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Business & Investment

Different types of strategy for google ads

Choosing the correct Google Ads bidding type and implementing a very special strategy for adjusting bids is critical to carrying your ad cost down.

If you don’t know what you’re actually doing, you can end up wasting your entire sum of budget in just a few clicks.

But when you know that you are making the right move, you can automatically take your campaign performance to a next level.

Just changing the profit bidding strategy can lead to an increase in conversions.

Google ads bidding strategies:

 Maximize conversions:

 Maximize Conversions is one of the easiest bidding strategies that Google Ads offers. Using the maximum daily sum of the budget that you have set, Google will automatically run your bidding for you to get you the most conversions for your money. For example, if your daily budget is $100, Google will spend it wisely to find the most conversions. If a single conversion costs $100, Google won’t bid on it for you. Before selecting this bidding method, be sure to check that you set up your daily budget amount at an affordable evel that you’re willing to spend. At the end of a campaign, check your return on investment to see if maximizing conversions lead to profitable sales. Using this strategy, you don’t have to enter any details upon setup (aside from your daily budget).

  • Maximize conversion value:

The maximize conversion value strategy method was added in August 2019 and is the newest bidding strategy on the field.

It works importantly like Target ROAS, with the Google Ads algorithm trying to maximize the return on your ad spend. The difference is that you don’t have to specify a target ROI, you just let the algorithm try to maximize all your ad spend to the best to worst of its ability.

  • Target cost per Acquisition:

target CPA bidding is a type of bidding strategy that you can use if you want to optimize conversions. If driving conversions are your initial goal for the campaign, selecting Target CPA bidding will focus on trying to change users at a specific acquisition cost.

With this strategy, Google Ads will automatically set your bids on each campaign based on your CPA. While some conversions may cost more, others may cost less to even out and align with your acquisition costs.

Target CPA bidding can be a bit tricky if you don’t know what your acquisition costs are.

Your Cost per Acquisition is simply the amount of money you can afford to spend on acquiring one customer.

For example, if you sell a product for $100, you don’t want to set your target CPA at $100. That would be breaking even when the ultimate aim is to earn profit. When selecting this bidding method, you can enter your target CPA, and you’re good to go.

  • Target return on Ad spend:

Target Return on Ad Spend is a bidding strategy that throws most for a loop.

Why?

Because it requires some math. Yes, math, is the awful, and dreadful subject that most marketers are afraid of.

But, Unfortunately, math is important in this one.

Target ROAS is the bidding strategy where Google Ads will set your bids to maximize conversion value based on the return you want from your ad spend. This number is basically percentage-based.

 

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