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Learn These Important Bidding Strategies Google Ads Has To Offer


In the domain of search engine marketing, businesses are presented with an abundance of bidding strategies Google ads may offer; to choose from. The task of identifying the strategy that will deliver the most desirable outcomes becomes a crucial one for those seeking success.

As such, this article will explore the two predominant bidding strategies Google Ads has to offer for paid advertising in search engine marketing. These strategies, namely cost-per-click (CPC) and cost-per-thousand impressions (CPM), each come with their own distinct set of advantages and disadvantages that businesses must weigh up.

Notwithstanding, other less commonly used bidding strategies Google Ads have, such as cost-per-action (CPA) and cost-per-lead (CPL), will also be broached in this article. The careful consideration of each of these strategies and their respective peculiarities will enable businesses to make informed decisions regarding their paid advertising campaigns in search engine marketing.

What is CPC?

Cost-per-click (CPC), facilitates businesses in obtaining visibility by paying for their ads to be displayed on search engine results pages (SERPs) triggered by specific keywords or phrases. The remuneration exacted for each click on an advert varies according to a multitude of factors, primarily dependent on the competitiveness of the keyword or phrase being bid on.

The focal advantage of CPC advertising is the pay-per-click model, ensuring that businesses are charged only when someone clicks on their advert, reducing unnecessary and wasted expenditure. This factor proves to be a highly effective means of generating targeted traffic to a website. However, the downside of CPC advertising cannot be overlooked, as it may prove to be exorbitantly costly, particularly for keywords or phrases that are exceedingly competitive.

bidding strategies google ads

Google CPC pricing plans: Google offers two different CPC pricing plans for businesses to choose from:

The Standard plan charges businesses a set amount for each click on their advert, regardless of the keyword or phrase that they are bidding on. The amount charged depends on the country in which the business is based and the currency that they are using.

The Enhanced CPC plan charges businesses a higher amount for each click on their advert when the keyword or phrase is predicted to result in a conversion (e.g. a sale). This means that businesses have the potential to spend more with this pricing plan, but they are also more likely to see a return on investment (ROI).

Bing CPC pricing plans: Bing offers businesses two different types of CPC pricing plans- standard and accelerated. With the standard CPC plan, businesses only pay when someone clicks on their ad. The accelerated CPC plan is a bit more expensive, but it allows businesses to have their ad displayed more often, which can lead to more clicks and conversions.

What is CPM?

Cost-per-thousand impressions (CPM) is a type of paid advertising that allows businesses to pay for their adverts to be shown on search engine results pages (SERPs) in response to certain keywords or phrases. The amount that businesses pay for every thousand impressions of their advert depends on several factors, including the competitiveness of the keyword or phrase that they are bidding on.

The main benefit of CPM advertising is that businesses only have to pay when someone sees their advert, so there is no wasted spending. This makes it a very effective way of getting exposure for a website. The downside of CPM advertising is that it can be expensive, especially for competitive keywords.

Google CPM pricing plans: Google CPM pricing plan offers businesses to pay a set price for their ad to be shown 1,000, the prices may vary based on the advertiser’s industry, country, and the time of year. For example, during busy holiday shopping periods, prices will be higher than average.

Google Ads vs Bing for Paid Advertising

When it comes to paid advertising, there exist notable dissimilarities between Google Ads and Bing, warranting discussion. One prominent difference is the vastness of their search engine; Google, reigning as the unchallenged behemoth, boasts approximately 65% of the global search engine market share, while Bing, with a mere 20%, pales in comparison. Consequently, the surge of keyword competition on Google engenders skyrocketing cost-per-click (CPC) rates. Bing, in contrast, is less sophisticated than Google in matching ads to searchers’ intent, which leads to a lower click-through rate (CTR).

Another key contrast is Bing’s provision of location-based targeting, a feature unavailable on Google. This grants businesses the ability to restrict their ads to specific countries or states, a boon for local enterprises seeking to appeal to specific demographics.

Furthermore, Bing offers businesses the leverage of negative keywords, permitting the exclusion of certain terms from their campaigns. This facet serves as a valuable tool in preventing the appearance of ads for irrelevant searches and positively impacting click-through rates (CTR) and return on investment (ROI).

Google Ads and Bing Ads (Now partner with Microsoft) serve as the primary paid advertising platforms for businesses. Both exhibit their distinct merits and demerits, and thus require an informed decision on which to employ. If undecided, we recommend initiating with Google AdWords, regarded as the more sophisticated and popular option.

What Are The Other Types Of Paid Advertising?

The sphere of paid advertising is replete with a plethora of options for businesses to choose from, including CPA and CPL advertising strategies. These two strategies, while sharing the common goal of lead generation, differ significantly in their execution and outcomes.

