Bid Strategy
The approach used to set and adjust bids for ad placements in paid campaigns.
Definition
A bid strategy is the method used to determine how much to pay for ad clicks or impressions. Strategies range from manual bidding with complete control to automated options like Target CPA, Target ROAS, or Maximize Conversions that use machine learning to optimize bids in real-time.
Why It Matters
The right bid strategy directly impacts campaign performance and budget efficiency. Automated strategies can process more signals than manual bidding, but require sufficient conversion data. Choosing the appropriate strategy depends on campaign goals, budget, and data availability.
Examples in Practice
A lead generation campaign uses Target CPA bidding to maintain $50 cost per lead. An e-commerce brand uses Target ROAS to achieve 400% return on ad spend. A brand awareness campaign uses Maximize Impressions to reach the largest audience.