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Monday 6 June 2016

Google Adwords Bidding strategy


Most important thing when you are doing ad campaigns is to know clearly about "how to pay?" and "what to pay?"
The different bidding strategies available in Adwords make things more clear, There are 3 different strategies available in Adwords to build up your campaign.

1) Cost per Click (CPC) Or Pay Per Click (PPC)
2) Cost per thousand impressions (CPM)
3) Cost-per-acquisition (CPA)

These strategies make different impact and have different payment modes. The aim of each strategy is different. So when you are doing ad campaigns, selecting the right strategy is very important to achieve your goal.

Major Goals Of an ad campaign

There are a few goals the old campaigner looking for. The advertisers doing campaigns for

1) Website Clicks: Advertiser want people to visit his website.
2) Impressions: Impressions means the display of ads to people. Some advertisers want to people to see his product, Logo, Name etc.
3) Conversions: Conversions means some real benefits or sale happening to the advertiser. Some people do campaigns only targeting sales.
4) Views: This is normally for a video ad. Video advertisers are the ones who demanding the views.

For each of these goals we have to approach different strategies. 

1) Cost per Click (CPC) Or Pay Per Click (PPC)

In CPC, the Advertiser has to pay a particular amount for each click his website receiving. People who are targeting website clicks normally use this strategy. 

2) Cost per thousand impressions (CPM)

In CPM, the Advertiser has to pay a particular amount for a thousand impressions of his ad. Thousand impressions mean thousand times the ad shown in google display networks. The engagement of people in the ad doesn't make any difference in the bid amount. This strategy is adopted for the one who targeting the brand awareness and product awareness. This bidding is only available in the Google Display Network.

3) Cost-per-acquisition (CPA)

In CPA, the Advertiser has to pay an amount only when a specific action taken place on his website. This is an advanced bidding strategy. This is for the advertisers who are focusing more on conversions. For Using CPA, we have to turn on the conversion tracker, so this is a little complex compared to other bidding strategies.

Setting Budgets

We can set up a daily budget in Adwords, calculate a daily budget considering your total budget for Adwords. During bidding time we will get an idea about how much have to pay for the 1 Website click, 1000 impressions or 1 conversion. According to that set up a daily budget. If you want to increase your budget for reaching more people, you can do it whenever you want. Setting budgets and altering budget is completely up to you.


How google applies charges on your ads

Google has a different way of charging for different bidding strategies. When you're setting the ad, Adwords gives you the idea about the price you have to pay. But that is not the exact amount charged from you.

Assume that you are using CPC/CPM bidding, Here the bid amount that we are setting in Adwords is the maximum that we are ready to spend per each click/action. But google will not charge the maximum from you, You only have to pay the amount that requires to appear your ads above your just below placed competitor's ad.

In case of CPA, the scenario is different. Here the amount that you have to pay may be little higher than your actual bid amount. This is because of the changes happens to your website or ad, increase of competition in auctions etc. These factors are not in the control of google, so the small increase in the payment can happen. If you are running a long term CPA ad. Then google Adwords can adjust with the price variations. So the possibility of increase in amount is less.

For the best adwords biding strategies, take the guidance of the best digital marketing company in dubai - Digital Evolutions

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