The world of digital marketing is awash in misinformation, especially when it comes to and bidding strategies. Sorting fact from fiction is essential for campaign success, but how do you know what to believe?
Myth 1: Manual Bidding Always Outperforms Automated Bidding
The misconception that manual bidding is inherently superior to automated bidding is widespread. Many marketers believe that only human oversight can truly understand the nuances of campaign performance.
But this isn’t always the case. While manual bidding offers granular control, it’s incredibly time-consuming and prone to human error. Modern automated bidding strategies on platforms like Google Ads and Meta Ads Manager use machine learning to analyze vast amounts of data in real-time, adjusting bids based on user behavior, market trends, and campaign goals. You might also find a marketing checklist helpful.
For instance, I had a client last year – a local Atlanta-based bakery, Sweet Stack Creamery, located near the intersection of Peachtree and Piedmont – who was convinced that manual bidding was the only way to achieve a profitable return on ad spend (ROAS). They were meticulously adjusting bids multiple times a day, but their ROAS hovered around 2.5. We convinced them to switch to Target ROAS bidding in Google Ads, setting a target of 4.0. Within two months, their ROAS climbed to 4.2, and their sales increased by 15%. The key? The algorithm could analyze data points far beyond what a human could track, such as the time of day people searched for “ice cream near me” and their proximity to Sweet Stack Creamery.
Myth 2: You Should Always Start with the Lowest Possible Bid
Some marketers believe that starting with the lowest possible bid is the best way to conserve budget and gradually increase bids as needed. The thought process is logical: minimize initial risk and scale up only when performance justifies it.
However, this approach can be detrimental, especially for new campaigns or those targeting competitive keywords. Starting with a low bid often means your ads won’t even show up in search results or on relevant placements. It’s like trying to get into the Varsity on North Avenue at lunchtime; if you don’t push your way in, you’ll never get a foot in the door! You’ll miss out on valuable data and potential conversions, hindering the algorithm’s ability to learn and optimize your campaign. For more on this, see our article on video ads ROI.
A better strategy is to determine a reasonable starting bid based on keyword research, competitor analysis, and estimated conversion rates. Google Ads provides tools like the Keyword Planner to help estimate bid ranges. Don’t be afraid to start a bit higher than the suggested low-end; you can always adjust down if needed.
Myth 3: Broad Match Keywords Are Always a Waste of Money
The assumption that broad match keywords are simply a drain on resources is another common misconception. Many believe they lead to irrelevant traffic and wasted ad spend.
While it’s true that broad match keywords can generate irrelevant impressions if not managed correctly, they can also be a powerful tool for discovering new keywords and expanding your reach. The key is to combine broad match with a robust negative keyword list.
We recently worked with a personal injury law firm located near the Fulton County Superior Court. They initially avoided broad match keywords entirely, fearing they would attract unqualified leads. However, by implementing a carefully curated negative keyword list (including terms like “DIY,” “free legal advice,” and “pro bono”), we were able to use broad match to identify valuable new search terms related to specific types of accidents and injuries covered under O.C.G.A. Section 34-9-1. This resulted in a 20% increase in qualified leads within the first quarter. Understanding your targeting options is key.
Myth 4: You Only Need One Bidding Strategy Per Campaign
The idea that a single bidding strategy can effectively manage an entire campaign, regardless of its complexity, is a dangerous oversimplification.
Different ad groups and keywords within a campaign often require different bidding approaches. For example, brand keywords should typically be managed with a Maximize Clicks or Manual CPC strategy to ensure top placement and protect your brand reputation. Non-brand keywords, on the other hand, may benefit from a Target CPA or Target ROAS strategy to drive conversions at a profitable cost.
Furthermore, your bidding strategy may need to evolve over time as your campaign matures and you gather more data. What works well in the initial stages may not be optimal in the long run. Regularly review your bidding strategies and make adjustments based on performance data.
Myth 5: Once You Set a Bidding Strategy, You Can Forget About It
The idea that setting a bidding strategy is a “set it and forget it” exercise is perhaps the most damaging myth of all.
Bidding strategies, whether manual or automated, require ongoing monitoring and optimization. Market conditions change, competitor activity fluctuates, and user behavior evolves. Failing to adapt your bidding strategy to these changes can lead to wasted ad spend and missed opportunities. Another thing to consider is marketing’s fight for survival in the face of algorithm changes.
Regularly review your key performance indicators (KPIs), such as click-through rate (CTR), conversion rate, cost per acquisition (CPA), and return on ad spend (ROAS). Make adjustments to your bids, targeting, and ad creatives as needed to maintain optimal performance. Don’t be afraid to experiment with different bidding strategies to see what works best for your specific campaign goals.
Myth 6: Bidding Strategies are All That Matter
Sure, picking the right bidding strategy is important. But thinking that’s the only thing that matters is wrong.
High bids won’t save a terrible ad. A strong Quality Score in Google Ads is vital. This includes ad relevance, landing page experience, and expected CTR. If your ads are irrelevant or your landing page is slow and confusing, even the most sophisticated bidding strategy won’t deliver results.
I had a client who insisted on using a “Maximize Conversions” strategy, but their conversion rate was abysmal. After auditing their campaign, we discovered that their landing page was slow, difficult to navigate on mobile devices, and didn’t clearly communicate their value proposition. Once we addressed these issues, their conversion rate skyrocketed, and their “Maximize Conversions” strategy finally started to deliver the desired results.
A bidding strategy is just one piece of the puzzle. You need a solid foundation of relevant keywords, compelling ad creatives, and a user-friendly landing page to truly succeed.
You need to understand that bidding strategies are not magic bullets. They’re tools that, when used correctly, can help you achieve your marketing goals. But they require ongoing monitoring, optimization, and a willingness to adapt to the ever-changing digital .
What’s the difference between CPA and ROAS bidding?
CPA (Cost Per Acquisition) bidding focuses on getting conversions at a specific cost. You tell the platform what you’re willing to pay for a conversion, and it adjusts bids to achieve that goal. ROAS (Return on Ad Spend) bidding focuses on generating a specific return for every dollar spent on advertising. You tell the platform what ROAS you’re targeting, and it adjusts bids to maximize that return. ROAS bidding requires conversion tracking with revenue values.
How often should I adjust my bids?
There’s no one-size-fits-all answer. For manual bidding, you might adjust bids daily or weekly based on performance data. For automated bidding, the platform handles most of the adjustments, but you should still monitor performance regularly (at least weekly) and make adjustments to your target CPA or ROAS as needed.
What are negative keywords, and why are they important?
Negative keywords prevent your ads from showing for irrelevant search queries. They are crucial for refining your targeting and preventing wasted ad spend. For example, if you’re selling “running shoes,” you might add “dress shoes” and “sandals” as negative keywords.
How does Quality Score affect my bidding strategy?
Quality Score is a metric used by Google Ads to assess the relevance and quality of your ads and landing pages. A higher Quality Score can lead to lower costs and better ad positions. Improving your Quality Score can make your bidding strategy more effective.
What’s the best bidding strategy for a new campaign?
For a new campaign, a good starting point is often Maximize Clicks or Manual CPC. These strategies allow you to gather data and understand how your keywords are performing. Once you have enough conversion data, you can switch to a more performance-based strategy like Target CPA or Target ROAS.
While mastery of and bidding strategies is vital for success, it’s even more important to focus on the user experience. Make sure your website loads fast, your ads are relevant, and your offers are compelling. That’s where real, sustainable growth happens.
