Choosing the Right Target When Switching Bid Strategies in Google Ads

Eric Mellen
September 26, 2024

Switching bid strategies in Google Ads is a powerful way to align your campaigns with evolving business goals. However, an often overlooked aspect is ensuring that your target is correctly aligned with your new bidding approach. Whether you’re optimizing for clicks, conversions, or visibility, choosing the right target is essential to getting the most out of your ad spend and improving overall campaign performance.

At Mellenology, we help businesses like yours make data-driven decisions when adjusting Google Ads strategies. In this article, we’ll dive into how to choose the right target when switching bid strategies, so you can optimize your campaigns and achieve better results.


Why Switching Bid Strategies Matters

Google Ads offers a range of bid strategies, each tailored to specific campaign goals. For example, you may initially focus on driving traffic but later want to prioritize conversions or maximize revenue. Switching bid strategies without aligning the appropriate target can lead to inefficient ad spend and missed opportunities.

Each strategy has its own set of parameters, and setting the correct target ensures that Google optimizes the bidding process according to your goals. Let’s explore the key bid strategies and how to set the right target for each one.


Common Google Ads Bid Strategies and Their Targets

Here are some of the most common Google Ads bid strategies and how they align with specific targets:

  1. Maximize Clicks: This strategy is designed to get as many clicks as possible within your budget. It’s ideal for driving brand awareness or generating traffic to a website.
  2. Maximize Conversions: This strategy focuses on driving the most conversions (such as purchases, sign-ups, or leads) within your set budget. It’s perfect for campaigns with clear lead generation or e-commerce goals.
  3. Target CPA (Cost Per Acquisition): This strategy targets a specific cost per acquisition, helping you keep conversion costs predictable. It works well for advertisers looking to hit certain CPA thresholds.
  4. Target ROAS (Return on Ad Spend): This strategy maximizes the return on ad spend by optimizing bids to achieve a specific ROAS, focusing on generating the most revenue from your budget.
  5. Target Impression Share: This strategy is aimed at improving visibility, ensuring your ad is displayed at the top of the page or at least within the top positions for a specified share of impressions.
  6. Manual CPC: This strategy allows you to manually control bids for each keyword. It’s often used when you want precise control over how much you’re willing to pay per click.

How to Choose the Right Target When Switching Bid Strategies

1. Maximize Conversions: Focus on the Right Conversion Actions

When switching to Maximize Conversions, make sure your conversion tracking is set up properly and aligned with your business goals. Prioritize the most valuable actions—whether it’s purchases, form submissions, or sign-ups.

Tip: If you’re aiming to increase purchases, prioritize those as conversions and exclude lower-value actions like email sign-ups. This ensures your budget is used effectively.


2. Target CPA: Set a Realistic Acquisition Cost

If you’re moving to a Target CPA strategy, determining the right cost per acquisition is key. Look at your historical data and profit margins to set a CPA that balances performance and cost.

Tip: Start with a CPA that reflects your average acquisition cost from previous campaigns, then adjust as needed based on real-time data.


3. Target ROAS: Understand Your Revenue and Margins

For e-commerce or revenue-driven campaigns, Target ROAS ensures you’re maximizing your returns. You’ll need to calculate your profit margins and set a realistic ROAS target that reflects not just revenue but profitability.

Tip: A higher ROAS isn’t always better if your profit margins are slim. Focus on profitability, not just revenue.


4. Maximize Clicks: Set a Value for Each Click

When using Maximize Clicks, it’s crucial to understand the value of a click to your business. While traffic is important, it’s essential to ensure those clicks are qualified and likely to convert.

Tip: Review which keywords are driving valuable traffic and which ones aren’t. This allows you to refine your targeting and exclude irrelevant traffic.


5. Target Impression Share: Prioritize High-Value Keywords

Switching to Target Impression Share is ideal when visibility is the main goal—whether for branded keywords or specific high-value search terms. Ensure your budget is allocated toward keywords that drive business value.

Tip: Use this strategy for product launches, special promotions, or times when visibility is key. Prioritize high-converting keywords for the best return on investment.


6. Manual CPC: Regularly Adjust Bids Based on Performance

If you’re moving to Manual CPC, you’re in full control of how much you’re willing to pay per click. It’s important to adjust bids based on performance data to ensure your campaign is optimized for success.

Tip: Regularly review and adjust bids on high-performing keywords, and lower bids on those that aren’t converting. This strategy requires continuous monitoring to stay effective.


Monitor and Adjust Your Targets Regularly

Switching bid strategies isn’t a set-it-and-forget-it process. Once you’ve made the switch and set your target, monitor performance closely. Google’s algorithm typically takes a few weeks to fully optimize based on the new strategy, but you should be prepared to make adjustments as needed.

Watch for:

  • High spend, low conversion rate: You might need to adjust your CPA or ROAS target.
  • High impressions, low clicks: This could signal a need to adjust bids or target different keywords.
  • Good click-through rate (CTR), low conversions: Reassess your landing page and conversion tracking to ensure they’re aligned with your campaign goals.

Align Your Bid Strategy and Target for Success

Switching bid strategies is a smart way to improve your Google Ads performance, but aligning the right target with your new strategy is crucial. Whether you’re optimizing for clicks, conversions, or revenue, taking the time to set the right target will ensure your ad spend is used efficiently and your campaigns achieve the desired results.

At Mellenology, we specialize in helping businesses optimize their Google Ads strategies. If you need expert guidance on choosing the right bid strategy and target, reach out to us for tailored solutions that drive results.


Share

Recent Posts