Mastering Bidding Strategies in Google Ads: Best Practices for 2024
Jan 29, 2024In the dynamic world of digital advertising, setting the right bidding strategies is like mastering the dark arts. One wrong move, and you might find yourself sabotaging the performance of your Google Ads account. In this article, we delve into the intricacies of setting bidding strategies correctly, avoiding pitfalls that could lead to wasted ad spend and diminished returns.
👉 How Bidding Strategies in Google Ads Work
The Pitfalls of Premature Bidding:
Setting a Target ROAS or Target CPA too early in your campaign can spell disaster. It's crucial to exercise caution before jumping into these strategies, as hasty decisions can have long-lasting repercussions.
Ruin Your Account Performance:
- Setting your Target ROAS too high or Target CPA too low prematurely can halt all spending in your account overnight. This sudden pause in activity can lead to a significant drop in conversions and sales, severely impacting your overall campaign performance.
Limiting Account Growth:
- On the flip side, setting your Target ROAS too low or Target CPA too high can result in leaving money on the table. Google might end up charging you more for clicks than what you're paying for conversions, limiting your account's growth potential.
Best Practices for Bidding Strategies:
To navigate the dark arts of bidding successfully, consider these four best practices:
Delay the Decision:
- Resist the urge to introduce a Target CPA or Target ROAS too early. Waiting at least 3 months and ensuring a minimum of 30 conversions in the last 30 days provides Google with ample data to assess the types of searches and audience profiles that convert for your business.
- Google's conversion data reaches back 90 days, with the last 30 days being the most crucial.
- Waiting 90 days allows for a complete Google conversion data cycle on your account.
Pick & Stick:
- Once you've set a Target ROAS or Target CPA, avoid making changes for at least 30 days. Even if performance seems to be declining, it's essential to wait until you observe a 3-4 week period of stable results.
- Look for a stable Cost/Conversion or ROAS within a 20% high-low range over a 3-4 week period.
Set Realistic Targets:
- Set bidding targets based on your current campaign performance, not on desired outcomes. Avoid the mistake of setting targets too high without considering your existing results.
- Incrementally increase your Target ROAS or Target CPA based on current performance, aiming for gradual improvements.
Mastering the art of bidding strategies in Google Ads requires a strategic and patient approach. By delaying decisions, sticking to chosen strategies, and setting realistic targets based on current results, you can avoid the pitfalls that many advertisers encounter. Remember, bidding strategies are a tool to enhance account performance, and careful execution can lead to sustained success in the ever-evolving landscape of digital advertising.
