Adword Bidding Strategies from Google

Safalta Expert Published by: Manisha Raj Srivastava Updated Tue, 08 Aug 2023 05:56 PM IST

Free Demo Classes

Register here for Free Demo Classes

Please fill the name
Please enter only 10 digit mobile number
Please select course
Please fill the email
Something went wrong!
Download App & Start Learning
When we have a problem or want to learn more about a product, we all turn to Google. I don't know about you, but I usually only go through the first few results, and sometimes I don't even look past the first two since it's critical to appear in Google's top search results. While there are numerous things you can do in the hopes of getting Google to rank your website as the top organic result, this can take time and is difficult to control, but organizations willing to pay to be seen can appear first.

These ads will display first based on how well your ad copy and message align with the keyword that you are going after, as well as how much you decide to bid to rank for that keyword. Global digital ad spending is expected to reach $332 billion by 2020. By 2024, the global spend on social media advertising is expected to be approximately $300 billion.


Search engine optimization (SEO)
is still an important component of digital marketing, with organic search accounting for more than half of all website traffic. With an average ROI of $42 for every dollar invested, email marketing continues to produce high returns. Around 4.72 billion people were active Internet users, accounting for around 60% of the world's population.
Grow your career in digital marketing: 
Click here and Enrol Now

Table of Content
What is Bidding
What is Google Ads
How Google Ads Work
Types of Google Ads


What is Bidding?

A bid in Google Ads represents the amount of money you are ready to spend for a single click on a specific term. These bids will determine where your advertising appears in search results.
"The best way to think about bidding and paid to advertise in general is as an auction." When you conduct a search on Google, the results are run through their algorithm and ranked based on how much others are willing to pay for that phrase as well as your quality score for that term. All of your keyword bids and advertising are contained within an ad group, which is contained within a campaign. A campaign may include many ad groups, each with its own set of keywords. Ad campaigns are also where you may alter your daily budget and how much money you're willing to spend on that keyword in total for that day.

What are Google Ads?

Google Ads is Google's paid online advertising network. Previously known as Google Adwords, the search engine business renamed the service Google Ads in 2018. The basic mechanism stays the same: when users search for keywords, the results of their query are shown on a search engine results page (SERP). Among the results could be a paid advertisement targeting that keyword. However, purchasing Google advertising does not guarantee the top rank; after all, you'll most likely have a number of other marketers fighting for the same term through Google Ads.
Personalized experiences can lead to a 20% increase in sales.

Read More: Know more about Adword bidding

How Google Ads Work?

Google Ads uses a pay-per-click model, which means that marketers target a specific keyword on Google and place bids on it, competing with others who are also targeting the keyword.
Your bids are the maximum bids or the most you're willing to spend for an ad. For example, if your maximum bid is $4 and Google calculates your cost per click to be $2, you will be assigned that ad location. You will not receive the ad placement if it is determined to be more than $4. You may also select a maximum daily budget for your ad. You'll never spend more than a certain amount per day on that ad, giving you a better idea of how much you should invest in your digital marketing. 

Marketers have three options for their bids:

  1. Cost-per-impression (CPM): How much you pay when a user clicks on your ad

  2. Cost-per-click (CPC): How much do you pay per 1000 ad impressions?

  3. Cost-per-engagement (CPE): How much you pay when a user performs a specific action on your ad (sign up for a list, watch a video, etc.).
    The idea is that the more users click on a marketer’s advertisement, the more likely they are to accomplish the advertisement’s goals.

    Read More: More knowledge on Google Ads

    Types of Google Ads:

    Google offers a variety of different campaign types that you can use:
    1. Search Campaign
    2. Display Campaign
    3. Shopping Campaign
    4. Video Campaign
    5. App Campaign

    Search Campaign:
    Search Campaign advertising appears as text ads on the keyword results page. Here is the search campaign advertising for the keyword 'laptop', for example. These are the ads you're probably most familiar with; they're marked with a black ad sign next to the URL on the search results page. As you can see, text-based ads aren't the only kind of ads available in the search network. You can also have your adverts displayed in Google Shopping, which leads us to the next point.

