Bidding Strategies are different avenues you can take to obtain the desired placement in Google Ads. For example, you can choose CPC or Cost-Per-Click and set manual limits on your keywords. Or you can automate the process and go with Automatic CPC bidding. This is when Google takes into account your historical data along with similar keywords and industries and bids on your behalf.
Cost-per-acquisition or CPA bidding strategies look at the final action or conversion you wish to take place. It can be signing up for a newsletter, contacting you, calling your office or making a purchase. The value of your conversion depends on what your ROI is. A purchase conversion for a large farm equipment retailer, worth thousands of dollars may be worth 10X more than signup for a local non-profit newsletter.
Bidding strategies can also apply to impressions. When a brand is just starting you cannot expect purchases right out of the gate. You need to let people know you exist, what you sell, what they should buy from you and how they can buy. This takes numerous impressions, over-time so that potential targets begin to consider you when needed. CPM or Cost-per-thousand impressions is one of the best bidding strategies when just beginning to get your name and logo out in front of as many people as possible. If using Video in the display network vCPM can also be used to reach the same goals via video ads.
If you are unsure of what bidding strategy to use for your business, Contact our Google Certified experts