What are bidding strategies?

Bidding strategies are a central element in online advertising campaigns, especially with Google Ads and other pay-per-click(PPC) platforms. They determine how much you are willing to pay for each click, impression or conversion. Depending on your goals and budget, you can choose between different bidding strategies to maximize the effectiveness of your campaigns.

Types of bidding strategies

3 Example of bidding strategies:

Cost per click (CPC)

With this bidding strategy, you pay a certain amount for every click on your ad. This strategy is well suited if you want to increase traffic to your website and are willing to pay for each visitor.

Tip: Quickly calculate the CPC? Use our free CPC calculator.

Cost per Mille (CPM)

Here you pay a fixed amount for a thousand impressions of your ad. This strategy is well suited if you want to increase the visibility of your brand and consider the number of impressions to be an important goal.

Quickly calculate the CPC? Use our free CPM calculator.

Cost per acquisition (CPA) / costs per lead (CPL)

This strategy is based on how much you are willing to pay for each conversion. For example, a conversion can be a purchase, a registration or a download. This strategy is particularly effective if you are targeting conversions directly and want to align your marketing spend with the value of each individual conversion.

Our tip for this too: calculate free of charge with our CPA calculator.

Choosing the right bidding strategy

Choosing the right bidding strategy depends on various factors, including your goals, your budget and the nature of your campaign. Before deciding on a bidding strategy, you should clearly define your goals and ensure that the strategy you choose best supports those goals. It is also important to regularly monitor the performance of your campaigns and make adjustments where necessary to achieve optimal performance.

Oh yes, and… Don’t forget A/B tests

In the world of digital marketing, it is crucial to use effective strategies to reduce advertising costs while maximizing conversions. A proven way to achieve this goal is the A/B test. Efficiently reduce advertising costs with:

• A/B tests

In this example, the landing page to which your new leads are sent via ads. Don’t forget, this must also be conversion-optimized.

What does advertising on Google cost?

The cost of a Google Ads ad that goes to 100,000 people can vary greatly and depends on several factors, including the level of competition in your industry, the bidding strategy you choose, the quality of your ad and the relevance of your keywords. Typically, Google Ads pays for ads either per click (CPC), per impression (CPM) or per conversion (CPA).

In general, the more profitable the industry, the higher the competition, the more expensive:

• Little competition: 1-4 Euro
• Medium competition: 5-9 Euro
• High competition: 10+ Euro

For a rough estimate: If we assume an average CPC of 10 euros, you would pay around 10,000 euros for 100,000 people to see your ad. However, this amount can vary depending on the factors mentioned.

• Advertising costs: 10,000 euros
• CPC: 10 Euro
• People reached: 100,000 euros

Costs money, brings advantages

5 advantages of Google Ads (and other PPC platforms):

1. Reach: Reach a large target group
2. Flexibility: Adjust your ads and budgets flexibly
3. Measurability: Track and analyze the success of your campaigns
4. Targeting accuracy: Targeted ads to relevant users
5. Fast results: Immediate visibility and potential customer contacts

Bidding strategies maximize your ROI

Bidding strategies play a crucial role in online marketing and can have a significant impact on the success of your campaigns. By choosing the right bidding strategy for your goals and budget and continuously monitoring and optimizing it, you can effectively achieve your marketing goals and maximize your ROI.

How would I describe remarketing?

Remarketing is a targeted strategy to reach out to potential customers who have already shown interest in your product or service but may not have converted so far. This strategy is based on the concept that people who have already visited your website or been in contact with your brand are more likely to become customers if they are approached again.

1. Targeted approach of potential customers with an interest in the product/service
2. Use of website visit data to increase the conversion rate
3. Increased willingness to buy through renewed appeal and presence of the brand

In principle, remarketing works like this: users are registered and targeted again, depending on which part of the sales process they are/were in. Here as “RT AD”(re-targeting advertising display).

Why does remarketing work so well?

Here are 6 reasons why people who have already shown interest are more likely to become customers:

1. Familiarity with the brand
2. Reminder of the product
3. Trust and credibility
4. Adaptation to specific interests
5. Offer of special offers or discounts
6. Reminder of unfinished actions

Familiarity with the brand

People who have already visited your website are familiar with your brand, which increases the likelihood that they will return and buy.

Reminder of the product

Remarketing ads remind potential customers that they were interested in your product or service, which can spark their interest again.

Trust and credibility

Through continuous presence and repeated contact, you can strengthen potential customers’ trust in your brand and products, which increases their willingness to buy.

