Types of Bidding Strategies in Google Ads
- Jeffrin
- Mar 4
- 9 min read
Updated: Mar 28
What is Google Ads Bidding?
Imagine you and your friends want to buy the last slice of pizza at a shop. You all shout out how much you're willing to pay for it. The shop owner listens and gives the pizza to the person who offers the most AND seems like a good customer.
This is just like how Google Ads works!
Who Runs the Auction?
👉 Google runs the auction every time someone searches for something.
Who Uses Bidding?
👉 Businesses (like pizza shops, salons, and online stores) use bidding to show their ads when people search on Google.
How Does Google Decide the Winner?
Google looks at three things:
✔️ How much money you’re willing to pay (your bid 💰)
✔️ How good your ad is (does it match what the person is searching for? 📢)
✔️ How likely the person is to click and buy (user experience 🔍)
How to Get the Best Results?
Since different businesses have different goals, they use different bidding strategies:
🎯 Want more people to visit your website? → Use "Get More Clicks" bidding
📞 Want more phone calls? → Use "Get More Calls" bidding
👀 Want your ad to always show at the top? → Use "Be Seen First" bidding
By choosing the right bidding strategy, businesses can get more customers while spending their money wisely.
That’s how Google Ads bidding works! 🚀
3 Types of Google Ads Bidding Strategies
Each bidding type is like a different way of deciding the price of your ad clicks.
Bidding Type | Bidding Options | Who Controls the Bid? | Goal | Best For |
You decide the bid amount | Control over every click cost | Beginners or small businesses | ||
Google adjusts bids for you | Get more clicks/conversions without managing bids | Medium businesses | ||
Google AI optimizes bids | Maximize profit, using AI to find the best audience | Advanced advertisers |
1.Manual Bidding
How it Works?
You set the maximum bid for each click manually.
Example:
You decide you’ll pay ₹10 per click for the keyword "cheese pizza near me".
For "pepperoni pizza delivery", you’re willing to pay ₹15 per click because it’s more profitable.
Google won’t bid more than what you set.
Bidding Options in Manual Bidding
Manual CPC (Cost-Per-Click) – You set the maximum price you’ll pay per click.
👉 Example:You own FoxElk Pizza.
Cheese pizza → ₹10 per click
Pepperoni pizza → ₹15 per click
Veggie pizza → ₹8 per click
If 10 people click your ad, your cost will be 10 × ₹10 = ₹100.
When to Use Manual Bidding?
✔ If you want full control over costs.
✔ If you are testing keywords.
✔ If you have a small number of ads to manage.
When NOT to Use Manual Bidding?
If you have many keywords, it’s hard to manage manually.
Google won’t optimize for better performance.
2.Automated Bidding – Google Adjusts the Bids for You
How it Works
Instead of setting manual bids, you tell Google your goal.
Google adjusts bids automatically to get the best results.
Example:You tell Google:
"I want as many clicks as possible for ₹500 per day."
Google raises or lowers bids based on how likely someone is to click.
Bidding Options in Automated Bidding
When to Use Automated Bidding?
✔ If you don’t have time to manage bids manually.
✔ If you want Google to optimize spending.
✔ If you care more about results than full control.
❌ When NOT to Use Automated Bidding?
🚫 If you don’t trust Google’s AI.
🚫 If you have a very small budget.
Maximize Clicks – Getting the Most Clicks for Your Budget
What It Does:
Google automatically sets bids to get as many clicks as possible within your daily budget.
It doesn’t care about sales, only about getting more traffic to your site.
When Should You Use Maximize Clicks?
✅ Good for:
✔ If you want more website visitors (not necessarily sales).
✔ If you don’t know the right bid and want Google to decide for you.
✔ If you are testing keywords and want to see which ones perform best.
❌ Bad for:
🚫 If clicks don’t always lead to sales (e.g., many visitors but no pizza orders).
🚫 If your goal is conversions (actual sales).
