More Bid Options and Strategies for Google Ads
In recent years, search engines like Google and social networks like Facebook have used auctions to generate their revenue. Take Google, for example, they run an auction called “Adwords” where website owners pay a certain amount of money for their ad to show up when a specific word is typed. However, the auction process is not as simple as one may think. According to AdEspresso’s blog post, there are ten types of bidding options on Google Ads. The following are the types of bidding options: Target CPA (stands for Cost Per Acquisition), Target ROAS (stands for Return On Ad Spend), Maximize Conversions, Enhanced Cost Per Click, Maximize Clicks, Manual CPC (cost per click) Bidding, Target Search Page Location, Target Outranking Share, CPM Bidding (Cost Per Thousand Impressions), and vCpm Bidding (Cost Per Viewable Thousand Impressions).
Each of these ten options has their own best bidding strategy. For instance, the blog post goes on to say that the best bidding strategy for Target CPA is to bid your true value because you set your campaign based solely on your CPA. If your goal is to maximize conversions, you would set a maximum daily budget and Google “will automatically run your bidding for you to get you the most conversions for your money”. In another example, the bidding option of Target ROAS requires a formula on how to bid. According to AdEspresso, the formula is: Sales / Ad spend x 100% = Target ROAS. These are just a few examples of how bidding strategies can take different forms as auctions increase their online presence. It’s interesting to see different strategies than the ones we learned about in class and it’s cool to be able to understand why specific strategies are dominant in certain situations.