What is bidding in Google Ads?

Glossary Term: Bidding and Bidding Options in Google Ads

Bidding:
Bidding in Google Ads refers to the process of setting a maximum amount you’re willing to pay for a click on your ad (CPC), a thousand impressions (CPM), or a specific conversion action (CPA). The bidding strategy you choose influences how your ads are displayed and how much you pay for them.

Key Bidding Options:

  1. Manual CPC Bidding:
  • You set individual bids for your keywords. This gives you control over how much you pay for each click, allowing for adjustments based on performance.
  1. Automatic Bidding:
  • Google automatically sets your bids to maximize your results based on your goals. You can select from various automated bidding strategies, such as:
    • Maximize Clicks: Automatically sets bids to get as many clicks as possible within your budget.
    • Maximize Conversions: Adjusts bids to get the most conversions for your budget.
    • Target CPA (Cost Per Acquisition): Sets bids to achieve a specific cost per conversion, allowing you to control how much you pay for each lead or sale.
  1. Target ROAS (Return on Ad Spend):
  • Sets bids to achieve a specific return on ad spend by adjusting bids based on the expected conversion value.
  1. Maximize Conversion Value:
  • Focuses on maximizing the total conversion value within your budget rather than the number of conversions.
  1. CPM (Cost Per Thousand Impressions):
  • A bidding strategy primarily used for display ads, where you pay for every thousand impressions rather than clicks.

Why It Matters:

Choosing the right bidding strategy is crucial for optimizing your ad spend and achieving your advertising goals. Each strategy has its advantages, depending on whether you aim to increase traffic, generate leads, or maximize sales.

Additional Resources:

For more information on bidding and bidding options, consider these resources:

  1. Google Ads Help – About Bidding
  2. WordStream – A Beginner’s Guide to Google Ads Bidding
  3. HubSpot – Understanding Google Ads Bidding Strategies

If you have any further questions or need clarification on bidding strategies, feel free to ask!

Jacob Lett - digital marketing specialist

Written by: Jake Lett
Jake Lett is a B2B marketing consultant with over 15 years of experience in the digital marketing industry. He specializes in SEO, HubSpot, and PPC campaign management. Jake has a proven track record of helping businesses increase their online visibility and drive more traffic, leads and sales. He is a Certified Google Ads Specialist and a Certified HubSpot Developer.

Topic:

PPC Management

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