Manual Bidding Strategy mainly depends on AdWords! AdWords offers several bid strategies that are tailored to different types of campaigns. Depending on which networks your campaign is targeting, and whether you want to focus on getting clicks, impressions, conversions, or view you can determine which strategy is best for you. In this article, we’ll describe which manual strategy you can use to increase your reach!
Manual Bidding Strategy
Advertising or an online marketing platform for people and companies who are interested in advertising services are called Adwords or Google Adwords. Payment is initiated only when people click online and the Manual Bidding Strategy aids the businesses to fix a budget for advertising. There are few adwords termed as sponsored links on the right-hand side or on the top when clicked by the user will take you to another page advertised on ad words. In short ad, words are related to the usage of keywords and there can be many related ads made by these keywords.
Important Adwords Bidding Strategies
Here are few adwords bidding strategies for helping you to reach your targets. If you are able to improve the conversions by the aid of landing page testing then you are benefited as your bidding aims will enhance drastically.
Manual Cost per Click (CPC)
For letting you keep the bids at the ad group or at the level of a keyword Manual cost per clicks is used. A maximum control level is enabled if you are searching for single bids at the keyword level. Giving the ideal bids to all the keywords or positions inside the ad group, ad group level manual bids are used. For those who are looking to curb the expenses and maintain it properly, this is an ideal use.
Enhanced Cost per Click
For increasing or decreasing your bid by a percentage of around 30 %, ECPC is another adword that offers independence to the Google. Algorithms of used historical data to predict the searchers predictable to see a conversion to see a lead conversion and those who are not too and the credit goes to Google. A maximum CPC bid of 30 % margin will be increased by the Google if a conversion rate occurs. While maintaining or reducing your cost per conversion ECPC will help you provide more conversions.
Automatic Cost per Click
For fixing up your bids this very strategy initiates Google control to help you in achieving more clicks with respect to daily costs for a particular campaign. If the business for uncertain reasons is in a situation to decrease the costs and doesn’t want to face a failure then this is the best strategy to choose. At the individual keyword levels, it doesn’t give a choice for fixing the bids and this is the only drawback. The user who wants to use automated bidding cannot have the level of control.
CPM Bidding (Cost per Thousand Impression)
Display campaigns like re-marketing are in need of CPM Bidding and this allows to keep the target bids that increase after 1000 impressions. Earlier it was called as CPM Bidding and now it has been changed to Cost Per Thousand Impression bidding (vCPM). There is no charge for clicks when you use this strategy. But you will be charged for the number of an impression of ads irrespective of its position (even if it is placed in the lower end of the page).
CPA Bidding (Conversion Optimizer)
Conversion Optimizer is the other name for CPA Bidding helps Google to handle a bid for getting a mean of specific cost per conversion target. For running the CPA bidding it requires 15 conversions for a period of 30 days and it also depends on the adwords account and volumes conversion. Adwords Display network vs Adwords Search network and keyword intent might lead to a conversion during the mainstream. Just remember the input and compare it with the output after this bidding.
Different Types of Flexible Bidding Strategies
Enhanced CPC: As discussed earlier, it is an option to increase o decrease the bid by 30 %
Target Page Location: If positive results are visible on the sidebar or above organic search results by the ads then it is worthy of testing.
Target CPA: For sharing the CPA targets adding few campaigns are allowed by the CPA target and it is very similar to default adwords.
Target Is Outranking Share: IF you are relying on the targets on outranking a specific competitor then this is the right place.
Maximize Clicks: Automated CPC bidding is the same as this strategy and the only drawback is it will lead you to poor quality clicks.
Target Return on Ad Spend: With respect to PPC expenses if you have seen a particular ROI then this strategy spent on ads (ROAS) needs to be set so that Google analytics budget values can be tracked.
How Much Should I Bid on Google AdWords?
Bid management is actually a fairly complex process. When determining how much you should bid on a single Google AdWords campaign, you’ll want to consider:
- The average CPC of your chosen keyword(s). Different keywords will cost more than others due to volume and competition levels. If you really want to have placements for high competition keywords, you’ll need to bid more. Keyword research tools like SEMrush can show you the estimated CPC of individual keywords.
- Your budget. If you have a smaller budget and want to make it go further, consider bidding on lower cost keywords or making smaller bids.
- Your ROI. Google AdWords is typically used for customer acquisition, so while a few dollars for a single click or conversion can seem expensive, it is often worth the investment. If it costs $5 to get a conversion, but it immediately brings in $15 in pure revenue, that’s not a bad deal, especially when considering that the customer lifetime value (LTV) may be closer to $450.
