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Google Ads Bidding Strategies: The Ultimate Guide 2022

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Contrary to popular assumption, successful Google Ads involve more than just “high bidding.” The “bid” is surrounded by much more. Although most advertisers’ primary target points are clicks, conversions, impressions, and views, modern advertisers are taking things a step farther!

To improve the effectiveness of their bidding methods, they take into account variables such as audience conversion intent, bid modifications, Google Smart bidding, and more. You are definitely missing out if you are a business owner or advertiser and aren’t making the most of the numerous flexible bidding opportunities offered by Google advertisements.

You can improve your Google Ads and give yourself a competitive edge by working with an expert in the field. A Google ads expert will assist you in selecting and optimising Google Ad Bidding strategies that are centred on your objectives.

How Does Google Ads Bidding Work?

How Does Google Ads Bidding Work?
Google conducts an ad auction each time an ad spot becomes available on a website or a search result page. The auction is a quick and frequent process even though it takes numerous factors into account for the conclusion.

Google conducts an ad auction each time an ad spot becomes available on a website or a search result page. The auction is a quick and frequent process even though it takes numerous factors into account for the conclusion.

You will enter that auction based on the bid you submit for your Google advertising. A certain ad is chosen and displayed in that space at that time based on the current bidding.

But what variables determine the position of the ads? Let’s look at it.

Important Factors for Google Ads Auction Ranking

Important Factors for Google Ads Auction Ranking
You're wrong if you believe that it all comes down to who is prepared to spend the most for their advertisements. The order in which Google ads appear in an auction is based on three key factors.

You’re wrong if you believe that it all comes down to who is prepared to spend the most for their advertisements. The order in which Google ads appear in an auction is based on three key factors.

• The highest Cost-Per-Click (CPC) bid possible for a specific keyword

• The keyword’s quality score for the ad

• The use of ad extensions and how well they relate to the keyword.

In addition to this, Google also considers a variety of other user-related factors. Geo-location, browsing habits, device, time of day, user intent, and audience type are a few examples of these variables.

Bidding Methods

There are two primary categories of bids. Automated bidding versus manual bidding (one of its subsets is – Smart Bidding). Each of these two styles of bids has its own advantages and disadvantages. Let’s look at it.

1.Automatic Bidding

You are in control of determining the maximum CPC (Cost Per Click) for your keywords while using manual bidding. You are only charged when someone clicks on your advertisement; it is not charged when it is merely seen.

The nice thing about manual bidding is that it’s simple to manage the maximum price you want to spend for each click on your advertisement. The keywords you use in your campaign are also under your control.

One drawback of manual bidding is that it can be difficult and time-consuming due to the amount of research and monitoring that is necessary. You can get advice from a Google ads expert in such circumstances.

2.Discreet Bidding

Marketers were unsure of the concept of smart bidding when it was first presented. However, Google continued to improve smart bidding over time for usability and efficiency. Any Google ads expert nowadays will strongly advise adopting intelligent bidding tactics for your Google Ads.

Google’s automated bidding tactics include smart bidding, which makes use of machine learning to optimise for conversions or conversion value in every auction.

The best element of smart bidding is using machine learning to identify users who are more likely to convert than the ordinary searcher. It offers extremely customizable performance controls as well as thorough and transparent performance reporting. Additionally, it provides a wide variety of contextual signals.

Smart bidding has drawbacks, including a potential loss of budget control and a potential loss of visibility and control over the data. Google may also represent a larger audience than your target audience. Some clever bidding bid techniques need twice your typical budget to be effective.

Best Practices for Bidding on Google Ads

Best Practices for Bidding on Google Ads

What will therefore be the most effective strategy for Google ad bidding? A higher bid will result in more conversions, but it will also result in a higher cost per conversion. Similar to raising your bid, reducing it will reduce conversion volume while maintaining your budget.

For the greatest results, it is crucial to maintain the proper balance between your conversion volume and cost per conversion.

Let’s examine the ideal methods for Google Ads bidding.


For your ads, set attainable and reasonable targets. All metrics cannot be successful at the same time. In order to correctly hit the greater metrics, you might occasionally have to forgo the lesser ones.

Choose a bidding strategy to assist you in achieving your goals after deciding what they are. For example, you can concentrate on a bidding strategy that generates impressions rather than clicks if you’re a new business and want to raise brand awareness.

2.Adopt A/B testing

You should run an A/B test on your bidding strategy. Utilize Google’s experiments and draughts features for the same.

3.Verify attribution model and conversion tracking

Make sure your conversion monitoring and attribution model are accurate and audited.

4.Performance Assessment

For the greatest outcomes, continue to assess how well your advertising are performing.

5.Condense the Account Structure

Keep your account setup straightforward and user-friendly. This will enable you to modify your offers in light of fresh tactics and information.

6.Avoid excessive bid adjustments

Over-adjusting your bids will hinder your success as well. To change or choose a new approach, it would be more prudent to wait until there is sufficient evidence.

Options for Bidding Based on Your Goals

Options for Bidding Based on Your Goals

As was already established, Google gives advertising options and flexibility when it comes to bidding. You can choose which bid option you must use based on your objectives. You can choose the finest choice for your objectives by hiring a Google ads expert.

