Everyone loves an auction. Whether it’s the quiet contemplation of the silent auction or the excitement of the live auction with its split second, win-or-lose decisions, the auction lends excitement to the acquisition of … well … just about anything, including the acquisition of advertising space.
AdWords runs an auction each and every time it has ad space available. And it’s each auction that determines which AdWords ads will display in that space. Your bid is what puts you in the auction and the action.
There are several ways to bid for your ads. Most people focus on clicks, impressions, or conversions. Let’s take a look at each one.
Focusing on Clicks – This is a great strategy if your aim is to bring visitors to your website. And as we mentioned in a previous blog, if you use cost-per-click bidding (CPC), you only pay when someone actually clicks on your ad. When it comes to CPC bidding, you have two choices: Automatic Bidding and Manual Bidding. With Automatic bidding, you simply set a daily budget and AdWords will adjust your CPC bids to bring you clicks while working within your budget. With Manual Bidding, you take control by setting bids for the clicks that mean the most to you. For example, you may want to bid more heavily for direct-hit keywords that best describe your service, and less for broader keywords that relate, but not as closely.
Focusing on Impressions – This is an alternative to paying by click. If your campaign is targeting just the Display Network, you can pay by the number of times your ad is shown, rather than per click. It’s called cost-per-thousand viewable impressions (vCPM) bidding because you pay for every 1,000 times your ad appears.
Focusing on Conversions – This is an advanced bidding method that you control by determining how much you’ll pay for a conversion. As we mentioned in a previous blog, a conversion is getting a user to take the action you want them to take, like clicking on a call-to-action link, filling out a form, making a purchase, and so on. Although you pay for each click, your bids will be automatically set for you so that you can get as many conversions as possible for the budget amount you determined.
Here at Brickworks, we can help you get the best bang for your buck. Talk to us anytime about the best options to make your advertising strategy work for you. It’s just what we do.