One of the most common questions we hear from clients new to paid advertising is — “what is bidding strategy in Google Ads, and which one should I use?”
Your bidding strategy determines how much you’re willing to pay for ad clicks or conversions and directly influences your campaign’s visibility and performance. In simple terms, it’s the mechanism that decides when and where your ad appears in Google’s auction system.
At Microlevel Solutions, we’ve helped over 100 businesses optimize their Google Ads bidding strategies, often reducing cost per acquisition (CPA) by 20–30% within the first few months through smarter automation and testing.
Understanding What a Bidding Strategy Is
Every Google Ads campaign runs on an auction system. When a user searches for something relevant to your business, Google decides which ads to display — based not only on ad quality but also on how much advertisers are willing to bid.
Your bidding strategy tells Google how to use your budget. It aligns your spending with your business goals — whether you want to drive clicks, conversions, or visibility.
For example, if your goal is to generate more website visits, you might use “Maximize Clicks.” If your goal is to increase leads or sales, you’d use “Target CPA” or “Target ROAS.”
The right bidding strategy ensures your money goes toward actions that bring real value to your business.
Types of Google Ads Bidding Strategies
Google offers several bidding options — both manual and automated — to suit different goals. Let’s explore the key types:
- Manual CPC (Cost Per Click):
You control how much you bid per click. This is best for advertisers who want full control but requires active management. - Maximize Clicks:
An automated strategy where Google aims to get the most clicks possible within your set budget. Ideal for new campaigns focused on traffic generation. - Target CPA (Cost Per Acquisition):
Google automatically sets bids to help you get as many conversions as possible at your chosen target cost per acquisition.
Example: A healthcare client set a CPA target of ₹500 per lead. Within a month, we optimized conversions while maintaining CPA under ₹460 — a 9% improvement. - Target ROAS (Return on Ad Spend):
Optimizes bids to maximize conversion value at a specific return percentage.
Example: An eCommerce client with a 400% ROAS target achieved 4.6x return after refining ad placements and negative keywords. - Maximize Conversions:
Google uses machine learning to get the most conversions within your budget. Great for campaigns with strong historical data. - Target Impression Share:
Focuses on brand visibility by showing your ad at the top of search results for specific queries.
Choosing the right one depends on what stage your campaign and data maturity are at.
How to Choose the Right Bidding Strategy
Here’s a simple way to decide:
| Goal | Recommended Strategy |
|---|---|
| Increase website traffic | Maximize Clicks |
| Generate leads or sign-ups | Target CPA |
| Drive online sales | Target ROAS or Maximize Conversions |
| Build brand awareness | Target Impression Share |
At Microlevel Solutions, we analyze campaign data, conversion patterns, and competition level to fine-tune the bidding strategy that fits your business goals best.
Why Bidding Strategy Matters
- Controls Cost Efficiency: The right bidding approach ensures every rupee delivers measurable ROI.
- Improves Ad Positioning: Better bids can help you appear higher on search results.
- Supports Campaign Goals: Whether you want awareness or conversions, your bid strategy directs performance.
- Enhances Smart Learning: Google’s algorithms rely on data — consistent strategy helps AI optimize over time.
According to Google’s 2024 Ads Performance Report, campaigns that use automated smart bidding achieve an average of 20% higher conversion rates than those managed manually.
Common Mistakes to Avoid
- Switching Strategies Too Often: Each change resets Google’s learning phase.
- Setting Unrealistic CPA or ROAS Targets: Too tight goals can limit impressions and conversions.
- Ignoring Data History: Automated bidding performs best when at least 30–50 conversions exist in the last month.
- Focusing Solely on Clicks: High CTR doesn’t always mean quality conversions.
Our Google Ads Experts ensure every campaign follows data-backed optimization cycles to maintain balance between cost and performance.
Example from Microlevel Solutions
A B2B SaaS client was struggling with inconsistent lead flow. Their campaigns ran on manual CPC, averaging ₹180 per click.
After switching to Target CPA bidding, we restructured their campaigns, refined keywords, and added negative terms. Within 45 days, CPA dropped to ₹520 from ₹680, and lead quality improved significantly.
This case underscores that a well-chosen bidding strategy doesn’t just reduce cost — it enhances efficiency and lead quality simultaneously.
Conclusion
Curious which bidding strategy in Google Ads fits your business goals best?
Choosing the right bidding approach can make the difference between wasted ad spend and scalable success.
At Microlevel Solutions, our Google Ads specialists use real-time data, AI insights, and continuous testing to help businesses maximize ROI through smart bidding.