    Display Campaign:
    The Display Network uses Google's large website partners to present your ad on various websites all across the internet in a number of different ways. First, your advertisement may display on third-party websites, so you can also have a video ad appear as a pre-roll before YouTube videos.

    Shopping Campaign:
    A shopping campaign allows you to visually promote your merchandise. This advertising, like Google Shopping, can appear as images on the search results page. If you sell a physical product, Google Shopping advertisements can help you acquire quality leads by displaying your goods to customers directly.

    Video Campaign:
    These are advertisements that show in the form of pre-rolls at the beginning of YouTube videos. We only cover them with the display network, however, Google provides the option of expressly picking video ads rather than more generally advertising on the display network.

    App Campaign:
    App advertisements, like video ads, are part of the display network but can be used for targeted campaigns. You don't have to design each app ad for this; instead, they'll take your language and assets, such as photographs, and create the ad for you. The algorithm analyzes several asset combinations and employs the one that performs the best the most frequently.

    Read More: Download free digital marketing e-book

Given its reach and authority, Google Ads should be a component of any sponsored approach. Start with the recommendations we provided and remember to modify and iterate as you go. There is no such thing as a failed Google Ads campaign; only those that require a little more effort to implement using the strategy and information supplied above. What you need to create a successful Google Ads campaign that drives clicks and converts leads.

What is Google AdWords bidding

When you set your bid, you're telling Google Ads the maximum amount you are willing to pay for a click on your ad.

What is a minimum bid in AdWords

A minimum cost-per-click (CPC) bid is assigned to each keyword in your account based on its quality or quality score. The minimum bid is usually the lowest amount you can pay per click in order for your keyword to show ads.

What is the process of bidding

 The bidding process is a method to select the most suitable service provider by comparing proposals against specific criteria.

What are the different types of bidding

There are two types of bidding:
1. Open or competitive bidding
2.  Closed or noncompetitive bidding

What is the bid price size

The bid size represents the quantity of a security that investors are willing to purchase at a specific bid price.

Free Demo Classes

Register here for Free Demo Classes

Trending Courses

Professional Certification Programme in Digital Marketing (Batch-7)
Professional Certification Programme in Digital Marketing (Batch-7)

Now at just ₹ 49999 ₹ 9999950% off

Master Certification in Digital Marketing  Programme (Batch-13)
Master Certification in Digital Marketing Programme (Batch-13)

Now at just ₹ 64999 ₹ 12500048% off

Advanced Certification in Digital Marketing Online Programme (Batch-24)
Advanced Certification in Digital Marketing Online Programme (Batch-24)

Now at just ₹ 20999 ₹ 3599942% off

Advance Graphic Designing Course (Batch-10) : 100 Hours of Learning
Advance Graphic Designing Course (Batch-10) : 100 Hours of Learning

Now at just ₹ 15999 ₹ 3599956% off

Flipkart Hot Selling Course in 2024
Flipkart Hot Selling Course in 2024

Now at just ₹ 10000 ₹ 3000067% off

Advanced Certification in Digital Marketing Classroom Programme (Batch-3)
Advanced Certification in Digital Marketing Classroom Programme (Batch-3)

Now at just ₹ 29999 ₹ 9999970% off

Basic Digital Marketing Course (Batch-24): 50 Hours Live+ Recorded Classes!
Basic Digital Marketing Course (Batch-24): 50 Hours Live+ Recorded Classes!

Now at just ₹ 1499 ₹ 999985% off

WhatsApp Business Marketing Course
WhatsApp Business Marketing Course

Now at just ₹ 599 ₹ 159963% off

Advance Excel Course
Advance Excel Course

Now at just ₹ 2499 ₹ 800069% off

Latest Web Stories