Bidding Strategies

 

Bidding Strategies

Introduction

Bidding strategies determine how much an advertiser is willing to pay for an ad placement in online advertising platforms like Google Ads or Facebook Ads. The right bidding strategy ensures optimal ad visibility while controlling costs. Choosing the right approach depends on campaign goals — such as clicks, views, or conversions.

Types of Bidding Strategies

• Manual Bidding: The advertiser sets the maximum cost per click (CPC).
  Example: A small business manually sets ₹10 per click to maintain budget control.

• Automated Bidding: The platform automatically adjusts bids for better performance.
  Example: Google Ads automatically increases bids for keywords with higher conversion chances.

• Target CPA (Cost Per Acquisition): Focuses on achieving a specific cost per conversion.
  Example: An insurance company sets a ₹300 target CPA for each new policy inquiry.

• Target ROAS (Return on Ad Spend): Aims to get maximum revenue for the money spent.
  Example: An online store sets a ROAS of 400%, meaning ₹4 earned for every ₹1 spent.

• Maximize Clicks or Conversions: Automatically increases bids to generate as many clicks or conversions as possible within the budget.

Benefits of Effective Bidding

• Ensures cost-efficient ad placement

• Increases chances of ad visibility

• Helps meet campaign goals (sales, leads, traffic)

• Balances budget control with performance

Example:
An electronics brand uses automated bidding to promote a festival sale, allowing the system to prioritize high-performing keywords.

Related Article:  Bidding Strategies |  Quality Score  |  Ad Rank  |  Ad Extensions  |  Ad Targeting  |  Key Performance Indicators (KPIs)