You need to keep all of these factors in mind when deciding how much you want to bid on Google AdWords.
Adjusting Your Bids
As you’re monitoring your campaigns, you may notice different scenarios that could indicate that it’s time to adjust your bid. You can adjust your bid at any time during the campaign’s lifespan.
Scenarios Where You May Want To Adjust Your Bid Include:
- If your CPC is coming in way under budget, but you want to improve your position in the ad display, increase it.
- If your CPA is too high, but you’re in a top position in the ad rankings and you want to stick with the keyword, drop your bid slightly. This can bring the CPA down while still getting you placements.
- If you’re getting a ton of conversions, but your profit margin is low, change up your bid.
- If you’re paying for a lot of clicks but not getting conversions, switch up your bid strategy or change your keywords.
Good bid management is an ongoing process. The market is constantly changing and if you aren’t changing your bids in response, you can quickly find that either your ads aren’t showing or you’re paying too much for your clicks.
Mistake You Need to Avoid While Running a Bidding Campaign
AdWords bid management can be complex, so it’s not much of a surprise that mistakes can be made. Unfortunately, these mistakes can cost you a heck of a lot of money that could have better spent being invested correctly.
Here are the four most common AdWords bid management mistakes to avoid:
- Not monitoring your campaigns. “Set it and forget it” is never a good idea for any PPC platform and AdWords is no different. Keep an eye on your campaigns to see how well they’re performing and what they’re costing you. Adjust as needed.
- Not split testing. A/B testing makes it possible to determine which bid levels and keyword groups are most cost-effective for your business. Consistent split testing will consistently increase the ROI of your campaigns.
- Using one bid across all campaigns. Different keyword groups will cost more and that’s okay. Sometimes, it’s worth it to pay a significantly higher CPC if it helps you beat out your competition. Consider which keywords may be more important to your business. You may find, for example, that “laptop repair center Philadelphia” will bring you more lucrative clicks than “laptop repair shop reviews”. Some campaigns might bring you leads, while other bring you direct sales.
- Making bid adjustments too quickly. While Google AdWords can drive immediate results, sometimes that’s just not the case and making rash bid adjustments based on immediate information can hurt your campaigns. Sometimes it will take a few days for customers to come back around and convert, and if you don’t account for conversion delays, you’re operating on incomplete data.
By avoiding these common bid management mistakes, you should be well on your way to set up a profitable bidding strategy.
CPM Bidding Strategy – Importance!
Using a CPM bidding strategy also does not guarantee the best result with regards to impressions. It’s quite possible that a CPC model could, in fact, generate more impressions at a lower price than a CPM model – the only difference is you will be billed for the click.
Most importantly, you must consider the difference between an impression and an ad view or ‘acknowledgement’. An impression indicates that your ad has appeared on a page somewhere, therefore it can potentially be seen.
Consider the screenshot to the left. There are well over 20 promoted content placements on this page, each of these links or creative has received one impression as a result of me loading the page. In reality, I only took notice of a small handful
So Which Bidding Strategy Is Best To Use?
You’ve probably figured by now that there is no simple answer to the question of which bidding strategy is best to use.
The most suitable bidding strategy depends almost entirely on what you, as an account manager, are expecting from your campaigns – as well as how your accounts structured and how much data is involved.
Successful account managers will consider the benefits and weaknesses of all bidding strategies and, where applicable, test each thoroughly to see for themselves which is most effective at meeting their business goals. As a rule of thumb, however, consider the following:
Manual CPC Bidding: Gives you total control over bidding, but you may miss out on performance opportunities AdWords detects.
Enhanced CPC Bidding: Gives greater flexibility than purely manual bidding and is designed to deliver more conversions by adjusting your bids within longer-term average CPC parameters.
Portfolio Bidding Strategy (PBS): Almost fully automated, performance-based optimization of bids across a portfolio of campaigns and keywords. Requires a consistent CPA target across the portfolio to be beneficial.
Target CPA Bidding: Automatically tailor your keyword bids to a pre-determined CPA target; however there’s no guarantee you will be able to convert at your desired volume.
Manual CPM Bidding: Pay per 1000 impressions rather than for clicks. Potentially useful for spreading brand awareness in a cost-effective way, but there’s no guarantee those users are seeing your ad, despite gaining impressions.
By the way, if you’d like help choosing the right bids for your campaigns, let me know here @ Kranthi or in the comments. I’d love to help!
What do you think? How do you approach Google AdWords bid management & Manual Bidding Strategy? How do you decide which keywords to bid more for? Leave us a comment and let us know what you think! If you would like to learn more about bidding strategies, stay tuned with us!