In a nutshell, Google Ads is like an auction where businesses will expect rationally for attention, where smart works get higher bidding chances with visibility. Outbidding is no longer needed to win in this action, and the digital environment has received a boost with automation tools; it has become essential to take care of strategy, data and timing for just one action. 

How to bid then? Take a stretch on your budget, boosting conversions, and placing your ads at the right time and right place. In this article, we’ll break down everything you need to know about Google Ads Bidding Strategies and choose the best one for your goals. 

What is Google Ad Bidding?

The process of setting on how much you’re willing to pay for a user to take a specific action is referred to as Google Ad Bidding. The actions could be clicks on your ad, views of your videos, or actions specific to conversions on your website. This is how Google Ads works. 

Every time, as someone searches on Google or visits a site in the Google Display Network, an auction takes place behind the scenes to decide how ads will be displayed and in what order. Bid thus becomes a key factor in this auction, with your quality and relevance of your ads. 

Types of Google Ads Bidding Strategies

There are generally three types of Google Ads bidding strategies- manual, automated and smart bidding. 

Manual bidding strategies refer to the manual adjustment of bids, which are done by yourself, with no amount of automation from the part of Google Ads at the keyword or ad group level. You only need to specify the maximum amount at you will pay for a click on your ad for a keyword. It essentially requires consistent efforts and attention so that campaigns are regarded as effective.

Automated bidding strategies have the backing of Google Ads for bidding on ads. These bids are optimised by Google Ads by using its machine learning so that it also meets the goals of your campaign. It is best to use when time on bidding can be saved without hindering the ad’s performance. 

Smart bidding strategies are also known as “auction-time bidding” and come under the umbrella of automated bidding strategies. It is automated in the sense that optimisation of bids is for maximising the conversions or conversion value during every auction. Smart bidding strategies include tCPA, tROAS, maximise conversions and conversion values, and enhanced CPC. 

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Key Factors Influencing Google Ads Bidding

There are certain factors that Google considers for choosing the winner in each of the auctions. They can be listed as follows:-

  • Max cost per click(CPC): The maximum amount of money you are willing to pay. 
  • Quality Score:  shows the quality and relevance of an ad depending on the expected click-through rate, relevance, and landing page experience. 
  • Search Context: Factors like search terms, location, search time, and device type for displaying the relevant ads. 
  • Auction Competitiveness: Ads with similar ad ranks compete closely for placement, leading to higher CPCs. Any gap in rank can easily for the other party, and they may need to pay more for the spot.
  • Ad Rank thresholds: minimum standards for ad quality and relevance, regardless of how much you bid. 
  • Ad assets and formats impact: Ads are more appealing when ad assets like phone numbers or additional links are included. Google Ads thus predicts how these assets and formats have an impact on your ad’s performance. 

What are the Best Google Ads Bidding Strategies To Use?

Nowadays, bidding strategies for Google Ads are quite a necessity to maintain the health of ad performance. So what could be those strategies? Let’s figure it out. 

1. Manual CPC Bidding

If you’re familiar with manual cost-per-click bidding strategy, there is something you may have known. With this strategy, you have the say to set the maximum amount you’re willing to pay for every click, besides having full control over your budget and bids. For every new advertiser, this is one of several bidding strategies in Google Ads. The sole reason is that their campaigns are much focused on traffic and ad spend. 

How does it work?

You set the maximum amount you’re willing to pay for each click, either at the keyword level or ad group level. Then monitor the campaign performance and manually adjust bids to improve results or control costs. This bidding is available in Google Search and Display Networks. 

Pros:-

  • The highest level of control over individual bids.
  • Respond to quick market changes or data from campaigns.
  • Ideal for campaigns with clear, high-performing keywords. 

Cons:-

  • Requires constant oversight and thus consumes time excessively. 
  • Imposes a risk of under-/overbidding in case of mismanagement. 
  • No use of Google’s machine learning. 

2. Enhanced CPC Bidding

Enhanced cost-per-click bidding is like an extension to the manual CPC bidding strategy. The advertisers can use Google’s machine learning to expand their manually chosen maximum CPC bids for users. The only idea implied is that of maximum bidding for users it thinks have a higher chance of conversion and lower bids when conversion is less likely to occur. It’s thus a semi-automated strategy helping you balance manual control and automation. 

How does it work?

It automatically adjusts your manual bids during each ad auction to help you boost conversions. By using real-time signals like the user’s device, location or time, it decides whether to lower your bid or to raise it.  It usually keeps average CPC below the maximum bid, yet it can outrun that limit if the chances for conversion are high enough. It also works on both the Google Search and Display Networks. 

Pros:-

  • Balances manual control and automation.
  • Prioritises high-value clicks. 
  • Provides more manual control compared to strategies like tCPA and tROAS. 
  • Doesn’t need explicit CPA or ROAS targets

Cons:-

  • Tracking conversions is crucial to see the best results. 
  • Occasionally does it exceeds your maximum CPC. 

As of March 2025, Google has removed this bidding option, and even if you click on it, the bidding option would switch to manual CPC bidding. 

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3. Cost-per-thousand Impressions Bidding

CPM bidding strategy revolves around bidding and paying for every thousand impressions an ad receives, with garnering exposure becoming the key idea. For advertisers who have come around a tight budget and are also a new venture, CPM can be very useful. Campaigns for brand awareness, video ads, and Google Display Networks can be targeted for CPM bidding. 

