18 Types of Bidding Strategies: Automated, Manual & Smart

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Bidding strategies are an important way to make your advertising performance more effective in terms of pricing. However, there are still many people who don't understand how this bidding strategy works.

If you are one of the many entrepreneurs who don't understand the types and benefits of using Google Ads bidding strategies, let's discuss several types of Google Ads bidding strategies that are often used by business people in this article!

What is a Marketing Strategy?

Before learning more about various marketing strategies, you need to know the definition of marketing strategy or often also called marketing strategy.

Marketing strategy is the overall effort of a business to reach target customers who are considered prospective, then convert them into permanent customers for a business's services and products.

Apart from marketing strategy or marketing strategy, you can also come across the term marketing plan. What's the difference? A marketing plan is part of a marketing strategy that includes detailed marketing activity documents and contains a schedule of marketing initiatives that will be implemented.

Ideally, marketing strategies should be long-term compared to marketing plans. This is because a marketing strategy covers the big picture of the message you want to convey, while a marketing plan describes the detailed needs to implement the existing strategy.

In order to choose the most effective marketing strategy, a company must look at the most important aspects that support its business. Certain products may need to be marketed conventionally, but there are also products that are more effective when promoted digitally.

What are the Types of Smart Bidding Strategy?

6 Types of Bidding Strategies and Their Benefits in Advertising

A bidding strategy is a facility for creating content. And web pages on the first page position have the most potential for visitors to click.

To advertise on this largest search engine platform, you need to understand how your audience uses keywords. For example, when you sell medical devices, you need to know what keywords visitors use.

1. Maximize Clicks Bidding Strategy

This bidding strategy is carried out automatically and based on your daily budget. So, maximizing Maximize Clicks means you allow Google Ads to serve ads to audiences who are likely to click on your ads, regardless of their intent.

This bidding strategy is often misinterpreted as getting as many closes as possible, with the assumption that the more people who come, the more people will buy.

However, in reality, not everyone who visits has the intention to buy. Therefore, this strategy is not suitable for advertising with the aim of obtaining conversions. However, this strategy will be the right choice if you have a limited budget. Or keywords with a limited number of monthly searches in your ongoing advertising campaign.

Apart from that, this strategy is suitable if used for awareness purposes, where you can get visitor data and can read further information on the website. After that, you can do Remarketing or Retargeting on the next campaign.

2. Enhanced CPC (ECPC)

Enhanced CPC is a derivative strategy from Manual CPC, where this strategy is a combination of Manual & Smart Bidding. Google will increase or decrease the amount of your bid based on the possibility of achieving the desired goal, but within specified limits.

Enhanced CPC is very suitable for controlling CPC (Cost Per Click) metrics because you can set a maximum limit on the budget spent. However, in general this strategy is less effective, especially for follow-up campaigns. Remember that you have to control it manually, when there are many campaigns.

3. Maximize Conversions

Maximize Conversions is an advanced bidding strategy for Maximize Clicks, and it's also very easy. Google will focus its entire unlimited budget on getting as many conversions as possible.

This strategy is very suitable for obtaining maximum potential from the average acquisition cost. But it's important to note that even if you get 0 conversions, Google will continue to spend your budget until you stop.

This is one of the weaknesses of the Maximize Conversions strategy. Where you need to pay attention to your ad configuration so that your budget is not wasted.

Before implementing this strategy, make sure your daily budget is sufficient. At the end of the campaign, you can calculate the ROI (Return on Investment) to determine whether the strategy implemented using Maximize Conversions was profitable or not.

4. Target CPA (Cost Per Action)

If the previous strategy is useful for getting as many conversions as possible, then Target CPA functions to get conversions within a certain limit. The CPA target is filled in with the nominal acquisition cost desired by the advertiser.

For example, CPA is filled in $1, then Google will provide compensation so that the average cost per conversion obtained does not exceed $1. In advanced campaigns, target CPA is the type of bidding strategy most often used to optimize conversions.

Target CPA is only effective if the advertisement displayed already knows the maximum potential value of acquisition costs. If your CPA setting is too low, there is a risk that your ad will not appear.

5. Target ROAS (Return On Ad Spend)

If Target CPA allows you to get as many conversions as possible within a certain acquisition cost limit, then the Target ROAS function is to get the largest conversion value according to the ROAS value determined in percentage.

In 2021. Google made changes by integrating this bidding strategy into the Maximize Conversion Value strategy.

6. Target CPM/Viewable CPM

Lastly is Target CPM, which is a bidding strategy that allows you to set a limit on the fees paid for every 1,000 ad impressions viewed. You can use target CPM in Awareness campaigns like TV ads.

Where you want your ad to be seen by as many people as possible within a certain cost limit. CPM targeting is only available on visual-based campaigns such as Google Display Network or YouTube Ads..

7. Paid advertising

In paid advertising, companies pay advertising space providers so they can display their products in that space. The price paid is usually determined through negotiations between the marketer and the advertising space provider.

Paid advertising consists of several categories, including display or banner advertising, pay-per-impression (PPI), and pay-per-click (PPC). This method is very effective for companies that want to show their name to a wide audience.

8. Transactional marketing

One of the biggest challenges faced by even the largest companies is meeting sales targets. However, the existence of a transactional marketing strategy turns out to be quite effective in overcoming this problem.

Companies that use this strategy are able to attract consumers through shopping coupons, discounts, promotions and big events. Finally, consumers are interested in buying more products offered.

