If you’re running Google Ads, or you are Digital Marketing Students, and choosing the right bidding strategy is one of the most important decisions you’ll make. Your bidding strategy determines how Google spends your budget and what outcome you get — clicks, conversions, sales, or visibility.
In this blog post, I ’ll break down every Google Ads bidding strategy with examples, formulas, and when to use each, making it easy even for beginners.
What is Bidding in Google Ads?
Bidding in Google Ads is how you tell Google how much you are willing to pay for an interaction like
- a click,
- a view,
- or a conversion.
Types of Google Ads Bidding Strategies
Google Ads Bidding strategies are classified into two categories
- Manual Bidding : You control bids manually for each keyword/ad group. Manual bidding is best for Experienced advertisers, testing phases
- Smart (Automated) Bidding : Google uses machine learning to optimize bids in real-time. Smart bidding is best for Conversions, revenue goals.
All Google Ads Bidding Strategies (With Examples + Formulas)
| Bidding Strategy | Where to Use | When to Use | Campaign Objective | Campaign Goal Description | Formula (with ₹100 per day & ₹10 bid) |
|---|---|---|---|---|---|
| Manual CPC (Cost-Per-Click) | Search, Display, Shopping | When you want full control over individual keyword bids | Clicks (Traffic) | Manually set bids at keyword or ad group level to get the most clicks within your budget | Max Clicks = ₹100 / ₹10 = 10 clicks/day |
| Enhanced CPC (ECPC) | Search, Display | When you want semi-automation with conversion optimization | Clicks + Conversions | Google adjusts manual bids slightly to get more conversions | Actual CPC may vary: Clicks / 8–10/day |
| Target CPA (Cost Per Acquisition) | Search, Display, YouTube | When your goal is to get conversions at a specific cost | Conversions | Set a target CPA (e.g., ₹20). Google optimizes bids to maximize conversions at or below CPA. | Max Conversions = ₹100 / ₹20 = 5 conversions/day |
| Target ROAS (Return on Ad Spend) | Search, Display, Shopping, YouTube | When you track conversion value and want specific ROI | Conversion Value | Google tries to maximize revenue based on your target return (e.g., 300% ROAS means ₹3 revenue per ₹1 spent) | ROAS = Revenue / Cost. Eg: Target ₹300 revenue for ₹100 spent |
| Maximize Clicks | Search, Display | When your main goal is website traffic | Clicks | Google automatically sets bids to get the most clicks within your budget | Avg CPC assumed = ₹10 → Max Clicks = ₹100 / ₹10 = 10 clicks |
| Maximize Conversions | Search, Display, YouTube | When your goal is to get as many conversions as possible within budget | Conversions | Google auto-bids to get the highest number of conversions regardless of individual cost | Variable. If avg CPA = ₹20 → Max Conversions = 5/day |
| Maximize Conversion Value | Search, Display, Shopping, YouTube | When you want to focus on value from conversions rather than number | Conversion Value | Focus on driving high-value sales (e.g., higher cart value), not just quantity of conversions | Variable. ROI-based → depends on product/service pricing |
| Target Impression Share | Search | When your goal is to dominate visibility (e.g., brand awareness) | Impressions/Visibility | Set % share (e.g., 80%) of impressions in top or absolute top position | Cost varies. ₹100/day → fewer impressions if targeting high % |
| CPV (Cost Per View) | YouTube (Video campaigns) | When video views are more important than clicks or conversions | Views | Pay only when someone watches 30 seconds or interacts with your video | Max Views = ₹100 / ₹0.50 (CPV) = 200 views/day |
| CPM (Cost Per 1000 Impressions) | Display, YouTube | When you want exposure and reach over interaction | Impressions/Reach | Pay for 1000 impressions; used in awareness campaigns | ₹100 / ₹20 CPM = 5,000 impressions/day |
| tCPM (Target CPM) | Display, YouTube | When brand awareness is primary, and you want to control impression cost | Brand Awareness/Reach | Set average bid per 1000 impressions | Same as CPM: ₹100 / ₹20 tCPM = 5,000 impressions/day |
| vCPM (Viewable CPM) | Display (mostly), YouTube | When you only want to pay for viewable impressions (50% visible for 1 sec) | Brand Awareness | Pay for ads that are actually seen, not just served | ₹100 / ₹25 vCPM = 4,000 viewable impressions/day |
Notes on Formulas
- Clicks = Budget ÷ Avg CPC
- Conversions = Budget ÷ Avg CPA
- Impressions = (Budget ÷ CPM) × 1000
- ROAS = Revenue ÷ Spend (You decide revenue goals)
- Views = Budget ÷ CPV
Following is the Master Table Of Google Ads Terminology
| Parameter / Term | Description | Where to Use | When to Use | Benefits | Example | Formula (if applicable) | Related Metrics |
|---|---|---|---|---|---|---|---|
| Impressions | Number of times your ad was shown | All campaign types | Always measured — core visibility metric | Measures reach and visibility | Your ad is shown 1,000 times on websites | – | CTR, CPM |
| Clicks | Number of times users clicked on your ad | All campaign types | When measuring user engagement | Direct signal of interest | 150 clicks on a search ad | – | CTR, CPC |
| CTR (Click-Through Rate) | % of impressions that resulted in clicks | All campaigns | To gauge ad relevance and effectiveness | Higher CTR = more engaging ads | 150 clicks / 1,000 impressions = 15% CTR | CTR = (Clicks /
Impressions) × 100 |
Impressions, Clicks |
| CPC (Cost Per Click) | Cost you pay for each click on your ad | Mostly Search & Display | To understand ad cost efficiency | Tracks budget performance | ₹750 cost for 150 clicks = ₹5 CPC | CPC = Total Cost / Total Clicks | CTR, Total Spend |
