Bidding Optimization Strategies

Bidding Optimization …

Advertising on Google relies heavily on bidding optimization; yet, it isn’t necessarily true that the highest bid gets their ad ranked the highest. Equally as important, is the quality of the ad itself. Therefore, if two people bid the same amount and one has higher ad quality, then they will win the placement and rank more highly and at a lower cost than the other user. While, if both users had the same ad quality, the one who paid more will win the auction. Also, you don’t always pay the maximum of your bid for ad placement. Google charges you only as much as is needed to beat the runner up. In addition, if you would like to learn more about the AdWords Auction process, then please watch the video below.

Budgeting …

When you create an advertising campaign, you should always input a daily budget. You may ask yourself what an appropriate budget might be for your business. To answer this, ask yourself how much you can afford. You should assume that Google will consume your total budget every day, from this you can figure out a monthly budget. This monthly budget will indicate how much you can accomplish, but don’t get discouraged if you own a small business! You don’t necessarily need a large budget to achieve large results. Consequently, having a small budget can make it difficult to try different variations of ads. You will need to rely on having a strong quality score for your ads.

In addition, you need to look at the lifetime value of your customers. You need to think about how much money you will be making off of this customer over their lifetime, versus how much it cost you to acquire that customer. This will let you know if your ad was profitable in this instance.

For a more in depth, and professional perspective, check out the link to SearchEngineLand below!

Common Bidding Strategies …

  • Cost-per-Click = This method is used to push traffic towards your webpage in multiple different ways. It is the most common bidding strategy.
  • Cost-per-Impression = This method is used primarily to build brand awareness. Or if you want more users to see your message.
  • Cost-per-Acquisition = This method is used to drive conversion; this could be in the form of a sale, phone call, completed web form, etc.

Flexible Bidding Strategies …

Bidding Optimization

Each of the six automated bidding strategies can be found in the graphic below; if you would like a more in depth look at what each of them do, then please follow the link below.

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