Every Biding strategies have its significance in this article you'll read the two most major automated bidding strategies.

  • ·        Maximize Conversion
  • ·        Target Cost Per Acquistion (CPA)


While both of the bidding strategies use machine learning to bid on the keywords. However, both work on differential functionalities and follow different rules they have their method of producing better ROI and conversion rate.


Both of the strategies are distinctive but are equally valuable to get you higher Return of investment and crucial conversions. To start let me give you an idea of what is an automated bidding strategy.


Automated Bidding Strategy


It is a powerful way of managing price you pay for each keyword to be on the first page or at the top of the page without manually bid on them. It's sufficient when you don't have time to manually adjust bid after a day or a week to get your ad on the first page. But it's not the only you should use automated bidding strategy. However,  we'll discuss about it later in the article.


Furthermore, automated strategies need a stable amount of historical data to work efficiently. For example, you have set up a new campaign, and you don't have enough data for clicks and importantly conversions; than it is highly recommended that you avoid using automated strategies, as you need at least 15 to 30 conversions a month at least to test automated bidding strategies.


Also, data requirement varies from strategy to strategy.


Manual bidding Strategy and Automated bidding Strategy


There are two types of bidding strategies.

Automated Bidding Strategies:
  • ·        Target CPA
  • ·        ROAS
  • ·        Max click
  • ·        Max conversion
  • ·        Target Outrank share
  • ·        Enhanced CPC


Manual Bidding Strategy
  • ·        Manual bidding.


Automated bidding strategy is powerful than manual bidding. But why is that?

Automated Bidding uses machine learning to adjust your bid automatically. After evaluating the historical data on conversions, and different aspects of your campaign mostly increases bid value at times when there are high chances of getting a conversion. 


The most important things that automated bidding strategy keep track of are


·        Devices
·        Gender
·        Age Group
·        Days
·        Hours of day.....! and more.


While on the other hand manual bidding is simple and easy to use. You only need to set the bid on each keyword manually very one or two weeks. To conclude, there is no rocket science to it.


However, most advertisers prefer manual bidding because they can have full control over the campaign. It is recommended to use manual bidding if you just set up your campaign. But if you have a sufficient number of data you can and you should test out maximize conversion and Target CPA. Both of them are valuable and can produce some compelling results.


Maximize Conversion


First, let's take about maximize conversion. It is a bidding strategy that produces as many conversations as it can under the range of your daily or monthly budget.


By using campaign historical data and calculating the contextual signals, maximize conversion automatically picks the best cost per click to get conversions. It automatically identifies which position is most beneficial to get many high-range of conversions.


You can test maximize conversion at the beginning when you set up the campaign. However, it is strongly recommended to use manual bidding strategy as maximize conversion needs at least 20 to 30 conversion in last 30 day to work more effectively and efficiently.


If you want to try it out even if you don't have enough conversion, then make sure you are not going limited by budget. If you don't have enough budget to run the campaign don't use it. Because some high grossing keywords are costly, and because of them there are chances that you get fewer clicks each day just because you are going limited by budget.


Target CPA


Target Cpa is also known as Target cost per acquisition. It's is another powerful bidding strategy. Although it also uses machine learning and requires data like maximize conversion. But, it's much better and highly favored by advertisers & google itself.


Every brand has its specific genre some are highly valued and get high conversion rate, and some have a low conversion rate. It is excellent for the class which receives more than 60 conversions in a month, and it won't be unfair to say that to use maximize conversion you need more than 2 or 3 conversions a day to make it work efficiently.


However, if you are running a campaign with a low conversion rate than avoid using Target CPA because highly organized data is crucial for this bidding strategy.


The main functionality of target CPA is to get you as many conversions as possible under your target cost per acquisition.


To try CPA you must calculate the number of conversions you are getting by utilizing an X amount of money. To find out more about target CPA visit this link below.

https://www.youtube.com/results?search_query=target+cpa
  



To conclude if you have a considerable amount of conversions data in the past 30 days, I recommend you to use target CPA as it's going to produce some cool results for your campaign.


But, if you are getting sufficient of conversions (15 to 30) than its better to test out maximize conversions as it'll get you better ROI and produce a good amount of conversions