In this article, we will take you through the types of bidding for various goals that you set for your Google advertising.

Small-medium businesses are often constricted to a limited budget that makes it strenuous to accomplish their goals through paid advertising. Nevertheless, when you gain an understanding of how to constructively use Google Ads bidding strategies, you can magnify your return on investment. If done effectively, this can turn a small budget into a big win.

Here are tips to ace bidding so that you can do more with less spending.

Why is bidding important to understand?

Google Ads (Previously known Adwords) bidding can get overwhelming for newcomers. Bidding on keywords is an essential step and many times the pressure of bidding on the keywords can make newbies commit the mistake of spending much more than required for relatively few conversions.

At times, marketers aim to acquire the top ranking in Google’s Search Engine Result Page. Ranking on top shouldn’t be the aim but the focus should primarily be on accomplishing the specific goals of your business.

With an apt bidding strategy, one can build relevant, significant, compelling ads that can help your campaign be cost-effective and let you acquire cheaper clicks and more conversions. Over time, your ad rank will improve.

Types of Bidding

Google understands that the Ads users can be either experts in the field or totally new to this world. Hence, Google gives you options to choose from so that you can make most of Google Ads Platform.

Automatic Bidding   

If you are not well versed with Google Ads, Automatic bidding should be the option to explore. Placing your keywords on automatic CPC provides the entire control to Google, freeing up your resources to work on other aspects of the campaign. Google algorithm regulates when to change your bids while staying within your set daily limits.

Ideally, the strategy is best applicable for large campaigns with high budgets as it saves a lot of time. On the other end, providing Google the entire control can lead to a lot of wasted spend on lose-performing keywords.


Another way to make sure that you don’t empty your pockets soon is to choose Max CPC bidding. This ensures that newbies do not pay huge amounts for clicks. Max CPC bidding is what the maximum you're willing to bid, not what you actually pay. For instance, If you set max CPC to $3, Google would make sure to not cross the set limitation. 

Manual Bidding

Manual Bidding is usually chosen by experts who’ll use their expertise to bid separately on the desired keywords to receive maximum conversions. Using Manual CPC can allow you to reserve full control over your bids. This enables you to set individual keyword bids along with setting bids at the ad group level.

It is recommended to make use of data analytics to steer your decisions with manual bidding. By estimating keyword history and past performance, you can identify keywords that are probable to generate results. This is how one can optimize search keywords by smartly adjusting the maximum CPC.

This is a productive strategy to acquire quality traffic to your website or landing page as it certifies you prolong a satisfactory CTR. Since under Manual CPC you are given the entire control over bidding, you can protect against wasted spend. The only con of using manual CPC is that it gets time-consuming.

What are the most suitable business objectives?

Each strategy varies depending on business objectives. These reflect your business goals and hence fluctuate depending on what your business is based upon.

For instance, you may have goals that target growth in various areas, essentially as:

  • Leads Generation
  • Brand Awareness    
  • Conversions

When you have designated your goals, consider the strategies below to find which is the most suitable strategy for your campaign.

Brand Awareness Bidding Strategy

Brand awareness is described as the degree to which people can recall or recognize a specific brand. If you want to grow brand awareness, the key is to increase the visibility of your company, products, services and cause. As Google provides two choices, Search ads and Display ads, both of their use cases are different as well. Google Display network is mostly used to create awareness for the brand — your ads are shown to your target audience whenever they are surfing online, while Search ads are used to generate leads.

There are a few caveats to the display network for brand awareness.

  • Ensure your campaign is using managed placements: These are websites that you want to advertise on otherwise Google will make decisions to show your ad on websites that may not be contextually relevant.
  • Scope: The Display network consists of a near infinite amount of websites so choose your audience carefully and ensure that they are people who will eventually turn into prospective clients.

Leads Generation Bidding Strategy

Lead ads are relatively new on Google and have only been introduced since 2019. The main purpose behind these ads to build leads to sell to more products. Preferably for this strategy to work the company needs to be out of the awareness stage of the product life cycle otherwise it can be costly without generating qualified leads.

The process of determining potential customers to purchase your products or services is a consistent affair. Without leads, you can’t create sales and it's imperative to have the apt strategy to acquire more leads.
The ideal keyword bidding strategy for lead generation goals is to emphasize on CPC (Cost per click). 
Manual and Automatic bidding can be used to garner leads. The bidding strategy for both will change according to your expertise, objectives and the amount of time you have in your hand. 

Conversions Bidding Strategy 

Conversions are the utmost goal of your campaigns. They are also known as target CPA bidding. Conversions take place when a user engages with your ad and acknowledges the mentioned CTA (Call-to-Action) whether it’s a signup, learn more or a buy now.

If you are emphasizing on conversions, an ideal strategy is using a enhanced  CPC. This strategy functions to maximize the number of conversions you get from your clicks.

Once enhanced CPA is set in, Google takes the driving seat and evaluates the history of the keywords and forecasts the amount of conversions you can receive. It will then automatically adjust the bid with the single goal of creating conversions. Some keywords would cost more than your target as  Google thinks it can receive more conversions if spent a bit extra. For other sets of keywords, Google balances the  amount set and generates conversions on a low bid. This keeps your targeted spend in control.

If you are past the point of brand awareness and are now focused on maximizing your conversions, then enhanced CPC strategy is an ideal one to go ahead with.

With regards to online sales, it will minimize your advertising budget. It may not turn out to be effective in the commencing stage as keyword history is considered by Google.


When you begin with Google Ads, you are prone to waste money on your keyword bids. Before you indulge in the process, be thorough with your business goals. When you establish them, position your campaign objectives so that you have a steering hand when it comes to bidding.

It’s a sane move, to begin with, manual bids to retain more control at first in order to store history and further construct a more meticulous keyword list that consists of suitable search terms and negative keywords.

Post that, you will be able to generate profits with advanced keyword bidding strategies.

Although, there are tons of bidding strategies in Google Ads. However, we covered just some of the most fundamental ones for you to get acquainted with and set your first ever ad campaign.


eLama, SMM manager