If you’re new to the world of paid search by bidding, you might be wondering how it all works. There are different strategies when it comes to e-commerce pay-per-click (or PPC) and how to get in on the bidding. In this piece, I’ll cover several different Google Ads bidding strategies, and how you can determine which strategy is best for your e-commerce business.
Bidding
Currently, you can take advantage of 12 different Google Ads bidding strategies.
- Target CPA
- Target ROAS
- Maximize clicks
- Maximize conversions
- Maximize conversion value
- Target impression share
- Manual cost-per-click (CPC)
- Enhanced cost-per-click (ECPC)
- Viewable CRM (cost per 1,000 impressions)
- Maximum CPM (cost-per-view)
- Target CPM (cost per 1,000 impressions)
- Portfolio bid strategies
Target CPA: If you are looking to drive conversions, you can set a target CPA that will focus on trying to convert users at your specified acquisition cost. Google Ads will automatically set your bids to meet this cost. This type of goal is used to hit targets and increase leads.
Target ROAS: This bidding strategy is when Google Ads sets your bids to maximize conversion value based on the return you want from your ad spend.
You can calculate this by the following formula:
Sales ÷ ad spend x 100% = Target ROAS
Maximize Clicks: This bidding strategy automatically sets your bids to help you get the most clicks within your set budget. This campaign works well when you have strong conversions and want to increase volume.
Maximize Conversions: Using the maximum daily budget, Google will regulate the bidding for you so you can get the most conversions for your buck.
Maximize Conversion Value: Maximizing conversion value is similar to Target ROAS, where Google will attempt to maximize the return on your ad spend. The only difference is that you will need to identify a target ROI.
Target Impression Share: This type of bidding strategy automatically sets bids to help achieve your Impression Share goal across all of your active campaigns. You have three options for Target Impression Share: on the absolute top of the page, on the top of the page, or anywhere on the page of Google SERPs.
Manual Cost-Per-Click (CPC): This type of bidding strategy allows you to set bids at either an ad group or keyword level. This allows you the most control over your budget. New campaigns benefit from this type of bidding strategy because they can see what is working and allocate funds as needed.
Enhanced Cost-Per-Click (ECPC): This type of bidding strategy is considered a smart-bidding setting that allows you to apply manual CPCs that gives Google the ability to increase or decrease your bids based on whether you have a higher or lower chance of achieving a conversion.
Viewable CPM (Cost Per 1,000 Impressions): This type of bidding strategy is only available for the Display Network and it allows you the opportunity to set target bids for every 1,000 impressions where your ad is adequately viewed.
Maximum Cost-Per-View (CPV): This bidding strategy allows you to set the highest bid you are willing to pay for a video view. Depending on the length of your ad, a video view is considered watching 30 seconds of an ad or the entire ad if it is shorter than 30 seconds long.
Target CMP (Cost Per 1,000 Impressions): Using this bidding strategy, advertisers can set the specific target CPM and Google will use the average bid you are comfortable paying for every 1,000 times they display your ad.
Portfolio Bid Strategies: Advertisers can implement a portfolio bid strategy by creating one bid strategy that is applied across multiple campaigns. These types of portfolio bid strategies are available: target CPA, target ROAS, target impression share, and maximize conversions and conversion values.
These twelve bidding strategies for Google Ads are very powerful and can be used to boost your numbers, quite a bit. If you’re still looking for some help with your PPC and strategy, though, our team would love to help. Schedule a free consultation with us today and let’s see what we can do for your business!
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Looking for more paid search tips to help you grow your e-commerce business? Check out these posts:
- What Is Paid Search (PPC) & What Are The Best Platforms For Ecommerce Businesses?
- How To Set Up & Structure Your Ad Accounts for Ecommerce Success
- What Are The Different Paid Search Ad Extensions & How To Use Them For Your Ecommerce Business?
- How To Write High-Performing Paid Search Ad Copy For Your Ecommerce Business
Laurel is a member of the executive team at Stryde. She’s been doing digital marketing for businesses for 10 years. Two years ago, she started set up her own ecommerce business selling baby gowns and knows the struggles of a small business owner. She loves talking about digital marketing, content, SEO, and conversion rate optimization.