| CPM (Cost per Mille) | Cost per 1,000 impressions | Display, Video (Awareness) | For reach and brand awareness campaigns | Controls impression-based budget | ₹300 for 1,000 impressions | CPM = (Cost / Impressions) × 1000 | Impressions, Cost |
| Conversions | User action defined as valuable (purchase, form fill, signup) | All campaigns (requires tracking setup) | When tracking ROI, lead/sale generation | Final goal of most campaigns | 25 users filled out a contact form | – | Conversion Rate, CPA |
| Conversion Rate | % of clicks that lead to conversions | Sales, Leads, App | To measure landing page/ad performance | Higher = better performance | 25 conversions / 100 clicks = 25% | Conv. Rate = (Conversions / Clicks) × 100 | Conversions, Clicks |
| CPA (Cost Per Acquisition) | Average cost paid for each conversion | Sales, Leads | When optimizing toward leads or sales | Optimizes budget per customer acquired | ₹1,000 spent for 25 conversions = ₹40 CPA | CPA = Total Cost ÷ Conversions | Conversions, Cost |
| Quality Score | Google’s 1–10 score for ad + keyword + landing page relevance | Search campaigns | To improve ad rank and lower CPC | Better score = lower costs, higher rank | Score of 8/10 for “Buy shoes online” | – | CTR, Ad Relevance, Landing Page Exp. |
| Ad Rank | Position of your ad in auction | Search campaigns | During each keyword auction | Higher rank = better visibility | You rank #1 on keyword “cheap flights” | Ad Rank = Bid × Quality Score | Quality Score, Bid |
| Target CPA | Smart bidding strategy aiming for a set CPA | Sales, Leads | When you want a predictable cost per lead | Automates bidding to hit target acquisition cost | Set ₹100 as Target CPA for eCommerce conversion | System adjusts bids to reach avg. CPA target | CPA, Conversions, Budget |
| Target ROAS | Smart bidding to achieve a target return on ad spend | E-commerce, Sales | When you want a certain revenue multiple | Automates to hit revenue goals | ₹1,000 ad spend → ₹5,000 revenue = 500% ROAS | ROAS = (Revenue / Ad Spend) × 100 | Revenue, Spend, Conversions |
| Maximize Conversions | Smart bidding to get the most conversions within budget | Sales, Leads, App | When you want max leads/sales with fixed budget | Automation + conversion goal = efficiency | ₹500 budget used to get 20 leads | System-driven (no manual formula) | Conversions, Budget |
| Maximize Clicks | Get as many clicks as possible within budget | Traffic campaigns | When primary goal is to drive visits | Great for traffic, awareness | ₹1,000 budget = 200 clicks | System-driven | Clicks, Budget |
| Target Impression Share | Shows your ad on top of search results at a desired share | Brand Awareness (Search) | When your brand must dominate results | Ensures visibility on top placements | Target 80% top of page for “brand name” | System-driven based on % goal | Impressions, Cost |
| Enhanced CPC (ECPC) | Semi-automated bidding to adjust manual bids for conversions | All campaign types | When you want some automation + control | Boosts conversions with flexibility | Bid ₹10, Google may raise to ₹12 if conversion likely | ECPC = Manual CPC adjusted by algorithm | CPC, Conversions |
| vCPM (Viewable CPM) | Cost per 1,000 viewable impressions (ad seen ≥ 1 sec, 50% visible) | Display & Video | For viewable impressions, brand lift | Ensures you pay only when ads are seen | ₹200 for 1,000 viewable impressions | vCPM = (Cost ÷ Viewable Impressions) × 1000 | Viewability, Impressions |
| CPV (Cost per View) | Cost per video view or 30 seconds watched | YouTube Video Ads | For awareness or product storytelling | Low-cost video engagement | ₹250 spent for 500 views = ₹0.50 CPV | CPV = Total Cost / Views | Views, Cost |
| Ad Extensions | Extra information (sitelinks, callouts, call) shown with your ads | Search & Display | When you want to increase CTR and ad quality | Increases ad space, provides more info | Add phone number and service pages below main ad | – | CTR, Ad Rank |
| Responsive Ads | Ads that automatically adjust size, appearance, and format | Display, Search, Discovery, PMAX | When flexibility across devices/formats is key | Saves time, adapts to more placements | Upload assets, Google tests & mixes them | – | CTR, Conversions |
| Negative Keywords | Keywords that prevent your ads from showing for irrelevant searches | Search & Shopping | When refining targeting or eliminating wasted clicks | Saves budget by avoiding poor matches | Adding “free” as negative for paid product ad | – | CTR, Quality Score, Spend |
| Landing Page Experience | How relevant and useful your site is after someone clicks | Search, Display, PMAX | When optimizing for quality score and conversions | Better UX = better Quality Score, lower CPA | Fast loading, mobile-optimized pages | – | Conversion Rate, Quality Score |
| Budget | The daily amount you want to spend on a campaign | All campaigns | Always required — controls ad delivery | Cost control and pacing | Set ₹500/day for Search Campaign | Daily Budget = Total Monthly Budget / Avg. 30.4 days | CPC, CPA, Impression Share |
Final Thoughts
Choosing the right Google Ads bidding strategy isn’t just about picking one from a list — it’s about matching your campaign goals, data, and budget.
-
If you’re new, start with Maximize Clicks or Maximize Conversions.
-
If you’re advanced, try Target CPA or Target ROAS once your campaign has data.
Remember, Google’s AI is powerful, but it performs best when guided by clear goals and quality data.
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