Get the most out of your paid advertising campaign!
“How?”, you ask? By using different types of bidding options or strategies. So, which bidding strategy will drive results for advertising?
To answer this question, first, we will find whether bidding is a good option for your brand or not? After this, we will explore how to do bidding on the biggest ad platforms on the internet: Google and Facebook.
Why is Bidding a Good Option for Your Brand?
Relying on organic results can be a slow process with such a competitive space out there, while bidding provides a quick way to boost your brand’s market standing.
Here are some other reasons why you should bid on your brand name:
1. Control What Users See When They Search for Your Brand
When you bid on your branded keywords (search terms that include your brand name), you can get the users to see the message you want them to see. You can display unique value propositions and other special features like promotions, new products, and updates in your ad, which cannot be covered in organic listings.
2. Be able to Create Better Content
Bidding on your brand’s keywords, lets you test your brand message or content before you roll out your advertisement campaign.
It allows you to see how users react to a certain ad. You can see whether certain content resonates with your audience or not. This saves time and money.
3. Control your SERP Ranking
Ranking organically on SERP is not always possible, sometimes bidding on Google AdWords is the only option. This is why some of the top results have “Ad” written next to them.
Getting a spot at the topmost of SERP double’s your brand’s visibility and increases the traffic on your website.Not only this, but the traffic you get is purely for your brand and would lead to an increased conversion rate.
This shows us that bidding your brand is an important factor in reaching your branding goals.
Now, let us have a look at some of the most popular bidding options available.
Types of Bidding Strategies Used by Advertisers
Bidding options are platforms dependent. Each platform offers unique advantages over the other. Here we will go through some of the bidding strategies used for Facebook and Google Ads.
Facebook Bidding Strategies
If you’re a small-scale business or a newcomer in the eCommerce industry, bidding on Facebook is your best option. Not only can you easily find your target audience on Facebook, but advertising on Facebook is relatively cheaper as compared to other platforms.
Here are some Facebook bidding strategies to give you a headstart:
1. Lowest Cost (Auto Bid)
The lowest cost or auto bid strategy is the automatic bidding option set by Facebook. By choosing this option, you allow Facebook to place your ads based on your budget and schedule. This strategy is good for people who do not want to get into manual options and are focused on creating brand awareness, getting impressions, traffic, and leads.
2. Bid Cap
The bid cap strategy is a manual bidding option in which you get to set the bidding. By opting for it, you have full control over your cost and spending. This option is for people who have some idea of how bidding on Facebook works and want to gain a competitive edge over other advertisers
3. Cost Cap
The cost cap strategy is a mix of auto bid and bid cap. By going for this option, you allow Facebook to set the bidding, while you decide the maximum cost you are willing to spend. This strategy is for advertisers who want to get the most out of the money they are spending on ads, and whose goal is to get offsite conversions and event responses, alongside traffic and lead generation.
4. Target Cost
The target cost bidding strategy is a semi-auto option. Just like the cost cap, Facebook sets the bidding for you, but instead of setting the maximum cost, you set a target cost that you are willing to spend. This is a good strategy if you want to maintain the cost and not go overboard with the spending. Also, if you are looking for high conversions at a set cost, this is the ideal option.
5. Value Optimization with Minimum Return on Ad Spend (ROAS)
This bidding option is slightly different from the rest, as it allows you to set the lowest acceptable bid on ROAS, giving you more control over the value you deliver with your campaign. So, if you are an advertiser focused on app installations, catalog sales, and conversions, this interesting option is considerable.
6. Highest Value
The highest value strategy is the opposite of the previous option. By choosing this strategy, you set the highest bid on ROAS, while spending your full budget. Again, this option does not require much manual handling, as Facebook takes care of the bidding and ad placement, while you enjoy the highest value results. It is an ideal option if you are concerned about catalog sales, app installations, and obviously maximum conversions.
These were some of the bidding strategies specific to Facebook ads. Now let us explore some bidding options for Google ads.
Google Bidding Strategies
Just like Facebook, Google also has some bidding strategies, also known as PPC ads. Bidding on Google works best for large-scale companies, but SMEs can also bid on it successfully.
Here are some Google Ads strategies and how they work:
1. Manual Cost Per Click (CPC)
As the name suggests, manual CPC means you get to manually set the price that you’re willing to pay for each time a user clicks on your ad. Using this strategy ensures that you have control over the maximum cost you’re spending, while Google makes sure that your budget stays within the set price.
2. Target Cost Per Action
Target CPA is a semi-auto strategy that gives you the option of setting a target cost, while Google sets bids and helps in getting maximum conversions at the given cost. The upside of this bidding option is that you get to pay for the conversions only, instead of clicks.
3. Target ROAS
Target return on ad spend is a smart bidding strategy, in which you set the target ROAS. Based on the set target, Google optimizes your bids at auction time according to the attributes of the user, like device, location, etc. This strategy helps in maximizing conversions within a given budget.
4. Maximize Clicks
The maximize clicks is an automated Google Ads strategy for getting as many clicks as possible on your ads using your budget. With this option, you get to set the maximum amount you’re willing to pay per click. Google then adjusts your bids according to the cost cap and tries to get as many clicks as possible while using your budget.
5. Maximize Conversion
The maximize conversion strategy is similar to maximize clicks, but it focuses on conversions rather than clicks. You set a maximum cost, based on which Google optimizes your ads and makes them appear in front of the audience just at the right time. So if you’re willing to spend your full budget on maximum conversions, using this strategy is the way to go.
Each bidding option is used for different purposes on Facebook and Google. Some advertisers simply want to boost their brand’s awareness, while others might be focused on clicks or conversions. So, test out each strategy for your advertising campaign, and keep a track of the results so you can figure out which bidding option is best suited for your brand’s goals and helps your ad reach optimum performance.
Want to learn more about how ads work? Check out our other blogs!