Bid strategy in digital advertising refers to the method you choose to control how much you are willing to pay for clicks, impressions, or conversions. Platforms like Google Ads or Meta Ads provide different bidding strategies to match different goals. Manual bidding allows you to set specific bids yourself, while automated strategies adjust bids in real time using machine learning.
Common strategies include cost-per-click bidding, where you pay for each click, and cost-per-thousand impressions, where you pay for visibility. More advanced strategies aim for cost-per-acquisition or maximize conversions within a set budget. Choosing the right approach depends on campaign objectives. If brand awareness is the goal, impression-based bidding may be best. If sales are the priority, conversion-focused bidding often works better.
A good bid strategy adapts over time. Testing is essential, as competition, audience size, and seasonality affect costs. Automated strategies can save time and improve efficiency, but they require accurate conversion tracking to perform well. Ultimately, bid strategy is about balancing cost with outcome, making sure every dollar spent brings the greatest possible value.
« Back to Glossary Index