It’s likely that many are aware of Google’s Flexible Bid Strategies, a topic that even garnered attention through Larry’s blog post featuring the Top 10 Google Ads Features of 2013. Introduced in May of the previous year, these strategies were designed by Google to simplify bidding processes for advertisers and minimize the effort spent on determining optimal strategies. However, a majority of users are facing challenges in grasping the benefits, understanding their applications, and effectively measuring their success.

This article aims to provide clarity by elucidating the concept of flexible bid strategies, outlining the different types available, and guiding you on their effective implementation.

What are Flexible Bid Strategies?

Flexible bid strategies function by automatically adjusting bids to optimize for specific goals across designated campaigns, ad groups, and keywords. Upon creation, a strategy becomes accessible within your Shared Library in Google Ads (previously known as Google AdWords), centralizing its management and simplifying performance monitoring. Applying the strategy at the campaign, ad group, or keyword level is made convenient through their respective tabs.

Success measurement is contingent upon the specific flexible bid strategy employed. However, the fundamental question remains: are you achieving the desired outcomes? Are conversions increasing within your target CPA? Are your CPCs aligned with your objectives and budget? Data analysis will reveal the effectiveness of your approach. Given that these strategies can be applied at various levels with distinct goals, a comprehensive examination of the data is crucial to ensure alignment between the numbers and your objectives. Additionally, assessing the quality of leads and sales generated, comparing them to pre-strategy implementation, will aid in defining success. The provided chart offers a concise overview of the different flexible bid strategies and their recommended use cases. Let’s delve deeper into the mechanics of each strategy, their appropriate applications, and the aspects you retain control over.

Maximize Clicks

Many might already be acquainted with the Maximize Clicks strategy, which essentially mirrors automatic bidding. Its core function is to enhance click volume while adhering to a predetermined spending limit. This target spend essentially represents the budget allocated for any campaign, ad group, or keyword utilizing this strategy, distinct from the daily budget set at the campaign level for campaigns employing manual bidding or alternative strategies. Unlike automatic bidding, which operates solely at the campaign level, this strategy offers flexibility by allowing application to specific ad groups or keywords. However, campaign-level setup remains an option. While ad scheduling control is retained, the ability to set bid adjustments based on day or time of day is relinquished. Note that the target spend is independent of your campaign’s daily budgets and applies solely to those campaigns and ad groups leveraging this specific bidding strategy. With Maximize Clicks, you empower Google to modify your bids to maximize click acquisition within the designated areas. Setting a CPC bid limit prevents Google from exceeding your desired cost per click. This strategy allows for custom ad scheduling based on day and time, though it excludes bid adjustments. You can establish bid caps for any keyword, ad group, or campaign utilizing this strategy. However, in the absence of such limits, Google Ads will dynamically adjust bids to generate the highest click volume. Consider implementing this strategy when your objective is to drive maximum traffic to your website within a specific budget. Conversely, it’s advisable to avoid this strategy when stringent ROI or CPA targets are in place.

Target Search Page Location

If your goal is to leverage Google’s bid adjustments to secure prominent placement on the first page of search results, potentially even at the very top, the Target Search Page Location option is your go-to solution. This strategy dynamically raises or lowers your bids to position your ad advantageously within the Google Search Network, exclusively. Following implementation, expect Google to commence bid adjustments within minutes, with updates occurring multiple times daily. For the initial bid amount, you have two options: an automated approach where Google determines and adjusts the bid or a manual approach where you set the initial bid, leaving subsequent adjustments to Google. Importantly, this strategy doesn’t offer an absolute guarantee of top-of-page or first-page placement. While it strives to achieve your desired location, the final ad position is determined through the ad auction process. This strategy presents two placement options: the top of the first search results page or anywhere within the first page. Opting for the former prompts Google to align your bid with the top-of-page bid estimate. Choosing the latter triggers adjustments based on the first-page bid adjustment. To gain insights into Google’s bid adjustments, consult your first-page and top-of-page bid estimates within AdWords. When utilizing Target Search Page Location, you can implement bid adjustments based on factors like mobile devices, location, day, and time. You can also modify your top-of-page or first-page bids, essentially bidding a percentage of these estimates. Additionally, you have the ability to set a maximum CPC bid limit to control your spending. Setting these limits is crucial to prevent exceeding your desired cost per click, aligning with your cost or CPA objectives. It also safeguards against budget depletion due to escalating bid adjustments.

Target CPA

Target CPA might ring a bell due to its similarity to the “optimize for conversions” feature. This strategy empowers you to set bids aimed at achieving a specific average CPA across all ad groups and campaigns employing it. It’s important to note that while some conversions might exceed the target CPA and others might fall below, Google Ads strives to maintain an overall cost per conversion that aligns with your target. Keep in mind that this strategy prioritizes bid adjustments to meet your target CPA, overriding any other bid adjustments you’ve set, with the exception of a mobile bid adjustment set to -100%. While Google might advise against setting minimum or maximum CPC bid limits, doing so can be advantageous. By setting a bid limit, you gain greater control over your CPC bids, ensuring they remain within reasonable bounds. While Google does operate within your target CPA, a bid limit adds an extra layer of control, preventing exorbitant CPC bids and maximizing budget utilization. Setting a minimum bid limit, on the other hand, guards against excessively low bids that could hinder competitiveness. Bid limits enhance control and impose constraints on Google Ads’ bid automation. Implementing this strategy necessitates meeting two prerequisites:

• A minimum of 15 conversions within the preceding 30 days, as a larger data pool enhances Google’s bid adjustment accuracy.
• A consistent conversion rate within your ad group or campaign for a minimum of a few days.

Enhanced CPC

Enhanced CPC (ECPC) is designed to optimize your bidding for maximum conversions. While you retain the ability to define maximum CPC bids for individual keywords, AdWords steps in to adjust these bids based on its assessment of the click’s conversion likelihood. ECPC will raise your bid by a maximum of 30% and lower it by up to 100%, leveraging real-time data such as device, browser, location, and time of day during each ad auction.

Target Return on Ad Spend

Target Return on Ad Spend (ROAS) utilizes the conversion value you establish during conversion tracking setup. If not already configured, you can do so within the Tools tab under Conversions.

Once set up, Google Ads dynamically sets the maximum CPC bid to optimize your conversion value while aiming to achieve an average ROAS that matches your target.

This encapsulates the Google Ads flexible bid strategies currently offered by Google. If you’re a nexus-security client and believe one of these strategies aligns with your needs, don’t hesitate to reach out to your CS representative. We’re eager to provide detailed insights and assist you in implementing these strategies effectively. Conversations with clients utilizing various flexible bidding strategies have highlighted the need for caution and a thorough understanding of their implications. Several clients experienced increased Google Ads spending without a corresponding rise in conversion quantity or quality. While flexible bidding strategies differ from bidding rules in their approach, they share a common thread: Google assumes greater control over your PPC bid management, sometimes even complete control. This underscores the importance of proceeding with prudence. Are you currently leveraging flexible bid strategies within your Google Ads campaigns? Share your experiences in the comments below! Top image via Barry Silver