1.Cost per click manually

With manual CPC, you can adjust your bids at the ad group or keyword level. Giving yourself the most control over your bids is to set them at the keyword level. Another benefit is that your charges are frequently lower than your CPC, though they may occasionally be at your CPC.

The disadvantage of this bid type is that it takes a lot of effort and skill to produce good outcomes. Since it doesn’t make use of Google’s machine learning technology, it also provides less thorough reports than automated bidding.

But since you can effectively monitor the cost and effectiveness, Google AdWords experts advocate this bidding strategy for new advertisers.

2.Automatically calculate CPC

With this tactic, Google is free to modify your bids up to your daily budget. This approach launches new campaigns the quickest and works best for data collection.

The drawback of this tactic is that it gives Google free rein to bid at will and prevents you from controlling CPC bids at the individual keyword level (which could be very high or very low)

3.Improvements to CPC (eCPC)

With eCPC, Google is free to decide whether to raise or lower your bids by 30%. If they forecast that a conversion is likely to occur based on their prior data, they raise the bid, and vice versa. This is a successful method for expanding your audience and improving click-through and conversion rates.

The disadvantage of eCPC is that occasionally you can see a rise in CPC and spend more than you had planned. Furthermore, keep in mind that eCPC is not a unique automated bidding approach. By modifying your manual bids, it works in conjunction with manual bidding.

4.Budget for Each Action (tCPA)

The optimal bidding option for maximising conversions at a target cost that you choose is Target CPA, CPA bidding, or the conversion optimizer. This bid option is for you if increasing conversions and leads is your main objective.

The drawback of tCPA is that shopping campaigns cannot be run with it. It does not allow for distinct bids for display network and search network advertising. To function effectively, it also needs a sound financial plan.

5.Goal Return on Ad Spend (tROAS)

tROAS is the strategy for you if you have a specified ROI that you want to attain. Only in situations where you feel safe paying up to double your typical daily budget can you use the target ROAS bidding technique. The best candidates for this bidding approach are eCommerce campaigns with fewer budget restrictions. You can employ this method if increasing your profit is your main goal.

The disadvantage of this approach is that Google requires you to enter important data, such as the product income, in order to determine which phrases would be the most profitable.

6.Price Per Thousand Bids (CPM Bidding)

Only campaigns on Display Networks and YouTube can use this bidding approach. You can specify target bids that start to add up after 1000 impressions. CPM bidding stands out most for charging for impressions rather than clicks. It is excellent for increasing brand recognition.

The disadvantage of this tactic is that you will still be charged for an impression even if the user doesn’t see your advertisement because it is shown below the fold. Another drawback is that ROI on CPM may be lower on less popular websites, while spending money on popular websites may result in your not being “seen” at all.

7.Increase clicks

Using the automatic bidding approach known as “maximise clicks,” you may receive as many clicks on your advertising as you can afford.

If you already have good conversion performance but want to increase your volume, this bidding method is best. This feature also allows you to enhance website clicks. It is the most effective method for driving traffic.

This technique has the flaw that occasionally, the clicks have a tendency to be of lesser quality, which leads to poor conversions.

8.Boost Conversions

Google automatically sets your bid when you choose the ‘Maximize Conversions’ bidding option, ensuring that you receive the most conversions while staying within your budget. This bid option works best if you want to spend your entire amount in a single day.

9.Boost Conversion Value

In this method, Google adjusts your bid to get the highest conversion value possible while staying within your budget. Google uses data on location, device, demographics, query, and more to determine the best CPC bid for each auction.

10.Market Share for the Target

Are you attempting to surpass a specific rival in rankings? The target outranking technique can help you achieve your performance objectives. You can tell Google how frequently you want your bid to outrank that of your rival by entering their domain name. This method has the advantages of raising search visibility over the competition and taking market share away from them. The only drawback to this tactic is that it can be costly, particularly if your rival has a higher quality score.

11.Share of Target Impression

This bidding option is best for raising brand recognition since it allows you to adjust your bids to maximise the likelihood that your ad will show on the search page. By showing your advertising either at the top of the page, at the very top of the page, or wherever on the Google search results page, it helps you reach your impression share objective.

The maximum CPC limit is used by this technique as the upper restriction on bids. The only disadvantage of this tactic is that it may not always result in conversions.

12.Portfolio Bidding Techniques

PBS is a goal-driven, automated technique that aids in the management of several campaigns, ad groups, and keywords. This makes it such that your offers are automatically adjusted to meet your performance targets.

The best feature of this method is that you can establish a maximum CPC so that you won’t have to worry about going over budget on a single click. Additionally, it promotes a lower CPC, which results in a reduced CPA. The drawback of this tactic is that as you withdraw from the priciest auctions, your impression share will decrease.


You are aware by this point that the winning bidder is not always the highest. Businesses may make their advertising effective even on tight budgets by utilising a variety of Google Ads bidding techniques!

Although designing and managing a successful advertising campaign may appear easy, it can occasionally be too much to handle. With the most up-to-date and effective Google Ads bidding strategies, an experienced Google ads specialist can assist you and propel your company to success.

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