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Bidding Strategies

What You Need to Know About PPC Bidding Strategies

Are you currently running a pay-per-click marketing campaign? How satisfied are you with the results? Perhaps they could be better. When it comes to applying techniques that will attract more users to your website, it helps to choose the right bidding strategy.

A suitable bidding strategy not only helps you save money, but guarantees a more accurate placement for your online business ads. If you are still unsure of how to choose the right one, or simply wish to learn more- this article answers some frequently asked questions.

What is a bidding strategy?

A pay-per-click campaign allows businesses serve online ads for potential customers to click and visit their website. Google uses a bidding system, not much different from an auction, that decides which ads are presented in a search query.

In a typical PPC campaign, AdWords for example, text ads are presented according to the relevance of the keyword, quality of the ad/website and the chosen bidding strategy. There are other important factors involved, but for the purpose of this topic, we shall limit it to these three.

A bidding strategy represents how online adverts are served in relation to the goal of the campaign and the payment method decided by the advertiser. For example, if you want to promote your new fashion line online, there is a special bidding strategy for creating impressions on targeted Google networks.

What are the various types of bidding strategy?

Every online marketing campaign has a goal. To achieve each goal, specific bidding strategies have been put in place. Bidding strategies may stem from whether you want to pay for impressions, or engagement rates or focus more on conversions at your website. Either way, your ad will serve its purpose. The following are common bidding strategies:

  • Conversion strategy

As the name suggests, this strategy is used to drive conversions at your website. Each time a person completes a sale, or registers a subscription and so on, you pay for the activity. This includes Cost-per-acquisition and enhanced cost-per-click strategies.

  • Revenue/conversion strategy

Pay-per-click bidding strategies usually drive bottom-line revenue. Fortunately, modern bidding platforms have become accurate enough to measure and predict revenues and profit driven by your campaign.

  • Visibility strategy

Search engine marketing can be adapted to almost any principal strategy. It is not always about the conversion; in this case bidding strategies are selected to drive visibility of campaigns.

  • Outranking share strategy

Online ads are often served according to the highest bidder. In an attempt to outperform the competition, advertisers use outranking share strategy to keep their bids high enough.

  • Click-based strategy

This is probably the most common strategy. It helps maximise the volume of clicks within your available budget. Advertisers will have to monitor their campaigns closely to ensure they are profitable.

How do you choose the right bidding strategy?

Every online marketing campaign has a goal. To achieve each goal, specific bidding strategies have been put in place. Bidding strategies may stem from whether you want to pay for impressions, or engagement rates or focus more on conversions at your website. Either way, your ad will serve its purpose. The following are common bidding strategies:

Search engine marketing can be likened to a battlefield. You don’t venture into it without a sufficient plan, otherwise you will not only lose money, but fail to achieve the purpose of your campaign.

People are often overwhelmed by the size of their campaigns and the numerous bidding strategies available. So how do you choose the right bidding strategy? The first thing to consider is the goal of your campaign. Once you understand what it is supposed to achieve, you can assign an appropriate bidding strategy.

For example, a new company that makes red party cups trying to establish its presence in Southampton will want to create awareness of its business online. It will therefore benefit from a visibility bidding strategy. This means the campaign will be targeted at presenting its display ads on various display networks. The company will pay according to the number of impressions the ads acquire.

In another example, an advertiser may decide to focus its campaign on generating conversions. Say, an already popular shoe sales company with the objective of selling its old stock can use the conversion strategy to maximise conversion rates. The bidding costs accrued will be based on clicks that resulted in conversions.

Are such bidding strategies not too expensive?

The plus side of pay-per-click marketing campaigns is the ability to control your expenditure. Unlike traditional ad spend where a majority of the expenses are lost to immeasurable tactics, PPC marketing allows you monitor your campaigns from start to finish. This improves the accountability and accuracy of ad placements.

Being able to take control of your online campaign in real time increases its chances of success. For instance, you can see what strategies are working and enhance them, or what methods are not and stop them. In addition, you can put a limit on the maximum bid amount per day to prevent your campaign from overshooting its budget. Some bidding strategies may cost as low as £0.20 per click.

Can I change my bidding strategy in mid-campaign?

Sure. Campaign objectives tend to change overtime. You may start a campaign with the goal of awareness and decide to focus on conversions later. If you began with the visibility bidding strategy, you can switch to the clicks or conversion strategy after a few months. You may also choose to maintain the maximum bid amount or increase it.

Businesses located near Portsmouth, in Hampshire or along Southampton water, can contact Egnut for help in choosing the right bidding strategy.

Egnut, your reliable PPC marketing and bid strategy expert

Egnut is a Southampton based marketing communications company. Our processes are developed from data-driven, intelligence-led strategies that provide results for our clients.

From small businesses to large companies, our PPC experts have helped entrepreneurs maximise their campaigns at the right budget. What’s more, we have evaluation tools to monitor success.

Our client list includes Carnival UK, University of Southampton, Ordnance Survey, ABP, BBC South Southampton Solent University, Southampton Airport, and the NHS.

We have worked with businesses across Southampton and some of them operate in Eastleigh, Totton, Romsey, and Winchester.

Contact us today

Do you want a bidding strategy that will make you campaign pop? Get in touch with our PPC marketing department.

Call us on 02380 970 979 or send us an email today.