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.