Google Ads bidding – what is it?

Google Ads is Google’s advertising system. It allows businesses to advertise their products and services by bidding on keywords and making their ads appear in Google’s search results.

Learning how to bid on Google Ads is crucial if you want to get the most out of your paid advertising strategy. If you don’t know what you’re doing, you can end up spending large sums of money while achieving poor results. Here are some Google Ads bidding basics.

What is bidding?

On Google Ads, bidding is the way an advertiser secures clickable ad spaces, allowing their ads to appear in Google’s search results. Advertisers bid on how much they are willing to pay each time a user clicks on their advertisement. This is referred to as pay-per-click (PPC) advertising.


What are keywords?

Keywords are the words and phrases a user enters into a search engine. Advertisers bid on these keywords in hopes that their advertisements will appear when they are searched by a user. For example, if you own a restaurant in Sydney, you might bid on the key term “restaurants in Sydney”.


How does bidding work?

Google’s ad auction is run billions of times each month to provide users with ads that are relevant to them. The position of your ad in this auction is your ad rank, which is calculated by multiplying your maximum bid by your ad quality score. Your actual cost per click will be determined by dividing the rank of the ad directly below by your ad quality score.


What is an ad quality score?

An ad quality score is Google’s way of determining how relevant an advertisement is to a user. It is primarily dependent on your ad’s keyword relevance, CTR and the quality of your landing page. The higher your quality score, the more money you will save and the better your ad ranking will be.


Adjusting your bids

Google Ads allows you to change your bids as often as you like to suit your current goals. You can adjust your bids using one of two strategies: manual or automatic.

An Automated bidding strategy will allow Google to adjust your bids based on past performance, your budget and the strategy you have chosen. You can choose from various bid strategies, including maximising clicks, conversions or conversion value. Automated bid strategies are a good starting point for those who are unfamiliar with paid advertising.

A Manual bidding strategy allows for greater opportunity for results. It lets you choose your own bidding amounts, which gives you more freedom and helps reduce spending.


Bidding on Branded Search Terms

Branded search terms are terms that contain your own business name or the name of your products. It can be difficult to decide whether it is worth bidding on them.

On the one hand, it may be unnecessary. If your organic ranking for those keywords is already good, then bidding on them will be a waste of money.

On the other hand, bidding on terms that relate to your business gives you control. If you don’t bid on your own branded search terms, your competitors might. This will allow them to take up space that should belong to you and appear in results when a user searches for your business.


All in all, it’s up to you

When it comes to Google Ads bidding, it’s all about analysing and adjusting your bids based on previous successes and the needs of your business. It is important to perform regular checks to ensure your relevant keywords are performing well to help you achieve the results you want.

Here at OMDIGI, we have extensive experience in Google Ads bidding. Reach out to our team today and discover more.

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