenue into account for conversion. This is where Google’s algorithm comes in to play and based on their vast data, predictions are made.

For this, you should have at least 2 to 3 conversions per campaign so google can base its predictions on that data.

If you don’t have this data, then look at your microdata so you can attach value to your CPA campaign.

target CPA bidding strategy

Bidding Strategies: Target Outranking Share

Basically, to wipe the floor with a certain competitor. To always rank above them.

This strategy sounds like a personal matter, unless you can show that it’s part of your overall strategic plan and it will have financial benefits as part of the bigger picture.

You can set limits, but of course, your ad cost will rise in order to outbid.

A warning, keep in mind that your competitor could be using the same strategy. And only start this kind of campaign if you are certain your competitor is not in a position to outbid you.

google ads target outranking

It also takes a bit of time, give it a week or so to see the ranking results.

 target outranking
google ads target outranking

Bidding Strategies: Maximize Clicks

This is Google’s Default Setting at the Start and it is really not a good strategy.

This strategy is only useful when you need to gather data. For example, you have a new product and you want to know the demographics of those who click or show interest.

maximize clicks bidding strategy

Enhanced CPC Bidding (Semi-autonomous bidding)

You can also activate this strategy through Manual Bidding and add the Enhanced CPC to your campaign.

Giving some autonomy to Google to go a little over your Max CPC if it considers that it will lead to conversion / Google algorithm will come to play.

Giving a small amount of autonomy to Google but controlled by you and can prove to be beneficial.

It’s useful, and you can test by running two campaigns side by side for a few weeks, one Manual CPC and other Enhanced CPC, to see which performs better.

Enhanced CPC strategy

Bidding Strategies: Manual CPC Bidding

This strategy gives you full control over your auction, with every single impression.

Important to note!!!!! If you don’t override the default level bid at keyword level bid, your Ad Groups will inherit the default level bid.

For example, if at campaign level you have a $10 default bid you can vary this at the group level, say one group is 50C and other $2 and within that group you can also assign a different bid for a specific Keyword.


google ads Manual CPC
google ads bidding strategies

If you need any further information on Google Ads strategies and set up, feel free to drop me a line.

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