Types of Bidding Strategies Every Advertiser Must Know

Struggling with low clicks, high costs, or poor conversions in your ad campaigns? The solution might be understanding the types of bidding strategies and the types of bidding strategies in Google Ads. Picking the right bidding type ensures your ads reach the right people at the right cost. 

This guide will walk you through each strategy, helping you save money, improve results, and get better control over your campaigns, even if you are a beginner or running small-budget ads.

Now, without further delay, let’s explore the bidding types.

Main Types of Bidding Strategies

There are three main types of bidding strategies in online advertising. Each type works differently and helps you reach different goals. 

The three main bidding types are:

• Manual Bidding Strategy
• Automated Bidding Strategy
• Smart/Enhanced Bidding

Before diving into all the detailed Google Ads strategies, let’s explore the three main types of bidding in detail.

1. Manual Bidding Strategy

Manual bidding is when you decide how much to pay for each click, impression, or action. The system does not change your bids automatically. You manage each keyword or ad yourself. This strategy is simple but requires active monitoring.

Pros

• Full control over every bid
• Helps test new keywords or ads
• Easy to track spending and performance
• Focus the budget on top-performing keywords
• Immediate adjustments are possible

Cons

• Time-consuming for multiple campaigns
• Requires constant attention
• Hard to scale large campaigns
• Mistakes can waste budget
• May miss opportunities if bids are too low

Best For: Small businesses, beginners, or campaigns where full control is important.

Example: You set $0.50 per click on a keyword. Each time someone clicks, you pay exactly $0.50.

2. Automated Bidding Strategy

Automated bidding lets the system decide bids based on your goals. You set a daily budget and goal, like getting the most clicks or conversions, and the system optimizes automatically. This saves time and often improves results using historical data.

Pros

• Saves time and effort
• Uses data to improve performance
• Can get more conversions within budget
• Easy for beginners
• Adjusts bids in real-time

Cons

• Less control over individual bids
• Needs sufficient data to work well
• May spend the budget quickly
• Results can be unpredictable at first
• Not ideal for very small campaigns

Best For: Advertisers who want to save time and get automated results.

Example: Your goal is to get the most clicks. The system automatically adjusts bids to bring more traffic.

3. Smart/Enhanced Bidding

Smart bidding combines manual control with automation. You set base bids, but the system adjusts them using signals like user behaviour, device, location, and past conversions. It aims to get better results while keeping some control.

Pros

• Balances control and automation
• Improves conversion rates
• Uses real-time data for smarter bidding
• Reduces wasted spend on low-value clicks
• Easy upgrade from manual bidding

Cons

• Needs conversion tracking
• Less control than full manual bidding
• Works best with some past data
• Can overspend if not monitored
• Not ideal for brand-new accounts

Best For: Advertisers with some data who want better results than manual bidding but still want partial control.

Example: You set a base bid of $1 per click. The system may raise it to $1.20 for users likely to convert.

Types of Bidding Strategies in Google Ads

Now that we know the main bidding types, let’s explore the different Google Ads strategies. Each strategy works differently and has its own purpose, advantages, drawbacks, and ideal use.

1. Manual Cost-Per-Click
2. Enhanced CPC Bidding Strategy
3. Maximize Conversions
4. Target CPA
5. Maximize Conversion Value
6. Target ROAS
7. Maximize Clicks
8. Target Impression Share
9. Cost Per Thousand Impressions (CPM bidding)
10. Cost Per Thousand Viewable Impressions (vCPM bidding)
11. Cost-Per-View (CPV bidding)
12. Portfolio Bid Strategies

Let’s cover Google Ads bidding strategies in detail.

1. Manual Cost-Per-Click 

Manual CPC is a strategy where you decide how much to pay for each click. The system does not change your bid automatically. You manage each keyword or ad yourself. It is simple and clear, but needs regular checking to perform well.

Pros

• Focus money on top-performing keywords
• Test new ads or keywords safely
• React quickly to changes in the market
• Easy to track keyword performance
• Works well for small campaigns

Cons

• Needs constant attention
• Hard to manage many ads at once
• May miss clicks if bids are too low
• Not easy to scale campaigns
• Mistakes can waste money

Best For: Small businesses or beginners who want full control.

Example: Set $0.50 per click. Each click costs exactly $0.50.

2. Enhanced CPC Bidding Strategy

Enhanced CPC adds smart automation to manual bidding. You set a base bid, and the system may raise or lower it based on the chance of conversion. You keep some control, but the system helps get better results.

Pros

• Combines control and automation
• Can increase conversions
• Uses past data to make better bids
• Reduces wasted clicks
• Easy upgrade from Manual CPC

Cons

• Needs conversion tracking
• Less control than full manual bidding
• Works best with some data history
• Might spend more than expected
• Not ideal for brand-new accounts

Best For: Advertisers with some data who want better results without full manual work.

Example: Set $1 per click. The system may raise it to $1.20 for users likely to convert.

