Here’s what the Target ROAS bidding strategy looks like when creating a new campaign: $10 in sales from campaign ÷ $2 ad spend (clicks) x 100% = 500% target ROAS To do the math, you follow this formula:ĭoing the math for the example above, here’s what the Target ROAS would look like: On your next Google Ads campaign, you want to generate $10 for every $2 spent. Target ROAS is the bidding strategy where Google Ads will set your bids to maximize conversion value based on the return you want from your ad spend. Unfortunately, math is important on this one. Yes, math, the dreaded, awful subject that most marketers run from. Target Return on Ad Spend is a bidding strategy that throws most for a loop.īecause it requires some math. When selecting this bidding method, you can enter your target CPA, and you’re good to go!īack To Google Ads Bidding Options List Google Ads Bidding, Option #2: Target Return on Ad Spend (ROAS) That would be breaking even when the goal is to profit. Your Cost per Acquisition is simply the amount of money you can afford to spend on acquiring one customer.įor example, if you sell a product for $50, you don’t want to set your target CPA at $50. Target CPA bidding can be complicated if you don’t know what your acquisition costs are. While some conversions may cost more, others may cost less to even out and align with your acquisition costs. With this method, Google Ads will automatically set your bids on each campaign based on your CPA. If driving conversions are your primary goal for the campaign, selecting Target CPA bidding will focus on trying to convert users at a specific acquisition cost. Target CPA bidding is a bidding strategy you can use if you want to optimize conversions. Google Ads Bidding, Option #1: Target Cost Per Acquisition (CPA) We also cover two options recently made obsolete, and what bidding strategy Google Ads made to replace them: CPM Bidding (Cost Per Viewable Thousand Impressions).CPM Bidding (Cost Per Thousand Impressions).Target ROAS (Return On Ad Spend)(Return On Ad Spend).In this section, we’ll break down each one and what its ideal use case is, including the new maximize conversion value option. On Google Ads, there are currently 11 different types of bidding that you can use for a variety of goals. Google Ads Bidding Strategies: Your 11 Options in 2020 Explained You need to be familiar with all of them to make the right choice. There are 11 different bidding strategies available, and they all have their time and place. Most people opt for automated because who the heck wants to adjust bids all the time if you’re running multiple campaigns? Nobody.īut unfortunately, it’s not as simple as just choosing “automated” and starting to cash in your checks from Google Ads sales. When launching a new campaign on Google Ads, Google asks what type of bidding you want to use: In this post, we’ll walk you through all the different types of Google Ads bidding strategies, and how to use them to your advantage. Just changing the bidding strategies can lead to an increase in conversions of up to 142.86%. If you don’t know what you’re doing, you can end up wasting your entire budget on just a few clicks.īut when you make the right moves, you can take your campaign performance to a new level. Choosing the right Google Ads bidding type and implementing a solid strategy for adjusting bids is critical to driving your ad costs down.
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