CPA advertising

CPA advertising, for instance, affords businesses the luxury of paying only for each action that users take on their ads, be it clicks, conversions, or leads. By doing so, businesses can ensure that they only spend their budget on ads that yield results, effectively reducing wastage. Albeit, the flip side of this approach is that it can be more expensive than other types of paid advertising. In essence, businesses are paying for each lead or conversion that they generate.

CPL advertising

When it comes to advertising, CPL strategy is custom-built to serve businesses that offer intricate products or services, necessitating a great deal of research and consultation before customers commit to a purchase. This approach allows businesses to pay for leads that are sourced from clicks on their ads, potentially leading to high-quality leads. Nevertheless, the costs of deploying CPL advertising can be quite steep, and businesses need to conduct a comprehensive cost-benefit analysis before diving in. Consequently, strategic allocation of resources and astute audience targeting are crucial elements for businesses to contemplate when considering this type of advertising.

Note: Of CPL vs CPM/CPA, CPL price is significantly higher than the other 2 models, making it less desirable and attractive for small businesses with a limited or low advertising budget.

Which Type Of Paid Advertising Is Best For My Business?

The question at hand, inevitably necessitates an exploration of various factors; foremost among them, the aspirations of your advertising campaign, the financial resources at your disposal, and the level of competition for the keywords or phrases that you intend to bid on.

The varied methods available to accomplish this feat is daunting, to say the least: you may elect to employ Google AdWords, Facebook Ads, Twitter Ads, LinkedIn Ads, or a host of other paid advertising platforms. Alternatively, you could adopt a hybrid approach, blending together various strategies to forge a potent and efficacious paid advertising campaign. However, before we embark upon this ambitious endeavor, it would behoove us to familiarize ourselves with each of these advertising paradigms independently.

#1 Analyzing the goals of your advertising campaign

What lofty aspirations are you attempting to realize? Are you striving to increase the volume of traffic streaming to your website? Or do you aim to amplify your sales figures and generate more leads? Once you have a clear understanding of what you aspire to achieve, you can then begin the arduous process of scrutinizing the varied forms of paid advertising available at your disposal, and deduce which one will be the best suited to your unique business requirements.

#2 Consider your budget

The subsequent stage in this labyrinthine process involves taking into account the monetary resources at your disposal. What sum are you willing to allocate to your paid advertising endeavors? This critical determinant will exert a formidable impact on your ultimate choice of advertising methodology.

A meticulous examination of the various pricing models – CPA, CPM, CPA, or CPL – is in order:

If you find yourself laboring under a financial constraint, then CPC or CPM advertising might be worth considering. These modes of advertising permit you to specify a cap on the maximum amount that you are willing to shell out for every click or every thousand impressions. This can help you regulate your expenses and prevent any inadvertent overspending on your advertising campaign.

On the other hand, if you have an ample budget at your disposal, CPA or CPL advertising may be a viable option. These forms of advertising enable you to remunerate for leads or sales that stem from your advertisement. This can be an efficacious way to expand your business, but it can also prove to be a more costly endeavor. You would be well advised to reflect meticulously on your budgetary constraints and the level of competitiveness of the keywords or phrases that you are vying for before settling on the right advertising strategy for you.

#3 Analyzing the competitiveness of your keywords

The ultimate step in this convoluted decision-making process entails conducting an appraisal of the ferocity of the competition with respect to the keywords or phrases that you are contending for. If you find yourself in the precarious situation of bidding for highly competitive keywords, CPC and CPM advertising can easily put a dent in your wallet. In such a case, it would be prudent to explore other alternatives such as CPA or CPL.

Upon having meticulously scrutinized all of the aforementioned determinants, you should be well on your way to figuring out which form of paid advertising would be best suited to your business requirements. However, if you still find yourself plagued by doubt, it would be advisable to seek counsel from a search engine marketing expert who can provide you with valuable insights on the most appropriate course of action to adopt.


It goes without saying that opting for one of the four potential alternatives is far simpler than having to select from a mind-boggling number of choices. Nonetheless, each of these methods comes with its own unique set of benefits and pitfalls, necessitating a thorough comprehension of which method would be most advantageous for your business.

In order to ensure that you are proceeding in the right direction, the most prudent course of action would be to enlist the services of an agency to do it for you. And if you find yourself in need of assistance to kickstart your journey, look no further than 12 Channels – the premier agency to cater to all your paid advertising requirements. With our accomplished crew of search engine marketing specialists at your disposal, we guarantee that your campaigns will yield remarkable success and that your budget will be utilized optimally. So, what are you waiting for? Contact us today to discover more!

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