As you are structuring your campaign, you will need to determine what you would like to set your bids and budgets to. This is decided once you have determined where your ads will show and the audience to be shown to. In this post here, we will discuss different strategies that are best suited for your goals.
Choosing Your Budget
This number is determined by your willingness, on average, to spend daily on your campaign. But the question is, what do you set that number too? $5 per day or $90 per day Those two numbers are quiet different, so you want to make sure the budget aligns your goals. Also, the daily budget you set is not permanent, therefore it may be adjusted at anytime based on the performance.
If you are a new Adwords advertiser, It might be in your best interest to start with a small budget between $5 and $50, according to Google Partners. After a few weeks of the campaign running, you can re-evaluate the campaign’s performance and decide if the budget should be adjusted. It would not be best to set a high budget if you are new with Adwords unless you are a risk taker. Budgets can be stated in terms of what you are willing to spend per month, but in turn you would just divide that number by the average number of days.
Your Bidding Strategy
Campaigns vary depending on the type you choose, search or display, so AdWords offers different bid strategies to choose from that will suit the needs of the campaign that you choose.
1. Cost-per-click bidding (CPC): This is just as it sounds in the name, it is maximum amount you are willing to spend on your ad. Most advertisers will choose this bidding strategy because you are only paying for an ad when someone clicks on it. This can be both good and bad. This can be seen as optimal because money is only being spent when you know someone is looking at that ad. On the other hand, sometimes people accidentally click on ads that they close right away, so this is not drawing any value or traffic to your product or service.
2. Cost-per-impression bidding (CPM): With this bidding strategy, this is the maximum amount you are willing to spend per 1000 impressions. This strategy would be chosen if you are more concerned with building awareness and generating impressions on your advertisements rather than clicks.
3. Cost-per-acquisiton bidding (CPA): Under this bidding strategy, this is the maximum amount you are willing to spend per conversion. Essentially, this will convert a click into taking action on your website, such as purchasing your product or service.