How does it work?

For every thousand impressions, you should set an average cost that can be paid. The ads will be visible on YouTube or Display, and once they are shown, you’re charged, without any engagement or skips. Like that, ads reach a vast audience across the Display Network, boosting visibility and recognition of brands. There is another variation of CPM called the vCPM(viewable CPM), with which you can pay only when the user just gets to see the ads. 

Pros:-

  • Maximised reach and brand exposure.
  • Effective in managing costs for awareness campaigns. 

Cons:-

  • Doesn’t guarantee engagement or conversions. 
  • Efforts can be wasted when the cost is spent on uninterested viewers. 

4. Target Cost-per-action Bidding(tCPA)

Target CPA bidding in Google Ads is for those advertisers who are setting a maximum cost for every new customer acquisition from ad campaigns, that is striving for conversions rather than just the impressions or clicks. The maximum cost is also referred to as the average cost per action. As an automated bid strategy, you should have a very clear target for ROI and the value of each conversion for your business. 

How does it work?

Based on your targeted CPA, Google Ads will set bids with conversions at its core. It adjusts the bids in real time using historical data and signals like device, location and time.  While some conversions could cost more, and some less, Google Ads tries to balance them to match your average CPA over time. 

Pros:-

  • Automates bids for ROI
  • Maximise conversion within your budget. 
  • Tracks conversion data to avoid unprofitable clicks. 

Cons:-

  • The actual CPA is influenced by external factors, like changes to websites or shifts in market competition. 
  • New campaigns or ones with lower conversion volumes could not use this bidding, as historical conversion data is not available for them. 
  • More than double the tCPA is required for bidding. 
  • No option to set a maximum CPC for campaigns, but could be used for portfolio strategies. 

5. Target Return on Ad Spend Bidding (tROAS)

It’s a smart bidding strategy that optimises bids to maximise conversion value based on your desired return on ad spend(ROAS). This bidding strategy is suitable for advertisers promoting multiple products ot varied conversion values with specific ROI targets. Among the automated bidding strategies, this one uses auction-time bidding, for which Google will be optimising for conversion in every auction. 

How does it work?

First of all, set a target ROAS, i.e, the amount of return relative to the amount of ad spend. Google uses AI and real-time signals to adjust the bid, which is aimed at increasing revenue in relation to the cost it has incurred for the advertiser. 

Pros:-

  • Maximised revenue at desired ROI. 
  • Automates bids using real-time signals and conversion value. 
  • Great for eCommerce with varying product margins. 

Cons:-

  • Needs at least 15+ recent conversions for accuracy. 
  • Requires accurate conversion value tracking.
  • May reduce spend to meet ROAS goals, even if revenue potential exists. 

6. Maximise Conversions Bidding 

This is a fully automated bidding strategy that utilises your entire budget to get the highest number of conversions without focusing on targeting a specific ROI or CPA. This bidding strategy is a great option for those advertisers who are looking forward to maximising leads or sales volume without a strict cost-per-action target. 

How does it work?

During every auction, the campaign’s past performance is analysed and real-time signals are tracked. Then, bids are adjusted to drive many conversions within the available budget. 

Pros:-

  • Aims to utilise as much daily budget as possible to drive conversions. 
  • Adapts quickly to search behaviour and competition changes. 

Cons:-

  • There is a risk that overspending raises the CPA or lowers ROAS. 
  • Campaigns with specific ROI goals like target CPA or ROAS. 

7. Target Impression Share Bidding

Target impression share bidding strategy is about maximising your ad’s visibility on Google Search, which is known for brand awareness campaigns. It is firm in placing ads at the top of the page, at the highest position or among the higher positions.  

How does it work?

After setting a target impressions share, decide where your ad should appear. Google will adjust bids to meet your goal. 

Pros:-

  • Ideal for branded terms or dominating search visibility. 
  • Ensures consistent ad appearance in desired positions.
  • Supports brand presence in competitive searches. 

Cons:-

  • It can be costly in competitive markets. 
  • Not optimised for clicks or conversions- but for visibility. 

8. Maximise Clicks Bidding 

 As the name suggests, this bidding strategy aims to get the most clicks possible within your daily budget, which is also great for driving traffic. It is indeed useful when you already have a good conversion performance and in the path to drive more. 

How does it work?

Google automatically sets bids to generate the highest number of clicks. Then set a maximum CPC bid limit to control per-click costs. 

Pros:-

  • Ideal for traffic-focused campaigns.
  • Great for generating website visits. 
  • Can reduce average CPC and search impression share(SIS)

Cons:-

  • Lower quality of clicks and conversions. 
  • Less effective for conversion-driven campaigns

9. Cost-per-view Bidding

Cost-per-view bidding is a strategy in Google Ads mainly for video campaigns and platforms like YouTube. Therefore, you only need to pay for the number of views for every video ad, and when they interact, by clicking on a link, a call-to-action overlay. 

Pros:-

  • You only need to pay for engagement and not for anyone who skips out. 
  • Good for video interaction campaigns.
  • Great for raising awareness affordably. 

Cons:-

  • Not meant for direct conversions or website traffic. 
  • Views don’t guarantee conversions.
  • A full 30-second ad can get skipped, and short is better. 

Conclusion

In this article, we have covered potential topics for Google Ads bidding- what it is, types of bidding and also the factors that play a significant role in bidding. As a guide, we have covered the essential Google Ads bidding strategies in particular. 

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