AI-Powered PPC To Guide Maximizing Performance

AI-Powered PPC To Guide Maximizing Performance

PPC bidding refers to the process of determining which advertiser gets to display their ads in search results or on websites. Instead of paying a flat rate, advertisers set bids for specific keywords or phrases, which determine how much they are willing to pay each time a user clicks on their ad. Platforms such as Google Ads use these bids for selecting which ads to appear on a results page.

Types of PPC bidding strategies:

1. Manual bidding

2. Automatic bidding

3. Enhanced CPC (ECPC)

4. Target cost per acquisition (CPA)

5. Target return on ad spend (ROAS)

6. Maximize clicks

7. Maximize conversions

Conversion-based Bid Strategies

Google Ads offering Smart Bidding strategies that aim at increasing conversions include target cost per action (CPA), target return on Ad spend, maximize conversions, maximize conversion value, and enhanced cost per click (eCPC).

Click-Based Bid Strategies

Maximizing clicks is the only automated bid strategy currently available. Manual CPC bidding.

Visibility-based bid strategies

Element of brand awareness.

If your campaign goals are emphasizing awareness, then consider some automated PPC bidding strategies like target impression share, CPM, tCPM, and vCPM. Examining the main AI-powered PPC bidding strategy more granularly for getting a better understanding of each one, as well as when it makes sense to choose that particular bid strategy.

Target Cost Per Action (CPA) Bidding

Targeting CPA enable you to set the amount you are willing to pay for a conversion. Google Ads are using machine learning to get as many conversions as possible at or below your set CPA. This is followed by targeting CPA to set bids based on the likelihood of conversion from that particular user.

Multiple use cases for choosing Target CPA bidding include historical conversion data, better budget control, and setting up accurate conversion tracking.

For instance, if you are running an online boutique clothing website, acquiring a new customer at $50 would still be profitable. For your campaign, choose the target CPA bid strategy and set a limit of $50.

Limitations to target CPA bidding to be aware of:

Limited budget could reduce visibility.

Misalignment between the daily budget and the Target CPA can reduce results.

Target Return on Ad Spend (ROAS) Bidding

Target ROAS bidding strategy analyzes and uses Google’s AI for predicting the value of a potential conversion every time a user searches for products or services you are advertising, using Google Ads Smart Bidding. Target ROAS is the most sophisticated of Google’s smart bidding strategies.

Google considers millions of contextual and audience signals to determine each user’s likelihood of conversion and the potential value of their conversions, all in pursuit of hitting your target ROAS.

Some of the crucial tips for using target ROAS include conversion volume, value tracking, setting realistic targets, budget management, growth vs. efficiency, bid adjustments, leaving bid limits, and Ad group vs. portfolio targets.

Target ROAS, achieving a specific return on ad spend, enables you to set the desired ROAS and Google Ads optimization bids to maximize conversion value while hitting your target. Similarly, Google then takes your ROAS inputs for setting bids based on the likelihood of a conversion from that particular user.

Following are some excellent campaign use cases for Target ROAS bidding:

Your goals are revenue-driven, and the target ROAS is great for e-commerce businesses.

If you have high-value transactions or a high volume of conversions, then this PPC bidding strategy can be effective.

Proper conversion tracking is set up, similar to target CPA bidding, requiring accurate conversion tracking.

Maximize Conversions Bidding

Automatically maximizing conversions sets bids for getting the most conversions within your budget. The strategy aims at spending the entire campaign budget without having any ROAS or CPA limitations.

Maximizing conversions can be an ideal bid strategy if you have more budget flexibility, you’re looking for quick wins, and a broader audience targeting. For instance, your company launched a new fitness app and demands to acquire users quickly.

Maximize conversions is chosen to drive as many downloads and signups as possible by having a flexible budget, and Google would automatically adjust those bids to find users most likely to convert.

Maximize Conversion Value Bidding

Similar to maximizing conversions, the Maximize Conversion Value strategy sets bids to help you get the most conversion value within your budget.

Maximizing conversions can be an ideal bid strategy if conversion value is prioritized over volume, campaigns are revenue-focused, and your products have multiple price points.

With each bidding strategy, there are some limitations to using the Maximize Conversions (and Value) strategies: performance is dependent on campaign budget, less control over specific types of conversions, and inefficiencies in performance metrics.

Maximize Clicks Bidding

Maximize clicks bids strategy means getting as many clicks as possible within your budget, and you can add “ceiling” bid limits for Google to not go over within the auction process. Furthermore, maximizing clicks is ideal for your campaigns if you’re looking to increase website traffic, running TOF or MOF campaigns, and setting up new campaigns with no history.

Target Impression Share Bidding

PPC bidding strategy emphasizing visibility of your campaigns, whereas the others focus on conversion or click-based outcomes. Target impression share automatically sets bids, enabling your ads achieve a specific impression share on the search results page.

Choosing your goal to show your ads at the absolute top of the page, on the top of the page, and anywhere on the page of the search results. Using the target impression share strategy helps in boosting your campaigns if brand awareness is top of mind, you’re in a highly competitive market, and you’re running top-of-funnel keywords.

Manual Bidding

Manual CPC bidding gives you control to set the maximum amount that you could pay for each click on your ads. Setting a maximum cost-per-click (CPC) bid for your entire ad group (called your default bid), but you can also set separate bids for individual keywords or placements. For instance, if you have found that certain keywords are more profitable, then you can use manual bidding to allocate more of your advertising budget to those keywords.

Manual CPC bid strategy method lets you set your own maximum cost-per-click for each keyword in your Google Ads campaigns, giving you complete control over how much you are willing to pay for clicks. Benefits of manual CPC bidding include complete control over your ad spend, strategic budget allocation, transparency & learning opportunity, and immediate implementation of strategy changes.

Strategies For Your Specific Goals

A breakdown of Google Ads’ AI-powered bid strategies and when to use them. The key to PPC success is not just picking the strategy but choosing the right one for your specific goals and campaign needs.

Google’s machine learning outputs are usually the direct result of the inputs from the advertisers. And they can be changed over time. By understanding these strategies, you can make smarter decisions and get the most out of your PPC budget