Paid advertising is a powerful way to drive traffic, generate leads, and boost sales, but the success of your campaigns largely depends on the bidding strategies you use. Choosing the right bidding approach can make your ad spend more efficient, while the wrong strategy can lead to wasted money and poor results. To help you get the most out of your paid ads, here are some important dos and don’ts when it comes to bidding strategies.
Do: Take Advantage of Automated Bidding
Automated bidding can be a game-changer for your paid ad campaigns. Platforms like Google Ads offer automated bidding options that use machine learning to adjust your bids in real-time based on your goals, whether that’s getting more clicks, conversions, or impressions. Automated bidding considers factors like device, location, time of day, and user behavior to help make sure your bids are competitive and effective.
One of the biggest advantages of automated bidding is that it saves you time and effort. Instead of constantly tweaking bids for each keyword or ad group, you can set your campaign goals and let the platform handle the adjustments. This is especially helpful for large campaigns with lots of keywords, where manual bidding would be too time-consuming.
Don’t: Rely Only on Automation
While automated bidding is a powerful tool, it’s important not to rely on it completely. Automation works best when combined with a solid understanding of your audience, keywords, and campaign goals. If you depend too much on automation without regularly checking in, your campaigns might not perform as well as they could.
Make it a habit to review your campaign performance and tweak things as needed. For example, if you see that certain keywords aren’t performing well, you might want to pause them or adjust your bid strategy. Staying involved and making informed decisions will help you get the most out of automated bidding.
Do: Use Manual Bidding for More Control
If you want control over your ad spend, manual bidding can be a great option. With manual bidding, you set the maximum bids for individual keywords or ad groups, giving you the ability to prioritize certain keywords based on how they’re performing or how important they are to your campaign.
Manual bidding is particularly useful if you have specific insights into which keywords work best for your business or if you’re running a niche campaign. It allows you to allocate your budget more precisely, making sure you’re getting the most value from each click.
Don’t: Set Your Bids and Forget About Them
One common mistake with manual bidding is setting your bids and then leaving them alone. The digital landscape changes all the time, and what works today might not work tomorrow. It’s important to keep an eye on your bids and adjust them based on how well they’re performing.
For example, if a certain keyword is getting a lot of clicks but not many conversions, you might want to lower your bid or tweak your ad copy to better match what users are looking for. On the flip side, if a keyword is bringing in high-quality leads at a low cost, consider increasing your bid to attract even more traffic.
Do: Try Target CPA Bidding
Target CPA (Cost-Per-Acquisition) bidding is a great strategy if you’re focused on keeping your acquisition costs under control. With this approach, you set a target cost per conversion, and the platform automatically adjusts your bids to hit that target. This is especially helpful for businesses that need to stick to a strict budget while still driving conversions.
For instance, if your target CPA is $50, the platform will aim to get conversions at or below that cost. This helps you maintain profitability and ensures you’re getting a good return on your ad spend.
Don’t: Forget Your Campaign Goals
While target CPA bidding is effective, it’s crucial to make sure it aligns with your overall campaign goals. If your main objective is to increase brand awareness, focusing solely on CPA might not be the best approach. Instead, you might want to look at metrics like impressions or reach and use a different bidding strategy that better fits those goals.
Always keep the bigger picture in mind and ensure that your bidding strategy supports what you’re trying to achieve with your campaign. This holistic approach will help you get the best results from your paid ads.
Do: Use Target ROAS Bidding for Revenue Goals
If your main focus is on generating revenue, target ROAS (Return on Ad Spend) bidding is the way to go. With this strategy, you set a desired return on your ad spend, and the platform adjusts your bids to maximize revenue based on that target.
For example, if your target ROAS is 400%, the platform will aim to generate $4 in revenue for every $1 you spend on ads. This strategy is ideal for e-commerce businesses or any organization that wants to directly tie their ad spend to revenue.
Don’t: Overlook the Importance of Quality Score
Even if you’re using advanced bidding strategies like target ROAS, don’t forget about the importance of Quality Score. Quality Score is a metric used by platforms like Google Ads to evaluate the relevance and quality of your ads, keywords, and landing pages. A higher Quality Score can lead to lower costs and better ad placements.
To improve your Quality Score, focus on creating relevant, high-quality ads that match user intent. Make sure your landing pages are optimized for the keywords you’re targeting and provide a good user experience. A strong Quality Score can make your bidding strategy even more effective.
Do: Experiment with Enhanced CPC
Enhanced CPC (Cost-Per-Click) is a hybrid strategy that gives you the best of both worlds, control and automation. With enhanced CPC, you set manual bids, but the platform can automatically adjust them up or down based on the likelihood of a conversion.
This strategy allows you to maintain control over your bids while also benefiting from automated adjustments that help you optimize for conversions. Enhanced CPC is a good option if you want to balance control and performance in your paid ad campaigns.
Don’t: Forget to Test and Optimize
No bidding strategy is perfect, and the most successful paid ad campaigns are those that are continuously tested and optimized. Conduct A/B testing to see how different bidding strategies, ad creatives, and landing pages perform. Use the data to figure out what’s working and what isn’t, and adjust your approach accordingly.
Regular optimization helps ensure that your campaigns stay effective as market conditions and audience behavior change. It also helps you get the most out of your ad spend and stay ahead of the competition.
Master Bidding Strategies for Better Results
Choosing the right bidding strategy is key to the success of your paid ad campaigns. By following these dos and don’ts, you can fine-tune your bidding approach, improve your ad performance, and get better results from your marketing efforts.
At Seven52, we specialize in creating and executing effective paid ad strategies that deliver results. Whether you’re new to paid advertising or looking to optimize your existing campaigns, our team of experts can help you navigate the complexities of bidding strategies and make the most of your ad spend. Contact us today to learn more about how we can support your paid advertising efforts and help your business grow.
