A bid strategy is how advertisers decide how much to pay for ad placements (keywords, audiences, or placements) to achieve specific goals—such as clicks, leads, or sales. Bid strategy influences how efficiently your budget is spent and how competitive your ads are in the auction.
Examples of bid strategies include:
- Manual Bidding: Advertisers set their bid amounts for keywords or ad placements.
- Automated Bidding: The advertising platform adjusts bids dynamically based on factors like conversion likelihood or target return on ad spend (ROAS).
- Target Cost-Per-Action (CPA): Focused on achieving a specific cost per conversion.
- Maximize Clicks: Aim to generate as many clicks as possible within the budget.
Why Bid Strategy Matters
Choosing the right bidding method helps you:
- Control cost per click (CPC) or cost per acquisition (CPA)
- Maximize conversions or revenue
- Improve campaign profitability and efficiency
Bid strategy helps determine how much you pay per click, lead, or sale. Align your bidding approach with your marketing goal, use data to guide decisions, and let automation optimize performance.
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