Bidding Strategy
The approach used to set and adjust ad auction bids, from manual control to automated machine learning optimization.
Definition
Bidding strategies determine how much you pay for ad placements. Options range from manual CPC (you set exact bids) to automated strategies like Target CPA, Target ROAS, Maximize Conversions, and Maximize Clicks.
Modern automated bidding uses machine learning to optimize bids in real-time, considering signals like device, location, time, and user history that manual bidding cannot process.
Why It Matters
Bidding strategy directly impacts cost efficiency and campaign performance. The right strategy aligns with campaign goals; the wrong one wastes budget or misses opportunities.
Automated bidding has matured significantly, often outperforming manual management. But choosing the right automated strategy—and giving it proper data and constraints—requires understanding how each works.
Examples in Practice
A campaign switches from manual CPC to Target CPA, and machine learning optimization reduces cost per conversion by 30% while increasing volume.
A brand uses Target ROAS bidding for shopping campaigns, automatically adjusting bids based on predicted conversion value and achieving profitability goals.
A company with limited conversion data uses Maximize Clicks initially to build data, then transitions to Target CPA once sufficient conversions accumulate.