Module 2.2: Determine your bid and budget (PART 2) Flashcards
- Determine a bid strategy based on your goals - About Manual CPC bidding - About enhanced CPC (ECPC) - About bid adjustments - About automated bidding - About Maximize Clicks bidding - About Target Search Page Location bidding - About Target CPA bidding - About "target outranking share" bidding - About Target ROAS bidding - Set a budget for your campaign - Why costs might exceed your average daily budget - Avoid a depleted daily budget
What is the Maximize Clicks automated bidding strategy?
Maximize Clicks automatically sets your bids to help get as many clicks as possible within your budget.
Maximize Clicks is available as either a standard strategy in a single campaign or portfolio bid strategy across multiple campaigns, ad groups and keywords.
What is the Target Search Page Location automated bidding strategy?
Target Search Page Location automatically sets your bids to help increase the chances that your ads appear at the top of the page or on the first page of search results.
It’s only available as a portfolio bid strategy on the Search Network.
What is the Target Outranking Share automated bidding strategy?
You choose a domain you want to outrank in search results and how often you want to outrank it, and AdWords automatically sets your Search bids to help meet that target.
It’s only available as a portfolio bid strategy.
What is the Target CPA automated bidding strategy?
Target CPA automatically sets Search or Display bids to help get as many conversions as possible at the target cost-per-acquisition (CPA) you set. Some conversions may cost more or less than your target.
Target CPA bidding is available as either a standard strategy in a single campaign or portfolio bid strategy across multiple campaigns and ad groups.
Target CPA bidding was previously referred to as “Conversion Optimizer.”
What is the Enhanced cost-per-click (ECPC) automated bidding strategy?
Enhanced cost-per-click (ECPC) automatically adjusts your manual bids to try to maximize conversions.
ECPC is available as an optional feature with Manual CPC bidding or as a portfolio bid strategy. It is fully compatible with third-party bidding systems, including those that automate your bids.
Learn more about Enhanced CPC.
What is the Target ROAS automated bidding strategy?
Target ROAS automatically sets bids to help get as much conversion value as possible at the target return on ad spend (ROAS) you set. Some conversions may have a higher or lower return than your target.
It’s available as a portfolio bid strategy and a standard strategy for individual campaigns.
What are the different settings available with the Maximize Clicks automated bidding strategy?
- Maximum CPC bid limit
You can set a cap on bids for any keywords, ad groups, or campaigns when using a portfolio Maximize Clicks bid strategy. - Target spend
This is the amount you’re willing to spend each day on all of the keywords, ad groups, and campaigns that use a specific bid strategy.
What are the different settings available with the Target Search Page Location automated bidding strategy?
- Placement
Top of the first search results page
Anywhere on the first search results page
Let AdWords automatically raise or lower bids to meet the [top of the page / first page] bid estimate. The estimated [top of the page / first page] bid amount approximates the cost-per-click (CPC) bid that might be needed for your ad to reach the [top of the page / first page] of Google search results when a search term exactly matches your keyword. - Bid Automation
Automatically raise and lower bids
Set bids myself, but automatically adjust bids (allow AdWords to automatically raise bids when they drop below the estimate) - Optional
Bid adjustment: Use it to increase or decrease your bid by a percentage of the top of the page or first page bids.
Manual CPC bid limit - Advanced
Limited budgets: Choose whether to raise your bids if your campaign becomes “Limited by budget.”
Low quality keywords: Choose whether or not to raise your bids on keywords with a Quality Score of less than 4.
What are the different settings available with the Target CPA automated bidding strategy?
- Target CPA
This is the average amount you’d like to pay for a conversion. - Bid Limit
Max. bid limit: The highest maximum / minimum CPC bid that you want AdWords to set for any keywords (Max bid only), ad groups or campaigns using Target CPA bidding. - Device bid adjustments
Device bid adjustments for Target CPA allow you to prioritize conversions by device. Bid adjustments for Target CPA modify the value of your CPA target. - Effective target CPA
Your effective target CPA is the average CPA that your strategy optimized for.
It includes the average of your device bid adjustments, ad group target CPAs, and any changes you’ve made to your target CPA over time. Because of these variables, your effective target CPA may be different from the target CPA that you set.
What are the different settings available with the Target outranking share automated bidding strategy?
- Benchmark domain
Select the domain whose ads you’d like to outrank in search results. - Target outranking share
Enter the percentage of auctions that you would like to outrank the selected domain. - Max. bid limit
The highest max. CPC bid that you want AdWords to set for any keywords, ad groups, or campaigns using maximize conversions. - Bid automation
Automated bids gives AdWords the ability to raise and lower bids as needed to outrank the selected domain. With this setting, there is no need to set bids manually.
Manual bids allows you to set bids yourself, while AdWords adjusts bids so that they are at least as high as needed to outrank the selected domain.
- Low quality keywords
Select how you want AdWords to bid for keywords that are of low quality for your ad auctions.
What are the different settings available with the Target ROAS bidding strategy?
- Target ROAS
Your target ROAS is the average conversion value (for example, revenue) you’d like to get for each dollar you spend on ads. - Bid limits
Setting bid limits for “target ROAS” is not recommended because it can restrict AdWords’ automatic optimization of your bid. It can also prevent AdWords from adjusting your bids to the amount that best meets your target ROAS. If you do set bid limits, they’ll be used in Search Network auctions only.
Max. bid limit / Min. bid limit: The [highest manual CPC / minimum max. CPC] bid you want AdWords to set for any keywords, ad groups, or campaigns using “target ROAS.”
- Ad group targets
You can apply an individual target ROAS to your ad groups by using a standard campaign strategy. With a portfolio strategy, your campaigns, ad groups, and keywords are optimized collectively for a single target. But by using a standard strategy, you can set individual targets for each ad group. - Effective target ROAS
Your effective target ROAS is the average ROAS that your bid strategy optimized for. It averages the changes you’ve made to your target ROAS for any given time period. For this reason, your effective target ROAS may be different from the target ROAS that you set.
Why would a campaign(s) cost more than their daily budget?
f you’ve noticed that the total daily cost of your campaign is more than your daily budget amount, that means your campaign is spending more of your budget on days with higher Search traffic and less on days with lower traffic.
Search traffic can fluctuate for several reasons
How are you charged when campaigns exceed their daily budget?
Up to 120% of your campaign’s daily budget can be used to show your ads on certain days of the week or certain times of the month based on fluctuations in traffic — but not more than you spend on your campaigns each month.
Example
If your daily budget is US$10, up to US$12 can be used to show your ads on certain days based on fluctuations in traffic.
What is an overdelivery credit?
A credit applied to your account if we’ve shown your ad so much that you exceed your monthly charging limit. Google doesn’t charge you for these clicks and can automatically issue a credit on your invoice.
How does overdelivery credit work?
When overdelivery happens, your total daily cost could be up to 20% more than your average daily budget.
But in a complete monthly billing period, you’ll never be charged more than your monthly charging limit – the average number of days in a month (30.4) multiplied by your average daily budget.
If Google overdelivers your ads too often, and you accrue more costs in a complete monthly billing period than your budget allows, an overdelivery credit is automatically applied to your account.
