Bidding strategy is crucial in Google Ads. If this course were a restaurant management program, this lesson would be the one where we learn how to price the menu, because how you \”charge\” and \”spend\” determines your profitability. That’s how central bidding is to a successful Google Ads campaign.
When you create a campaign in Google Ads, one of the most critical decisions you’ll make is choosing the right bidding strategy. Your choice here can directly influence whether your ads drive sales, leads, or simply visibility.
You’ll notice a left-hand navigation panel in the setup. After defining your campaign name, location, and budget, the next big step is Bidding.
Google asks: Which Google Ads bidding strategy do you want to use?
Before choosing, let’s first understand what bidding actually means.
What is Bidding in Google Ads?
Imagine you’re running a language learning app that wants to appear when someone searches “learn Spanish online.”
You type that into Google, and several ads appear at the top. Those placements aren’t random but they’re the result of a real-time auction behind the scenes.
Multiple companies might be targeting that same keyword. But how does Google decide who shows up first?
It comes down to how much you’re willing to pay for a click, along with your ad quality and expected impact.
- Company A: ₹50 per click
- Company B: ₹40 per click
- Company C: ₹25 per click
Lower bids (say ₹5–₹10) might not show at all. But it’s not always about the highest bid. Google also considers your ad relevance, landing page quality, and expected click-through rate. This system is what we call an auction, and your approach to participating in it is your bidding strategy.
Let’s Explore the Four Core Google Ads Bidding Strategies (Which Branch into Seven)
1. ✅ Conversions (Maximize Conversions or Target CPA)
Think of this like running a real estate agency website. Your goal? Get people to fill out your lead form.
- You have conversion tracking set up, but you don’t know the value of each lead.
- A filled form might turn into a ₹100,000 sale… or nothing.
- There’s no direct revenue assigned to that conversion.
Strategy A: Maximize Conversions (No Limit)
You\’re telling Google:
\”Here’s my budget. Use it all. Get me as many leads as possible!\”
Example:
A real estate agency sets a ₹500 daily budget. Google spends the full amount daily to maximize filled forms, regardless of the quality of the leads or cost per lead.
Strategy B: Target CPA (With Limit)
You\’re telling Google:
\”Only spend if you can get me leads at ₹100 or less. If not, don’t spend.\”
Example:
A coaching institute sets a Target CPA of ₹200. If Google thinks it will cost ₹300 per registration, it might not spend at all that day.
2. 💰 Conversion Value (For E-commerce or Sales-driven Goals)
This is ideal for businesses where you know the exact revenue each conversion brings. Think online stores!
Strategy A: Maximize Conversion Value (No Limit)
You\’re telling Google:
\”Spend my budget. Get me the highest total sales value you can.\”
No specific profit goals, just maximize sales value.
Example:
An online gadget store gives Google ₹1,000/day. Google tries to get ₹5,000 in sales from that ₹1,000 but sometimes it could be more, or sometimes less.
Strategy B: Target ROAS (With Limit)
You\’re telling Google:
\”I want ₹5 in return for every ₹1 I spend. Only run ads if this is possible.\”
Example:
A luxury skincare brand sets a Target ROAS of 500%. Google ensures that for every ₹1,000 spent, at least ₹5,000 in sales is earned or it won’t spend that day.
⚠️ Note: You need 15 conversions in the last 30 days to use this strategy. If you’re new, you can start with \”Conversions\” instead.
3. 🖱️ Clicks (Great for Brand Awareness & Traffic)
This works best for businesses that want to drive traffic to their site and increase visibility.
Strategy A: Maximize Clicks (No Limit)
You’re telling Google:
\”Here’s my budget. Just get me as many clicks as possible.\”
No targeting for conversions here, just get traffic.
Example:
A blogger wants more people to visit their site, so they give Google ₹300/day to maximize clicks on their articles. Google might spend ₹300 and get 100 clicks, or it could get 200 clicks if the competition is low.
Strategy B: Target CPC (With Limit)
You’re telling Google:
\”Only spend if you can get clicks at ₹5 or less.\”
If Google can’t get those clicks at that price, it won’t spend.
Example:
A local bakery wants traffic to its website, but doesn’t want to spend more than ₹5 per click. Google ensures that clicks are priced under ₹5, or it won’t show the ad.
4. 👁️ Impression Share (Always Manual)
This strategy ensures your ad shows up as often as possible, which is great for branding (helps dominate visibility which is ideal for brands that need to own a keyword).
Use this when:
- You care more about visibility than conversions.
- You want to dominate search results for specific terms. Like you want your ad to always appear for a specific search term.
Here’s How It Looks in Real Life:
Example 1:
You work at McKinsey & Co., a high-value consulting firm. You only get one conversion a week, but each is worth ₹5,00,000+.
Instead of focusing on conversion costs, you focus on always appearing when someone searches for \”enterprise strategy consulting.\”
You set your goal as “Top of page, 100% impression share”. Google tries to make sure your ad is always shown at the top.
Example 2:
You work at a top legal firm. Each client is worth ₹10 lakh+. You don’t care about cost-per-click; you just want to show up every time someone searches \”corporate legal services in Mumbai.\”
You set: Top of page, 100% Impression Share. Google shows your ad as close to the top as possible, every time.
Old UI Name:
- Target Impression Share
🔄 Wait, You Said Four Strategies…What About Seven?
Great catch! These four Google Ads Bidding strategies branch into seven depending on whether you use a manual/targeted or automated setting:
| Strategy Type | With Limit (Manual/Target) | Without Limit (Automated) |
| Conversions | Target CPA | Maximize Conversions |
| Conversion Value | Target ROAS | Maximize Conversion Value |
| Clicks | Manual CPC / Target CPC | Maximize Clicks |
| Impression Share | – | Always Manual |
Beginner’s Tip: Start Simple, Learn Fast
If you\’re just starting out and your account has low data (fewer than 15 conversions in the last 30 days), begin with Maximize Conversions. It allows Google to learn and optimize fast.
Once you gain traction, move to Target CPA or Conversion Value based strategies for more control.
Bonus: New Customer Acquisition Strategy
Want only new users to see your ads?
Google now allows bidding specifically for new customers or excluding existing ones.
Example:
You run an online English learning platform. You enable \”Only Bid for New Customers.\” Google avoids showing your ad to returning visitors who didn’t convert.
Putting It All Together
Google Ads bidding isn’t just about spending more, but it’s about bidding smart. The better you align your strategy with your business goals, the more likely you are to drive real results.
So go ahead, pick your strategy wisely, and let Google’s engine drive the right traffic, leads, or sales your way.