Flexible bid strategies allows you to automatically adjust bids in pursuit of a particular goal for one or more keywords in your account. For instance, you can choose a flexible bid strategy that aims to “maximize clicks” for one keyword, while choosing another flexible bid strategy to always aim for position number one on the page. The nice thing about flexible bid strategies is that you can use them selectively, which means you can choose a flexible bid strategy for one keyword, while retaining manual bidding control over other keywords.
Here are five interesting types of flexible bid strategies:
- Maximize clicks: this bid strategy aims to maximize the number of clicks you receive for a particular keyword, and is a good option for companies whose top priority is total traffic volume.
- Target search page location: this bid strategy adjusts bid prices to appear in a specific spot on the search engine results page, and it is commonly used by companies that want to appear in the number one spot for a group of keywords.
- Target outranking share: this bid strategy automatically adjusts bids to help you outrank your competitor’s ads. This is very powerful if you have a one primary competitor who you care about outranking. It is interesting to note that if two companies are both using this bid strategy, they will each see bid prices rise until one of them hits their maximum bid limit, but at the end of the day, the highest bidder is not guaranteed top position, because quality score is still an important factor in ad rank.
- Target cost-per-acquisition (CPA): this bid strategy sets bids to help you maximize the number of conversions without exceeding the cost-per-acquisition that you define. This is great for companies who know exactly how much money they make from each sale, and who can therefore calculate how much they can spend to “acquire” customers.
- Target return on ad spend (ROAS): this bid strategy automatically adjusts bids to maximize conversion value, which is helpful to companies that sell a variety of different products at different price points. This bid strategy allows you to optimize with the knowledge that conversion type A may generate $400 in revenue, while conversion type B may only generate $50 in revenue.