Example: Maximize Clicks for a Pizza Shop
Scenario 1: New Pizza Shop Launch
You own a new pizza shop 🍕 and want people to know about it.👉 You create an ad that says "Best Cheese Pizza in Mumbai – Order Now!"👉 You set a budget of ₹500 per day.👉 Google automatically adjusts bids to get as many clicks as possible.
Results:
✔ Your website gets lots of visitors
❌ But not all visitors actually order pizza
Good for: If you just want to increase traffic and brand awareness.
Maximize Conversions – Getting the Most Customers
What It Does:
Google automatically adjusts bids to get the most conversions (sales, sign-ups, leads, etc.).
It focuses on who is most likely to buy rather than just clicking the ad.
Google analyzes past data to bid more for users who are likely to convert.
When Should You Use Maximize Conversions?
✅ Good for:
✔ If you want actual sales/orders, not just traffic.
✔ If you have a clear goal (e.g., getting more online pizza orders).
✔ If you have conversion tracking set up (Google needs data to optimize).
❌ Bad for:
🚫 If you don’t have enough conversion data (Google won’t know who to target).
🚫 If you just want brand awareness (Maximize Clicks is better for that).
Example: Maximize Conversions for a Pizza Shop
Scenario 2: Driving More Pizza Orders
👉 Your goal is to increase online pizza orders.
👉 You set a budget of ₹500 per day.
👉 Google automatically increases bids for users likely to order.
Results:
✔ Fewer clicks, but those who click are more likely to place an order
✔ Google focuses on showing ads to people who have previously ordered pizza online
✔ You get higher sales compared to Maximize Clicks
Good for: If you care more about sales than website visits.
Target Impression Share – Dominating the Search Results
What It Does:
Google adjusts bids to show your ad at the top of search results as often as possible.
You choose where you want your ad to appear:
Top of the page (always first)
Anywhere on the page
Top of search results 70% of the time
When Should You Use Target Impression Share?
✅ Good for:
✔ Brand awareness – If you want your brand to be seen everywhere.
✔ Beating competitors – If you want to outbid competitors and stay on top.
✔ Local businesses – If you want your pizza shop’s ad to always be visible when people search "pizza near me".
❌ Bad for:
🚫 If you have a small budget – You might run out of money quickly.
🚫 If you care more about sales than visibility.
Example: Target Impression Share for a Pizza Shop
Scenario 3: Winning Against Competitors
👉 You want your pizza shop ad to ALWAYS be the first result.
👉 You set your Target Impression Share to 90% (meaning your ad will appear 90% of the time at the top).
👉 Google increases your bids to make sure you appear before your competitors.
Results:
✔ Your ad dominates search results for "Best Pizza in Mumbai"
✔ People recognize your brand because they keep seeing your ad
❌ You might pay a lot per click, even if the person isn’t ready to buy
Good for: If you want maximum visibility and to beat competitors.
3.Smart Bidding – AI-Driven Optimization for Maximum Profit
How it Works
Smart Bidding uses machine learning (AI) to find the best customers for you.
🚀 Example:
Google analyzes data (location, device, search history, time of day).
It adjusts bids in real-time to show ads to people who are most likely to buy.
Bidding Options in Smart Bidding
When to Use Smart Bidding?
✔ If you have a lot of data (30+ conversions per month).
✔ If you trust AI to optimize results.
✔ If you want high-profit customers.
❌ When NOT to Use Smart Bidding?
🚫 If you don’t have enough data (Google needs learning time).
🚫 If you want manual control.
Target CPA (Cost-Per-Acquisition) – Controlling the Cost of Getting a Customer
What It Does
Google automatically adjusts your bids to get the most conversions while keeping the cost per conversion below or at your target CPA.
You set a target of how much you are willing to pay for each new customer (not just clicks).
When Should You Use Target CPA?
✅ Good for:
✔ If you want more customers but have a fixed budget per customer.
✔ If you have at least 30 conversions per month (so Google has enough data).
✔ If you don’t want to manage bids manually.
❌ Bad for:
🚫 If you have low conversions (Google needs data to optimize).
🚫 If your industry has unpredictable customer costs.
