Broadplace, Google, Google AdWords, PPC, SEM

Google Adwords: Does my bidding strategy matter?

Adwords offers several bid strategies that allow businesses to match to their advertising goals in order to optimise their budget. Bidding plays a key role in ad rank and therefore the visibility of your ads to users, so it’s definitely an important factor to consider when setting up your Adwords. This article explains why bidding strategy is so important and what you need to consider to choose the right one for your advertising goals.


The simple formula that Google uses to rank adverts is:


Bid x ad quality


So assuming two companies have the same high quality ads (quality score), if you bid more, then your ad will appear higher. But wait…and this is where it gets interesting… being number one may not always be the best position.  Because higher ads don’t always get the most clicks. If your strategy is to get more conversions, then position 3-5 is best – providing of course, you have a good quality ad and landing page.


Bidding to a high position shouldn’t be your strategy, it should be based around your business and what you are trying to achieve with your ads. Let’s look more closely at the four basic goals that dictate your bidding strategy:



If you want customers to take a direct action on your site (conversions) then Adwords Smart Bidding will let you optimise for this.  Smart Bidding is based on Google’s machine learning from your campaign structure, landing pages, ad text, product information, keyword phrases to help your adverts perform better. 



If you want to generate traffic to your website, focusing on clicks and cost-per-click (CPC) bidding may be right for your campaign.



If you want to increase brand awareness – not drive traffic to your site – focusing on impressions may be the best bidding strategy. You can also use a Target Search Page Location to maximise visibility in a specific location.



It can take weeks, even months of manual testing to provide you with the right insight to develop a robust bid strategy. Businesses that are looking to save time spent gathering these essential learnings will undeniably benefit from Broadplace’s Qualified Adwords Specialists to monitor the campaign and get the optimum benefit from your budget. Contact us today for a FREE consultation!