Bidding Strategies

 

Manual CPC (Cost-Per-Click)

Manual CPC bidding lets you set the maximum amount you’re willing to pay when someone clicks your ad. This gives you full control over how much you spend per keyword or ad group.

Key Features:

  • Full control over keyword-level bids.
  • Customize bids based on keyword value.
  • Supports bid adjustments by device, time, and location.

Example: If you set a ₹10 bid, Google won’t charge more than ₹10 per click (actual cost may be lower).

Best For:

  • Advertisers who want complete control over costs.
  • Well-defined niches or small ad groups.
  • Advanced users who can monitor performance regularly.

Enhanced CPC (ECPC)

Enhanced CPC is a smart version of Manual CPC. Google adjusts your bid automatically—raising it when a click is more likely to convert and lowering it when it’s not.

How It Works:

  • Uses your manual bid as a base.
  • Raises or lowers bids in real time based on conversion likelihood.
  • Helps improve conversion rates without losing full control.

Example: You bid ₹10. For a high-potential customer, Google may bid ₹13. For a low-converting one, it may lower to ₹7.

Best For:

  • Advertisers who want both control and automation.
  • Campaigns with limited conversion data.
  • Early stage campaigns with tracking enabled.

Manual CPC vs. Enhanced CPC

Feature Manual CPC Enhanced CPC
Bid Control Full Partial (Google adjusts)
Automation No Semi-automated
Optimized For Clicks Conversions
Learning Curve High Medium
Tip: Use Manual CPC to test keywords. Shift to Enhanced CPC to start benefiting from smart bidding once conversion tracking is set up.

Maximize Conversions

This strategy automatically sets bids to get the most conversions possible within your daily budget. It’s fully automated and doesn’t need manual bids.

How It Works:

  • Uses AI to adjust bids based on user signals.
  • Optimizes for more conversions, not lower costs.
  • No need to manage keyword-level bidding.

Example: With a ₹1,000/day budget, Google will aim to drive as many conversions as possible, even if some clicks cost more than others.

Best For:

  • Advertisers looking for easy automation.
  • Campaigns focused on lead generation or sales volume.
  • Short-term or test campaigns with tracking in place.
Note: May increase average CPA (cost per acquisition). Works best when you have at least 15–30 recent conversions.

Target CPA (Cost Per Acquisition)

This strategy focuses on getting the most conversions possible at or below a target cost per conversion.

How It Works:

  • You set a target CPA (e.g., ₹300).
  • Google adjusts bids to reach that average over time.
  • Uses real-time signals like device, location, and intent.

Example: If your target CPA is ₹300, some conversions may cost ₹250 and others ₹350, but Google aims to keep the average close to ₹300.

Best For:

  • Lead generation and sign-up campaigns.
  • Advertisers with a set budget per acquisition.
  • Campaigns with 15–30+ conversions in the last month.
Pro Tip: Avoid setting a low CPA at the beginning. Let Google’s algorithm learn and optimize gradually.

Target ROAS (Return on Ad Spend)

Target ROAS is ideal for ecommerce or revenue-focused campaigns. It lets Google optimize your bids to achieve a specific return on every rupee spent.

How It Works:

  • Set a ROAS goal (e.g., 400% = ₹4 revenue for ₹1 spent).
  • Google aims to get higher-value conversions.
  • Works best with conversion value tracking.

Example: If you sell products between ₹500–₹5,000 and set ROAS at 400%, Google prioritizes users likely to purchase higher-value items.

Best For:

  • Ecommerce and online stores.
  • Advertisers focused on maximizing revenue.
  • Campaigns with 30+ conversions and value tracking.

Target CPA vs. Target ROAS

Feature Target CPA Target ROAS
Goal Conversions at set cost Revenue at set return
Focus Conversion quantity Conversion value
Value Tracking Not required Required
Best For Lead generation Ecommerce and sales-driven businesses

When to Use Smart Bidding

Smart Bidding is ideal when you want to automate bidding based on actual performance data. It adjusts bids in real time using Google’s machine learning.

Smart Bidding Strategies:

  • Maximize Conversions
  • Maximize Conversion Value
  • Target CPA
  • Target ROAS
  • Enhanced CPC

Use Smart Bidding If:

  • You have active conversion tracking.
  • You want to save time on manual bidding.
  • Your campaigns are growing or scaling to new markets.
  • You have at least 15–30 conversions (CPA) or 30–50 (ROAS).

Avoid Smart Bidding If:

  • You haven’t set up conversion tracking yet.
  • You’re still testing new keywords or creatives.
  • Your goal is traffic or brand awareness, not conversions.
  • You need strict manual control over every bid.
Smart Transition Plan: Start with Manual CPC → Move to Enhanced CPC → Upgrade to Target CPA or ROAS after enough conversion data.