Example: Target CPA for a Pizza Shop
Scenario 1: Controlling the Cost of Customer Acquisition
Your Goal:
👉 You want to get new customers for ₹100 each (₹100 CPA).
What You Do:
👉 You set your Target CPA at ₹100.
👉 Google will automatically adjust bids to bring in customers at ₹100 or lower.
What Google Does:
✔ If John (a hungry customer) is likely to order, Google may increase the bid to ₹50 to get him to click.
✔ If Sam (who rarely orders online) is searching, Google lowers the bid since he is unlikely to buy.
Results:
✔ You spend ₹100 per customer, not per click.
✔ Google stops wasting money on people unlikely to convert.
Good for: If you want more customers without exceeding your cost per order.
Target ROAS (Return on Ad Spend) – Maximizing Profits
What It Does
Instead of focusing on cost per customer, Target ROAS focuses on how much revenue you get for every ₹1 spent.
You tell Google, "I want ₹4 in revenue for every ₹1 I spend."
Google prioritizes high-value customers who are more likely to spend more.
When Should You Use Target ROAS?
✅ Good for:
✔ If you want more profitable customers, not just more customers.
✔ If you have different product values (e.g., ₹200 pizzas vs. ₹1,000 bulk orders).
✔ If you have historical sales data (past conversions).
❌ Bad for:
🚫 If you have low conversions (Google won’t have enough data).
🚫 If you just want more traffic (Maximize Clicks is better for that).
Example: Target ROAS for a Pizza Shop
Scenario 2: Prioritizing High-Spending Customers
Your Goal:
👉 You don’t just want any customers, you want customers who spend ₹500+ on orders.👉 You tell Google: “For every ₹1 I spend, I want ₹4 in return” (Target ROAS = 400%).
What Google Does:
✔ If Priya usually spends ₹600 on orders, Google will increase the bid for him.
✔ If Kavin only spends ₹100 on orders, Google lowers the bid or doesn’t show the ad to her.
Results:
✔ You get fewer clicks, but the customers you get spend more.
✔ You increase profits without wasting money on low-value buyers.
Good for: If you want maximum return on your ad spend and high-value customers.
Maximize Conversions with Enhanced CPC – Hybrid Strategy
What It Does
Enhanced CPC (ECPC) is a mix of manual and automated bidding.
You set your maximum CPC bid manually, but Google adjusts it dynamically to increase conversions.
If Google thinks a user is likely to convert, it raises your bid automatically.
If a user is unlikely to convert, Google lowers your bid.
When Should You Use Enhanced CPC?
✅ Good for:
✔ If you want manual bidding control but also want Google to optimize for sales.
✔ If you don’t have enough conversion data to use Smart Bidding fully.
✔ If you are testing a new campaign.
❌ Bad for:
🚫 If you want full automation, use Maximize Conversions or Target CPA instead.
🚫 If your budget is too small, the automated increases may spend too much.
Example: Enhanced CPC for a Pizza Shop
Scenario 3: Adjusting Bids for Sales Without Losing Control
Your Goal:
👉 You want to control your maximum CPC, but let Google adjust when needed.
What You Do:
👉 You set manual CPC bids (e.g., ₹10 per click).
👉 You enable Enhanced CPC, so Google can increase or decrease bids based on conversion probability.
What Google Does:
✔ If Lisa is highly likely to order, Google raises the bid to ₹15.
✔ If Tom is unlikely to order, Google lowers the bid to ₹5.
Results:
✔ You get more sales while keeping some control over bids.
✔ Google optimizes for conversions while respecting your bid limits.
Good for: If you want automation but still want control over CPC bids.
Summary: Which Bidding Strategy Should You Use?
✔ If you want full control: → Manual CPC
✔ If you want more traffic: → Maximize Clicks
✔ If you want more sales: → Maximize Conversions
✔ If you want to control how much you pay per order: → Target CPA
✔ If you want to get the best return on investment: → Target ROAS
Final Thoughts
Manual Bidding is like driving a car yourself.
Automated Bidding is like a car with cruise control.
Smart Bidding is like a self-driving car (AI makes all the decisions).
I think now you clear overview of what is Google ad bidding and it types.