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Bid strategy

Definition in short: The setting that decides how Google Ads bids in auctions: manually or automatically toward a goal.

What is a bid strategy?

A bid strategy is the setting in Google Ads that determines how you bid in the ad auction. You either decide yourself what a click may cost at most, or let Google bid automatically toward a goal, such as more conversions or a fixed cost per conversion. A campaign uses one bid strategy at a time.

Why is a bid strategy important?

  • Steering toward your goal: Google bids for what you want to achieve, such as leads, revenue or clicks.
  • Influence on your costs: the strategy partly decides what you pay per click or per conversion.
  • Less manual work: automated strategies adjust the bid for every search, which you cannot do by hand.

Examples of bid strategies

  • Manual CPC: you set a maximum CPC for each keyword yourself.
  • Maximize conversions: a local installer wants as many quote requests as possible within a fixed daily budget.
  • Target ROAS: a sporting goods store steers toward a ROAS of 4.

How do you use a bid strategy?

Pick the strategy that fits your goal and your tracking data. If you have recorded few conversions so far, start with manual bidding or Maximize conversions. Once your tracking is solid, you can steer with a target CPA or target ROAS. Give a changed strategy time before you judge it. We fine-tune this in your Google Ads campaigns.