Many small and big business focuses on Google Ads to get new leads, more customers, and advertise their products for brand awareness. Bid management in PPC is an essential task for your ads’ performance and every advertising campaign’s success. Below, you can read what bid management is and some available options when creating a new PPC campaign.
What Is Bid Management In PPC?
Bid management in PPC is your bidding strategy and the process of setting the right bids to get as many clicks or conversions as possible with your budget. When you create a new campaign on an advertising program like Google Ads, it allows you to be very specific about your budget, goals, and bid types.
Your bids determine how often your ads will appear, where they will appear on the search page, and how much you pay when people click on your ads. If you have a good bid management strategy, you can adjust your bids when needed for better results as well.
Terms That You Need To Know Before You Optimize Your Bids
Cost per click (CPC): It is a common term for PPC marketers. It means how much a click on your ads costs. When you set a maximum CPC cost, it shows to Google Ads the amount of money you are willing to pay for each person that clicks your ads. Each keyword can have a different average cost per click.
Cost per mile (CPM): In this bid option, you pay for your views instead of clicks. CPM is the cost for every thousand views on your ads.
Cost per acquisition (CPA): It is the money you want to pay for a new conversion on your website. Conversion can mean different things. You may want to get new leads or target new customers directly. In both cases, you can set the desired goal and set a maximum amount per acquisition or target CPA for an ad group.
Quality score: The quality score determines the overall quality of the ad. A good quality score can give you better rankings on the search page and more views. Many factors affect the quality score, but relevancy between the keyword, the ad, and the landing page is important.
How To Optimize Your PPC Bids
You can do some actions to optimize your PPC bid and get the most views and clicks for your campaigns. You will focus on targeting the right keywords and setting the right bidding options.
You want to find as many relevant keywords to your target audience. These keywords must have some traffic. It’s unlikely to think by yourself of all the keywords that people use to search for information on Google. However, you can use a keyword tool and get hundreds or thousands of ideas.
The Free Keyword Planner Tool by Google is available to everyone who has an active Google Ads account. When you create a new campaign, it is quite easy to search for different keywords in your niche and get relevant suggestions.
Set Bid Management Goals
Setting goals is a great way to get the maximum from your bid management strategy. Here are a few examples of goals that many internet marketers use in PPC:
- Generate traffic to your website
- Increase brand awareness
- Get more customers to take action on your site
- Get more views or interactions with your ads if you have run video ads
If you set goals, you can measure your results because you compare them with the desired result.
Bid Management Options In Google Ads
Google Ads offers many bid management options that you can combine with your goals for a complete bid management strategy:
Manual cost per click (CPC): You can set a maximum amount that you are willing to pay when someone clicks on your ads. It gives you full control of the potential expenses and allows you to set bids that are comfortable for your business.
Target cost per acquisition (CPA): You set an amount you want to pay for an action. For example, you may want to pay $10 for people that subscribe to your email list. Then, your bids will adjust to the CPA amount.
Target return on assets (ROAS): ROAS stands for return on ad spend and specifies the amount your earn for each dollar spent on advertising. It’s a way to measure the effectiveness of your ads and is more common in e-commerce businesses.
Maximize clicks: This option allows Google Ads to use the budget in a way that will generate the most clicks. It fits better with campaigns that increase website traffic.
Maximize conversions: Instead of clicks, Google Ads can use your budget to get as many conversions as possible. It will increase the number of conversions without exceeding the budget.
Enhanced CPC: It allows you to get the maximum conversions or conversion value by adjusting your bid. Your bids increase when there are more chances for your business to get leads or sales and decrease if the chances are low.
Only the manual cost per click gives you 100% control of your bids. The other bidding options are automated or smart. Google Ads use their algorithm to optimize your bidding strategy for the best results based on your goals.
Bid management in PPC is your overall bidding strategy. Each business has different goals and target audiences, so we can’t figure out a common bid management strategy for everyone. The budget and the average CPC of the keywords you target are two huge factors to consider before setting your goals and the bidding options.