How Google Ads Bidding Strategies Work

Bidding strategies determine how your Google Ads campaigns compete in auctions. The two main approaches are manual bidding and automated bidding, each with distinct advantages depending on your campaign goals and data availability.

1. Manual Bidding (Manual CPC)

How It Works

• You set individual maximum bids for keywords or ad groups
• You control the exact cost-per-click (CPC) for each keyword
• Requires ongoing monitoring and adjustment

When to Use Manual Bidding

1. For new Google Ads accounts with no conversion history
2. When testing new campaigns or markets
3. For accounts with very specific bid requirements
4. When maximum budget control is required

Limitations of Manual Bidding

1. Time-intensive to manage at scale
2. May miss real-time optimisation opportunities
3. Requires expertise to maximise performance

2. Automated Bidding Strategies

How It Works

• Google’s algorithms adjust bids automatically
• Uses machine learning to optimise for your goals
• Considers real-time signals and user behaviour

Types of Automated Bidding

1. Maximise Conversions – Gets most conversions within budget
2. Target CPA – Maintains specific cost per conversion
3. Maximise Conversion Value – Optimises for revenue
4. Target ROAS – Aims for target return on ad spend
5. Maximise Clicks – Drives maximum traffic within budget

When to Use Automated Bidding

1. After collecting at least 30 conversions in past 30 days
2. For scaling successful campaigns
3. When you want to leverage Google’s machine learning
4. For accounts with consistent conversion patterns

Limitations of Automated Bidding

1. Requires sufficient conversion data to work effectively
2. Less direct control over individual bids
3. May take time for algorithms to optimise

Choosing the Right Bidding Strategy

1. New accounts should begin with manual CPC to establish baseline performance
2. Established accounts with conversion data should test automated strategies
3. E-commerce businesses often benefit from Target ROAS
4. Lead generation campaigns typically use Target CPA

Key Recommendations

1. Start with manual bidding when launching new campaigns
2. Transition to automated bidding after collecting sufficient data
3. Monitor performance weekly regardless of strategy
4. Adjust targets based on seasonal trends and business goals

For professional assistance with your Google Ads strategy, contact our team for a free campaign audit.