Adaptation to specific interests

Remarketing ads can be tailored based on users’ previous behavior and interests, which increases the relevance of the ads and the likelihood of a purchase.

Offer of special offers or discounts

Targeted remarketing campaigns can be used to present special offers or discounts to encourage potential customers to complete the purchase.

Reminder of unfinished actions

People who have started a certain action, such as filling out a contact form or adding a product to the shopping cart, can be reminded of this action again by remarketing and encouraged to complete it.

Step by step to conversion.

How does remarketing work?

Remarketing usually works via cookies or similar tracking methods that make it possible to identify users who have visited your website. You can then present targeted ads to these users when they visit other websites on the internet, use social media or use search engines. These ads can be specifically tailored to the interests and behavior of users and encourage them to visit your website again and perform a desired action, such as making a purchase or signing up for your newsletter.

• Identification of website visitors via cookies or tracking
• Targeted ad placement on other websites and platforms
• Adaptation of ads to users’ interests and behavior to encourage repeat website visits and actions

Higher conversion: improve the ROI of campaigns

Through remarketing, you can improve the conversion rate and ROI (tip: ROI calculator) of your marketing campaigns as you are sending your message to people who have already shown a certain affinity with your brand. It is an effective way to guide potential customers through the sales funnel and ensure that no valuable leads are lost.

A-/B-Test: The basics of strategy

Before we look at the specific applications of A/B testing (or split testing), let’s take a look at the basics. An A/B test, also known as split testing, is a method in which two or more variants of a web page, ad or other element are created and tested simultaneously to determine which variant produces the best results. One variant (A) is used as a control group, while the other variant (B) has one or more changes that are to be tested.

A/B test in social media ads

Social media ads are an important part of many marketing strategies. By using A/B testing, advertisers can find out which ad combinations achieve the best results. This can include the selection of images, texts, target groups or ad formats. By testing different variations, companies can optimize their advertising spend and improve their conversion rates.

What do agencies like us test in social ads?

• Ad texts: Test different ad texts to find out which one achieves the highest click-through rate
• Keywords: Vary your keywords and check which ones deliver the best results in terms of relevance and conversion
• Bidding strategies: Test different bidding strategies (e.g. CPC [Costs per Click], CPA [Cost per Acquisition]) and find out which delivers the best results in terms of costs and conversion rate

Perfect for TikTok Ads, Facebook Ads, Instagram Ads and Google Ads.

Simply play out 10 graphics to 10 target groups, each with 10 different texts.

• 10 x 10 x 10 = 1,000 different ads (simply put)

This will help you find the ads that really bring you sales.

A/B test for Google Ads

Similar to social media ads, Google Ads can also benefit from A/B testing. Companies can test different ad texts, keywords or bidding strategies to find out which combination achieves the best results in the online store. Through continuous testing and optimization, advertisers can ensure that their ads are placed as effectively as possible in the search results and that their advertising costs are minimized.

What do agencies like us test in social ads?

• Ad texts: Test different ad texts to find out which one achieves the highest click-through rate
• Keywords: Vary your keywords and check which ones deliver the best results in terms of relevance and conversion
• Bidding strategies: Test different bidding strategies (e.g. CPC, CPA) and find out which delivers the best results in terms of costs and conversion rate

A/B test on landing pages

The landing page is often the decisive factor that determines whether a customer converts or not. With A/B testing, companies can test various elements of their landing pages, such as headlines, call-to-action buttons, forms or the layout. By optimizing these elements, companies can improve their conversion rates and increase the effectiveness of their marketing campaigns.

What do agencies like us test landing pages for?

• Headlines: Test different headlines to find out which one attracts visitors’ attention best
• Call-to-action (CTA): Vary the text and placement of the CTA button to maximize the conversion rate
• Forms: Test different form fields and their arrangement to increase the number of completed forms

Quite simply:

• Change colors
• Change texts
• Change layout
• … and test and compare them against each other!

Reduce CPC with testing

Overall, A/B testing is an extremely effective way to improve the performance of marketing campaigns and reduce advertising costs. By continuously testing and optimizing different variations, companies can ensure that their marketing budgets are being used optimally and maximum results are achieved. Reduce CPCs, CPLs and improve ROI with this strategy!

By the way, you might also be interested in this:

Bidding strategies in online marketing

Google Ads, PPC, maximize your ROI! In online marketing, choosing the right bidding strategy is crucial to the success of a campaign. Bidding strategies determine how much you pay for clicks, impressions or conversions in your advertising campaigns and can have a significant impact on your return on investment (ROI).

• Bidding strategies in online marketing