3. Maximize Conversions

Maximize Conversions is fully automatic. The system uses your budget to get as many conversions as possible. You don’t choose bids manually. It uses data and behaviour signals to find the best clicks.

Pros

• Easy to use
• Gets the most conversions possible
• Learns and improves over time
• Uses the budget efficiently
• Saves time on manual management

Cons

• Cannot control individual bids
• Needs sufficient data to work well
• Can spend the budget quickly
• Not ideal for very small campaigns
• May prioritize low-value conversions

Best For: Advertisers who want more leads or sales without manual work.

Example: Goal: newsletter sign-ups. The system spends the budget to get as many sign-ups as possible.

4. Target CPA

Target CPA lets you set a cost you want to pay per conversion. The system adjusts bids to meet that target. You don’t set individual bids, but you control how much each conversion should cost.

Pros

• Keeps cost per conversion predictable
• Works automatically after setup
• Saves time on manual bidding
• Helps plan budgets more accurately
• Good for campaigns with clear conversion goals

Cons

• Needs historical conversion data
• Might reduce traffic if the target is too low
• Not ideal for new accounts
• Cannot control individual bids
• May limit high-value opportunities

Best For: Advertisers with fixed budgets who want consistent conversion costs.

Example: Target CPA is $10. The system aims to get conversions close to $10 each.

5. Maximize Conversion Value

This strategy focuses on getting the highest value from conversions. It looks at revenue, not just conversion count. The system spends more on conversions that bring higher sales.

Pros

• Focuses on revenue, not quantity
• Uses the budget efficiently
• Learns which conversions are most valuable
• Works well for stores with multiple product prices
• Reduces wasted spend on low-value conversions

Cons

• Needs conversion value tracking
• Not ideal for new advertisers
• May ignore smaller conversions
• Requires sufficient data to perform well
• Less control over individual bids

Best For: eCommerce stores that want to maximize sales revenue.

Example: A $100 product conversion is prioritized over a $20 conversion.

6. Target ROAS

Target ROAS lets you set a revenue goal for every dollar spent. The system adjusts bids to reach that return. It focuses on profit instead of just conversions.

Pros

• Focuses on revenue and profit
• Automated bidding saves time
• Learns from past data to improve performance
• Helps plan the budget effectively
• Scales well for multiple products

Cons

• Requires historical sales data
• Not suitable for brand-new campaigns
• May reduce traffic if ROAS target is high
• Cannot control individual bids
• Complex setup for beginners

Best For: Stores focused on revenue and return on ad spend.

Example: Goal: earn $5 for every $1 spent. The system adjusts bids to reach that goal.

7. Maximize Clicks

Maximize Clicks aims to get as many clicks as possible within your budget. The system automatically sets bids. It focuses on traffic rather than conversions.

Pros

• Fast traffic growth
• Fully automatic
• Easy to set up
• Uses daily budget efficiently
• Works well for new sites

Cons

• No focus on conversions
• May get low-quality clicks
• Can spend the budget quickly
• Requires monitoring for waste
• Not suitable for revenue-focused campaigns

Best For: New websites, blogs, or campaigns focused on traffic.

Example: The system spends the budget to bring more visitors to your site.

8. Target Impression Share

Target Impression Share focuses on how often your ad appears. You pick the desired visibility, such as top of the pagusesolute top. The system adjusts bids to reach your goal.

Pros

• Improves ad visibility
• Controls where ads appear
• Helps build brand awareness
• Uses automation to save time
• Easy to measure performance

Cons

• Can be expensive
• No focus on conversions
• Requires careful budget management
• Not ideal for small campaigns
• Only measures impressions, not clicks

Best For: Advertisers focusing on brand awareness.

Example: You set an 80% impression share. The system aims to display your ad most of the time.

9. Cost-Per-Thousand Impressions (CPM)

CPM charges you for every 1,000 ad impressions. You pay for views, not clicks. It is mainly used for brand awareness campaigns.

Pros

• Wide audience reach
• Predictable costs
• Good for display campaigns
• Simple to understand
• Helps increase brand recognition

Cons

• No guarantee of clicks or conversions
• May not generate immediate results
• Limited control over performance
• Not suitable for sales-focused campaigns
• Requires careful targeting

Best For: Brand awareness campaigns and display ads.

Example: Your ad appears 1,000 times. You pay the CPM cost.

10. Cost-Per-Thousand Viewable Impressions (vCPM)

vCPM improves CPM by charging only when ads are actually seen. Ads hidden or off-screen are not counted. This technique ensures your money is spent on visible impressions.

Pros

• Focuses on visible ads
• Reduces wasted impressions
• Good for brand awareness
• Easy to measure visibility
• Works well with display campaigns

Cons

• Higher cost than standard CPM
• No clicks or conversions guaranteed
• Not ideal for small budgets
• Requires monitoring for performance
• Limited to direct-response campaigns

Best For: Campaigns focused on visibility and awareness.

Example: You pay only when your ad appears clearly on users’ screens.

11. Cost-Per-View (CPV)

CPV is used mainly for video ads. You pay when someone watches your video for a certain duration or interacts with it. This helps measure real engagement with your content.

