Most companies steer clear of PPC ads since they assume that there is no need of spending a dime on digital marketing when there are many ‘’free’’ marketing platforms. What they do not appreciate is the ROI they stand to make from PPC marketing. This does not, however, mean that high ROI is a guarantee on this marketing platform. There are different elements which should work in harmony to guarantee your business handsome returns.
Getting the right bid strategy is one of the elements that digital marketing companies in Los Angeles will focus on to maximize the returns from your investment. Placing ad bids is not just a matter of your budget and paying as much as you can. If the bid is too high, you will burn your budget quickly. If it is too low, you will get a few ad impressions.
The following are the types of bid strategies which might work for your PPC ad:
Target Search Page Location
You can customize your ad to target a placement on the first page of SERPs or the number one position on the pages. AdWords will raise the bid price of your ad to increase the chances of getting your desired ad position. Though common, target search page location gives you have minimal control over how high the bid can go. This might hurt the ad’s performance if you cannot reach the set bid to gain your desired position.
In this strategy, you will enter the cost-per-acquisition (CPA) of your ad. AdWords will then change your bids to achieve your desired CPA. There are various types of historical conversion data you will use to get your target CPA. This bidding strategy will however not give you a considerable insight into different PPC ad algorithms that should help in the achievement of your target CPA.
An ad’s return on ad spend (ROAS) works in much the same way as the target CPA. You will enter your ROAS and then bid to hit the target. In theory, target ROAS is perfect for an automated strategy because it gets you actual ROI for your marketing investment. You will, however, need a lot of comparative data for your campaign, and this might make the cost of your ad higher than that of a target CPA bid strategy.
Target Outranking Share
This strategy allows a company to choose a competitor’s domain then outbid it. When using this strategy, you will set your maximum bid, and a 0% outrank timeframe so that the ad will not burn your finances too quickly. Target outranking share is best used when trying to outdo a competitor, but it might raise your bid’s price when used for a long time.
The above bidding strategies will be a crucial factor in how much you will spend in your PPC ad and how much you stand to make in return. With the right approach, you can get high profits for the lowest possible ad bid. Investing in PPC marketing without an expert’s input is the primary mistake that costs companies millions annually. To guarantee returns for your company, work with the best PPC marketing expert available.