9. Social media marketing

Currently, more than 2.8 billion people actively use social media. Social media marketing is also easy to use, cost effective, and can target many targets so this strategy can be implemented by various companies.

Social media marketing focuses on the use of social networking sites or applications such as Facebook, Instagram, and the like. Considering the scope is so broad, companies can build a brand quickly.

10. Interactive marketing

Interactive marketing strategies involve consumer participation in the marketing process itself. For example, companies can include consumer names or other customizations on limited edition products.

This method allows consumers to get the latest information about a product or service. That way, consumer demand for the product or service will increase.

11. Content marketing

The next type of marketing strategy is content marketing. This strategy focuses on creating and distributing valuable, relevant and consistent content to attract consumers.

Instead of making direct offers, companies actually provide consumers with the information they need so that they are interested in a product.

Marketing through content can be applied by small and large companies. So that the content created is of high quality and able to attract consumer interest, companies must have competent content creators.

12. Search Engine Optimization (SEO)

SEO is the process of getting traffic from organic, editorial or free search results on search engines. This strategy is closely related to content marketing, and even determines whether a piece of content can be said to be quality.

Content that meets SEO will occupy the top position in search results.

If the content increases rapidly, the company will get high traffic. This can increase brand awareness so that the number of consumers also increases.

13. Earned media (public relations)

Earned media is publications that can be obtained in various ways that tend to be easy, such as; social media testimonials, word of mouth or what can be called word of mouth, talking about products via television or radio, and so on.

What you need to underline is that earned media is media that is obtained for free or organically. Therefore, earned media can also be called "free media".

14. Inbound marketing

Inbound marketing is a business strategy to attract consumers by creating valuable content and experiences tailored to consumers.

The method of inbound marketing is to develop a business by building long-term relationships with consumers, potential consumers and customers. So, a product and service will continue to be with consumers throughout their journey.

For inbound marketing strategies, the message conveyed to consumers is very important because it must be relevant and appropriate. Unlike marketing strategies which tend to be boring and annoying to consumers.

15. Telemarketing

This type of marketing strategy may be familiar to you, however, telemarketing is still considered effective by several companies.

This marketing uses direct marketing methods where a salesperson offers products or services via telephone or web conference according to an agreement with potential customers.

Examples of telemarketing marketing strategies are offering credit cards to customers, or when telecommunications company telemarketers offer postpaid sim card services.

16. Email Marketing

Email marketing is a procedure carried out by marketers to achieve marketing goals by sending email advertising to several customers or audiences who are business targets.

Even though it is considered effective, you have to pay attention to the right strategy in doing email marketing. The reason is, with unattractive titles and content, as well as sending too often, your marketing emails will not be opened, end up in spam or even be immediately deleted by the target audience.

There are various types of email marketing commonly used in marketing strategies such as email newsletters, press release emails, and transactional emails.

17. Referral program

Maybe you have often heard of this marketing strategy or have used it. The referral program is a strategy that really requires the role of consumers and potential consumers. Namely, by encouraging them to tell people around them about certain products or services.

Many large companies have successfully applied this marketing strategy, such as the accommodation rental company, Airbnb. This startup company succeeded in increasing the number of bookings by 25% and continued to increase up to 300% in application version 2.0.

18. Conversational marketing

As the name suggests, conversational marketing is a marketing strategy that relies on conversations. Conversations take place in real time through various media such as chatbots or live chat.

With this strategy, consumers or potential consumers can directly get the information they want, ask questions and make transactions quickly.

Conversational marketing will be very effective, especially for B2C businesses, because it will improve the quality of a business's customer service and can also keep consumers in the purchasing flow.

What are the Benefits of Advertising Using a Bidding Strategy?

What are the Benefits of Advertising Using a Bidding Strategy?

A bidding strategy is something that many people really need. Because it has several benefits such as:

1. Increase Awareness

The first benefit is that you can increase awareness which is the key to the success of your business. Without awareness, you will have difficulty getting potential customers.

2. Optimization of Audience Intent

The second benefit is advertising using this strategy. You will be able to optimize and adjust the intentions of your potential audience. By knowing the right keywords, you can find out what your potential audience is after. For example, you can find out whether your audience wants to buy, tutorials, reviews, or just information.

3. Reduce fish budget so that it is more efficient

The third benefit you will get is that you can reduce your fish budget so it is more efficient. Because by implementing the right strategy, you can get the best advertising without having to spend a bigger budget.

So the benefits you will get are very large. Compared to not using any advertising strategy.

4. Get Fast Ad Results

The next benefit is that you can get faster results from advertising, of course by optimizing the keywords used. As discussed previously, choosing the right keywords can make potential audiences visit your business website.

This will certainly be very profitable for you as a business owner. This gives you the opportunity to earn more money. Plus, almost everyone uses Google every day.

5. Implement a Remarketing Strategy

The final benefit that you can experience as a business owner who advertises using this bidding strategy is Remarketing. This strategy means you, as a business owner, can return to your previous audience.

Not only will you get new audiences, but your old audiences will repeat their orders or what is called repeat orders. As technology advances in the digital world, so do the bidding strategies used by entrepreneurs that develop rapidly.


Remember that not all selected bidding strategies will match your different Campaign Goals. By understanding each bidding strategy in Google Ads.

You can develop more effective and accurate advertising strategies to maximize your chances of success. That is our explanation of the 6 types of bidding strategies and their benefits in advertising that can be conveyed.

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