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:
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.
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.
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.