Bid Strategies are tailored campaigns designed in Google Ad Words to help you accomplish certain goals. Depending on what your target audience is, you can focus on getting higher click rates, impressions, or conversions.
If you want to generate more traffic to your website you should concentrate your efforts on clicks. Therefore, a Cost-per-click (CPC) campaign bid strategy would be most effective.
If you want to increase your brand awareness, then you should focus on impressions. Therefore, a Cost-per-thousand-impressions (CPM) bidding strategy should be used
If you want customers to take a certain action on your website like downloading new software, then you should focus on conversion tracking. The best bidding strategy to increase conversion rates is Cost-per-acquisition (CPA).
If you want to generate more traffic to your website, then there are two CPC strategies that work best
If you want to generate more views, CPM bidding strategy will allow you to control the visibility of your ads by fine tuning your maximum CPM bids. Manual CPM bidding isn’t ideal for customers where the goal is direct response from their customers. Here are some useful scenarios for CPM bidding:
If you are searching for higher conversion rates, then CPA bidding will be your best strategy. It allows you to bid directly for conversions, but your campaign must pass a few requirements to pursue the strategy. First, you must have conversion tracking enabled, second, your campaign must target the search network, display network, or both. Here are some useful scenarios where CPA bidding would be beneficial:
Receiving at least 50 conversions per month. Since AdWords relies on historical data, it is important there is as much data as possible. The more data available, the more accurate AdWords can optimize your return on investment.