Question

Discuss briefly Bidding Strategies with practical examples

Answer 1

DISCUSSION ABOUT THE BIDDING STRATEGIES :

Bid Strategies:

• Your Bid Strategy is a goal for your campaign that AdRoll uses to automatically optimize which impressions to prioritize, and how aggressively we bid. For example, a goal could be to maximize the total number of Conversions, Clicks, or Impressions. Or, you can set a specific target cost-per-acquisition (CPA), cost-per-click (CPC), or cost-per-1,000-impressions (CPM).

Maximizing conversions :

• If you've defined a conversion audience, your Bid Strategy defaults to maximize Conversions when you're creating a new campaign. If you haven't yet defined a conversion audience, your Bid Strategy defaults to maximize Clicks.

Set a target CPA, CPC, or CPM (optional) :

• If you leave the Target field blank or set to Automatic, we'll automatically bid to achieve the most of whichever goal you choose: Conversions, Clicks, or Impressions.
• If you specify a target, we'll optimize your bids while treating the Target as an upper price-per-result not to exceed. However, it's possible that some Conversions, Clicks, or Impressions may exceed this target.

Note:

• Restrictive CPA, CPC, or CPM targets can limit ad delivery. We recommend that you gradually reduce your target no more than 20% per edit. For example, if your campaign is currently achieving a $10 CPA and your goal is a $5 CPA, we recommend setting a $8 CPA target (80% of $10) and scaling down from there gradually rather than jumping directly to $5.

Target CPA details :

• Your campaign must have achieved at least 7 conversions over the last 14 days in order to run your target CPA Bid Strategy. You can enter a target CPA if your campaign is new or hasn't achieved that threshold of conversions, but your campaign will bid according to the Automatic mode until it meets these requirements.

Below are the four Smart Bidding strategies you can use.

• Target CPA (cost-per-acquisition): If you want to optimize for conversions, you can use Target CPA to help increase conversions while targeting a specific cost-per-acquisition (CPA).
• Target ROAS (return-on-ad-spend): If you want to optimize for conversion value, you can use Target ROAS to help increase conversion value while targeting a specific return-on-ad-spend (ROAS)..
• Maximize Conversions: If you want to optimize for conversions, but just want to spend your entire budget instead of targeting a specific CPA, you can use Maximize Conversions.
• Enhanced cost-per-click (ECPC): If you want to automatically adjust your manual bids to try to maximize conversions, you can use ECPC. It’s an optional feature you can use with Manual CPC bidding.

There are 6 clever ways to use Flexible Bid Strategies:

1. Enhanced cost-per-click (eCPC)
2. Maximize clicks
3. Target cost-per-acquisition (CPA)
4. Target outranking share
5. Target return on ads spend (ROAS)
6. Target search page location

THE DETAILED EXPLANATION ABOUT ONE BY ONE AS SHOWN IN BELOW :

(1).Enhanced cost-per-click (eCPC) :

• With this, you can bid more effectively to maximize your conversions. With ECPC enabled and after manually setting your max CPC bid, Google AdWords will automatically raise this bid up to 30% or lowers it as much 100% depending on how likely that click is to lead to a conversion.

(2) Maximize clicks :

• You choose a target spend amount and AdWords will automatically set bids to help you get the most amount of clicks. If you don’t set a target amount, AdWords will attempt to use the remaining daily budget when using this strategy.
• For example: If you are using this strategy and your daily budget is somewhere in the ballpark of $200, AdWords will first spend whatever amount is required by your manually managed keywords. Then AdWords will get as many clicks as possible while spending your remaining daily budget.

3) Target cost-per-acquisition (CPA)

• Once you set a target CPA number, AdWords automatically sets bids to achieve this goal. In some cases these conversions will cost more than your target CPA and some will cost less but in the end, AdWords will try its best to keep within your average cost per acquisition to the average you’ve set.
• Keep in mind in order to activate this strategy, your ad group or campaign needs to have received at least 15 conversions in the last 30 days and either has received conversions at a similar rate for at least a few days.

4) Target outranking share :

• Keyword bids will automatically be raised or lowered to help your ads outrank another competitor’s ad. When your ad outranks another ad, it is displayed above another’s domain ad on the Google search results pages or shows when the other ad doesn’t. Please note that this strategy does not necessarily improve you overall rank, but it will however help you improve your rank in comparison to another competitor’s ad.
• Keep in mind this strategy does not change bids in every ad auction. Also, your ads are not guaranteed a better placement than that of your competitors. These are just estimates.

5) Target return on ads spend (ROAS):

• When and if you assign a value when you setup your conversion tracking, AdWords predicts future conversions and associated values. Then, AdWords sets a maximum cost-per-click bid with each target keyword to maximize your conversion value, while attempting to achieve an average return on ad spend equal to your target.
• Keep in mind this strategy will create its own bid adjustments in order to reach your target return on ad spend or ROAS. What it won’t affect is if you set a mobile bid adjustment of -100%.

6) Target search page location:

• Bids will automatically be adjusted to show your ad on the top of the page or the first page of Google search results.
• This strategy does not guarantee top of the page or first page placement. These are just estimates. Ultimately this is determined by the outcome of the ad auction, which in turn is heavily influenced by advertiser competition and your quality score.