Google Ads provides businesses with a lot of different ways to create ads and campaigns, manage ads, control budget, and measure results. But, if you want to optimise your ads to perfection, then it’s very important that your ad set-up matches your overall business goals.
The Google Ads bidding system is no exception. Below, you have a quick guide to Google Ads bidding: how to set bids and optimise spending your budget.
What Is Google Ads Bidding?
Google Ads runs an auction every time there is an ad space available. When you select your preferred audience and search phrases (or keywords), Google will try to match your requirements. But, since it’s likely multiple businesses have similar requirements, every match goes through this auction.
The auctions will decide which ads will actually show up before the user, and your bid will place you in the fighting ring. There are different focuses when it comes to bidding:
- Clicks – when your goal is to have people visit your website. Here, you will pay per click;
- Impressions – when you want to increase brand visibility, and you will pay per impressions;
- Conversions – when your goal is to sell, get leads or other actions, and you pay per each action;
- Views – for video ads run on the Display Network.
It’s essential to correlate the type of bidding you want to your overall goal to optimise how to spend your budget. For instance, if you’re interested in increasing traffic, then you should adopt the cost-per-click bidding strategy.
If you made a mistake and chose the pay-per-impressions, Google will charge your account every 1000 impressions. However, impressions mean your ads appeared in the search results page, but users didn’t necessarily click on them to view the landing page. As a result, you are spending money on the wrong action.
Bidding Setup and Basics
Setting budgets and bids can be done easily in your Google Ads account as you’re designing the ad. The budget refers to the total amount of money you want to spend on your Google Ads campaign, while the bid refers to how much you’re willing to pay for each click on the ad.
Choosing the bid amount is a bit tricky, as it really depends on:
- Your type of campaign
- The cost of your keywords
- How relevant your keywords are in terms of chosen audience, target placement, user intent, etc.
If you’re just starting out and want to run ads on the search network, you can choose the cost-per-click bidding and pay for each click. You will have to set up a maximum bid and tell Google what’s the most you’re willing to pay for a click, and the service will never go over that.
You may also be interested in Google Smart Campaigns, a new type of default campaigns designed to help businesses better promote their products and services. If you want to start to use smart campaigns, you’ll only pay for clicks and verified calls. The bidding is dynamic and will vary depending on ad quality, or how competitive your market is. If you want to learn more, check out the Smart Campaigns Get Insights section on Google Support.
How Smart Bidding Works
Smart bidding is another bidding strategy that handles your bids to support your business goals over time by using user behaviour trends. When the ads system predicts a conversion, it will try to repeat this success. The more it does, the more it learns about user behaviour. This way, Smart Bidding will increase the bid amount when it knows the ad is relevant and is likely to convert.
You can even run Smart Campaigns that have smart bidding enabled. For instance, you can run a verified calls ad to promote your business phone number and generate more direct contacts from potential customers. This means that on top of getting phone calls, you can also trace how many calls have come directly from your campaign.
And once you figure out a campaign budget, you can enable the smart bidding function and let Google ads streamline bidding for you, based on data it accumulated over time. This strategy works best if you plan on running long-term campaigns to give the system enough time to perfect its bidding.
Australian Internet Advertising Is Here to Help
If you’re having problems optimising your bidding strategy, setting an appropriate budget, or aren’t really sure why your Google Ads campaigns aren’t delivering, the Google Ads Experts at Australian Internet Advertising can help. Book a free 30-minute strategy session with us now to find out what it takes to run converting ads.