Pay Per Click (PPC) advertisement has been known to generate fast results and has a quick conversion rate. Keyword bidding is linked to PPC as it is a strategy used to optimize your usage of your Google advertising budget. You can choose how much you want to pay for each click that a customer makes.
To figure out how Keyword bidding system works, let’s look at the two different types of strategies available. Manual bidding and automatic bidding are two categories that are at your disposal but the usage of these strategies depends on your experience.
These two are the only broad categories that have abundant different strategies under their heads. Manual bidding is generally more specific towards professional teams, whereas automatic strategies are used mainly by beginners.
Automatic bidding strategies are also known as smart bidding that come in various forms. Here are some of the most effective strategies that help you with improving your conversion rates.
1. Manual Bidding
If you’re an expert at this bidding game, you must learn how manual bidding takes place. Manual bidding is the simplest form of strategy available for you and your company to adopt. This allows you to set a certain amount for particular keywords and these bids can also be easily modified.
Using the manual bidding strategy is effective if you have a proper PPC advertising team set up for this purpose. It becomes relatively inefficient when a lot of keywords and bids are involved as they’re hard to track.
If you’re a beginner, you should have a basic understanding of how a manual bidding system works. However, many automated bidding strategies are available for you to improve your keyword bidding strategy!
2. CPC Bidding
CPC bidding is one of the most popularly strategy across the industry because of its simplicity. This type of technique is effective when you want to increase the number of visitors on your website.
You can easily increase your website traffic and have an increased conversion rate by using two different methods. Also, you can either manually increase your CPC by placing a bid on each ad or set a daily budget to increase clicks automatically.
You can use either of the CPC bidding strategies and the result would be an increased viewership of your ad or website. Using the manual way, you’ll be able to figure out the exact performance level of your keyword bidding. The automatic CPC bidding will allow you to increase the number of clicks with the use of Google Ads.
3. Target Cost Per Acquisition
Target Cost per Acquisition (CPA) has the main objective of deriving more conversions within a set budget. This keyword bidding strategy allows you to have larger control over your automatic system. You may find it easy to work with this strategy as Google provides you with a “search” and “display” bid.
This technique enables you to increase your conversion rates as much as possible. This is possible as Google provides you all possible conversions within your target cost-per-acquisition.
This type of strategy is highly effective when you’ve made a proper budget which includes costs relating to CPA. With an appropriate CPA target, you are well aware of the limit to which you can spend. This way you can manage your costs while still ensuring that you’re earning a profit.
4. Maximize Conversions
Maximizing conversions is similar to CPA but there is a slight difference to this technique. In this technique you have access to all of your budget and no limitation is placed to increase conversions.
Google will provide you with as many conversions as possible, with no restriction on your budget. This type of technique is more applicable to those accounts which have a higher conversion rate already present. Even though Google assumes no restriction, it’s better to have at least a hundred conversions per month.
The maximizing conversion technique has been recently developed as a keyword bidding strategy. It is much suited for Search Engine Market (SEM) campaigns that consist of promoting websites on search engines.
5. Target Return on Ad Spend (ROAS)
The target return on ad spend strategy is a different type of technique that focused on value as opposed to numbers. Each conversion is valued differently in this strategy.
This automated strategy allows you to achieve a high ROI. This entails that your main focus is on the sales amount as opposed to the number of sales. The number of sales may not be a good reflection for testing the effectiveness of this strategy. ROAS is supposed to be more accurate on high-value products as it complements well with them.
It is very common for the value derived to not have a particular flow. It can range from high to low returns. The target ROAS is available for your individual campaign as well as a portfolio bidding system.
This technique is available for use in website campaigns, ad groups and keywords to achieve the greatest value of conversions.
Keyword bidding strategies play an important role in improving your conversion rates. Before selecting which type of strategy to go for, make sure to assess the needs of your website.
Is your website relatively new and do you have less experience when it comes to PPC advertising? If yes, then make sure that you follow a smart bidding system as this would help you achieve your goals easily. Google helps with the management of conversions and provides you with all the possible conversions.
The various strategies available for different types of content give you flexibility. You can choose whichever one works the best for your website and your targets. You can go from maximizing value conversions to just maximizing conversions in numbers depending on your objectives.
Manual bidding strategies are highly effective for those who have a third party agency and have experience in the industry. The quick performance review can help you analyze which keywords and ads work best for you.
Keyword bidding strategies determine how much your Google Ads campaigns are likely to succeed. Also, you should be able to figure out which one of these works best for you to reach your goals!