Pros

• Pay only for actual views
• Focuses on engagement
• Great for video marketing
• Can increase brand recall
• Works with YouTube or video platforms

Cons

• No guarantee of conversions
• Requires high-quality videos
• Needs tracking to measure ROI
• Not ideal for non-video campaigns
• Can be costly for large audiences

Best For: YouTube ads and video marketing campaigns.

Example: A user watches 30 seconds of your video. That counts as a paid view.

12. Portfolio Bid Strategies

Portfolio bidding lets you apply one strategy to multiple campaigns. The system shares data across campaigns to improve performance. It is useful for large accounts with similar goals.

Pros

• Saves time on managing multiple campaigns
• Learns from multiple campaigns for better results
• Easy to apply one strategy across accounts
• Helps maintain consistent goals
• Works well for scaling campaigns

Cons

• Advanced setup needed
• Not suitable for beginners
• Requires good historical data
• Can be complex to monitor
• Less control over individual campaigns

Best For: Large accounts or multiple campaigns with similar goals.

Example: Three campaigns share a target CPA strategy. The system manages bids for all campaigns together.

Facebook Ads Bidding Strategies – Common Types

After exploring the main bidding types and Google Ads strategies, let’s look at Facebook Ads. Facebook offers several bidding options to help you control costs and get better results. 

Here are the common types:

• Lowest Cost (Automatic Bidding) – Facebook automatically tries to get the most results (clicks, conversions, or leads) for your budget without you setting individual bids.
• Cost Cap – You set a maximum cost per result (like per conversion or lead), and Facebook keeps bids under this cap while trying to get as many results as possible.
• Bid Cap – You set the highest bid you are willing to pay, and Facebook will never pay more than this amount for any result.
• Target Cost (Average Cost) – Facebook aims to keep the cost per result close to a set target, smoothing out fluctuations across your campaign.
• Highest Value – Facebook focuses on getting results that bring the most value or revenue, rather than just the highest number of results.
• Manual Bidding (Legacy Option) – You manually set bids for each result or action, giving you full control over spending.
• Value Optimization – Facebook prioritizes conversions that are likely to bring higher purchase value, helping increase overall revenue.
• ROAS Optimization – Optimizes campaigns to achieve a specific return on ad spend, aiming for the highest revenue relative to your ad spend.

YouTube Ads Bidding Strategies

YouTube Ads use bidding to control how much you pay for video views or impressions. Choosing the right bidding method helps you reach your campaign goals, whether it’s more views, engagement, or conversions.

Popular YouTube Bidding Methods

• Cost Per View (CPV) – You pay when someone watches your video for a certain duration (usually 30 seconds) or interacts with it.
• Cost Per Thousand Impressions (CPM) – You pay for every 1,000 times your ad is shown, regardless of clicks or views.
• Target CPA (Cost per Action) – You pay when someone completes a specific action, like signing up or making a purchase.
• Maximize Conversions – YouTube automatically adjusts bids to get the most conversions from your budget.
• Target ROAS – You aim for a specific return on ad spend, and YouTube adjusts bids to reach it.

When to use CPV or CPM

• CPV – Best for awareness campaigns where you want people to watch your video fully or interact with it.
• CPM – Best for brand awareness campaigns where your goal is to reach as many people as possible.

How to Choose the Right Bidding Strategy

Choosing the right bidding strategy depends on your goals, budget, and experience. Here are some easy ways to decide:

1. Based on Campaign Goal

• Traffic: Use strategies that maximize clicks or impressions.
• Conversions: Choose Maximize Conversions, Target CPA, or Smart Bidding.
• Revenue: Use Target ROAS or Maximize Conversion Value.
• Brand Awareness: Use CPM, vCPM, or Target Impression Share.

2. Based on the Budget

• Small budget: Manual CPC or low-cost strategies work well.
• Medium budget: Smart bidding or enhanced CPC is efficient.
• Large budget: Automated strategies like Maximize Conversions or Target ROAS can scale better.

3. Based on Experience Level

• Beginner: Start with automated or low-cost bidding strategies.
• Intermediate: Use Enhanced CPC or Smart Bidding for better control and results.
• Advanced: Manual bidding or portfolio strategies for full control and optimization.

4. Simple Decision Tips

• Always track conversions before using automated strategies.
• Start small, test, and adjust bids over time.
• Match strategy to your main goal, not just clicks or impressions.
• Use historical data if available; it helps automated strategies perform better.

Wrapping Up 

In this article, we have covered the bidding types in detail, including types of bidding strategies in Google Ads and other platforms like Facebook and YouTube. Choosing the right bidding strategy is key to getting the best results from your ads. 

By understanding the main types – manual, automated, and smart – you can control costs, reach your goals, and improve campaign performance. 

Always match your strategy to your goals, budget, and experience, and test different approaches to see what works best for your business.

FAQs: Bidding Types

Here are some common questions about bidding strategies on Google Ads, Facebook Ads, and other platforms. These answers are simple and easy to understand for beginners.

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