Bid strategies help achieve unique campaign goals but differ depending on KPIs, so what works well for one campaign might not work well for another. If the goal is to generate site traffic, the focus should be on clicks. If the goal is to drive purchases, the focus should be on conversions. There are a wide range of bid strategies out there, so we’ll focus on just a couple for now.
The key is identifying the optimal position and bid range while escaping the risk of eliminating lower performing assets.
Use case #1: Edge of page bidding
When a client is looking to maximize investment on top performing keywords, it can be costly. To keep the funnel fueled while continuing to see profit, it’s important to find innovative ways to implement cost savings. Cue bid strategies. Many reps suggest bid strategies to help advertisers stay in top position and bring in more money, so we don’t typically hear of using bid strategies to maintain a lower position. It might sound crazy, but this approach helps fuel the remarketing funnel and avoid overpaying for new users’ eyes and clicks. The key here is identifying the optimal position and bid range while escaping the risk of eliminating or neglecting lower performing assets that may just not have enough volume. Edge of page bidding is an effective way to keep costs low, especially if there’s a longer conversion process.
Suggested Reading: Making the Case for Manual Bidding
Use case #2: Automated bidding
Perhaps you’re working with a shorter conversion process and a lot of conversion data. In that case, automated bid strategies might be the best bet. Automated bid strategies help efficiently manage bids on a large scale. Quicker and more accurate than manual bidding, this approach is ideal for large, high volume accounts with immense amounts of data. There are multiple automated bid strategy models to pick from, and based on the business goals some may perform better than others. Unlike manual bidding, automated bid strategies minimize the risk of human error and allow for greater efficiency. But beware, Type A personalities — this approach requires putting a lot of trust in Google. The payoff? Increased conversions and better ROI. For more detail, check out this past post about using automated bid strategies to lower CPCs.
There’s a bid strategy for every budget and every type of client, but not every bid strategy will work correctly or immediately. It’s important to develop strict testing parameters and have at least one backup plan in the queue.