Module 6
Google Ads
Profit-First Bidding Strategies
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Key Pillar #2
Managing Costs
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Introduction to
Managing Costs
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Managing Costs
● Bid Amount (Bidding Strategies & CPC)
○ This is how much you're willing to pay for each
click on your ad. Your bid strategy should align with
your campaign goals, whether it's maximizing
clicks, impressions, or conversions.
● Competition & Inventory Available
○ The level of competition for your chosen keywords
affects the cost-per-click CPC. More competitive
keywords will typically have higher CPCs.
○ The availability of ad placements for your chosen
keywords can influence the cost and visibility of
your ads.
● Conversion Rate
○ When you improve your conversion rate, you get
more sales or leads from the same amount of
money spent on ads. This means better results
without increasing costs.
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Let’s dive into managing costs with
bidding strategies
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Managing Costs with
Bidding Strategies
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Maximize Maximize Conversion Value Maximize Clicks
Google Ads Bidding Conversions
This strategy adjusts bids to This automated bidding
Strategies This strategy sets bids
to get the highest
achieve the highest total
conversion value within your
strategy sets bids to get
the most clicks possible
within your budget.
number of conversions budget.
within your budget.
Target CPA Target ROAS Manual CPC
This strategy sets bids to This strategy adjusts bids to This strategy lets you set your
help get as many maximize the value of own maximum cost-per-click
conversions while aiming for CPC) for your ads, giving you
conversions as possible
full control over your bids.
at or below a specified a specific return on ad
does not use smart bidding or
cost per acquisition spend ROAS. automated bidding signals.
CPA.
Enhanced CPC
Portfolio Bid Strategy Target Impression Share
This strategy automatically adjusts
This strategy groups together This strategy sets bids to
multiple campaigns, ad your manual bids to help maximize
achieve a desired
groups, and keywords to conversions, increasing or
percentage of impressions
optimize performance across decreasing the bid based on the
on the top of the page or
the entire portfolio using a likelihood of a conversion. Uses
chosen bidding strategy. You anywhere on the Google
automated bidding signals. No cap
can also use it for a single search results.
on how much it can increase the
campaign with a min and
bid, but it aims to stay within your
max. cpc cap for automated
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bid strategies. average daily budget.
The Case for
Smart Bidding
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The Case for Smart
Bidding
Set unique bids for each individual auctions
Operating System Modern, Smart Campaigns use a combination of
Search Queries thousands of signals to set the best bid, placement,
Browsing History and creative combination.
Location
Smart Bidding uses data points called signals. All
Time of Day
Device Used signals are measured and optimized per auction and
Day query, including thousands of signals exclusive to
Smart Bidding.
Interests
Videos Watched Our agency is pro smart bidding (we even wrote a
Browser book about it) and leveraging automation as much as
possible.
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The Case for
Manual Bidding
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The Case for Manual
Bidding But there are some cases where we would use manual bidding:
● Catch-all campaigns
○ Bid much lower than average CPC.
○ Get fewer clicks but pay much less per click.
○ Lower conversion rates, but cost-effective.
○ Pick up extra, cheaper traffic and conversions.
○ Supplement main campaigns, not replace them.
○ Work because Google sometimes misjudges conversion rates,
allowing some low-cost clicks to still convert.
● New campaign launch with no conversion tracking data
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Nice. We’ve covered bidding strategies.
Let’s talk competition.
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