Bid Strategy
Definition
A bid strategy is a method used in digital advertising to determine how much an advertiser is willing to pay for a specific action, such as a click, impression, or conversion. It guides how your budget is spent across campaigns and helps achieve specific marketing goals, whether that’s driving traffic, generating leads, or maximising return on ad spend (ROAS).
Why It Matters
Choosing the correct bid strategy is important because it directly impacts how efficiently your budget is spent and how your campaigns are performing. The best approach is to ensure your ads reach their target audience and avoid wasted spend. You can do this to influence important matters such as brand awareness, engagement, and conversions.
Example
Take a SaaS company promoting free trial sign-ups through Google Ads. Instead of manually tweaking bids for every keyword, they use a Target CPA (Cost Per Acquisition) strategy. Google’s algorithm then adjusts bids automatically to secure as many sign-ups as possible at a set cost, helping the company scale results without the time sink of constant manual adjustments. Just be sure to fine-tune your targeting so that your bids generate relevant leads.
Additional Insights
Bid strategies generally fall into two categories: manual or automated. Manual bidding gives advertisers more control but requires close monitoring, while automated strategies use machine learning to optimise for specific goals like clicks, conversions, or return on ad spend (ROAS). Platforms such as Google Ads and Meta Ads offer multiple options, such as Maximise Conversions, Enhanced CPC, or Target ROAS, to match different campaign objectives. Because performance can shift due to factors like competition, seasonality, or audience behaviour, ongoing monitoring and fine-tuning are key to maintaining efficiency.
Bottom Line
The right bid strategy is a foundation of effective digital advertising. By choosing an approach that aligns with your goals and keeping it optimised, businesses can stretch their budgets further, capture more meaningful results, and ultimately drive measurable growth. A well-planned bidding strategy ensures every ad dollar is working harder, supporting both short-term wins and long-term marketing success.
