3 Types of Keyword Bidding Strategies and How to Build One

If you want to maximize your search engine traffic and make sure you’re getting the highest-quality web visits, understanding keyword bidding strategies is essential. But with all the different types out there, how do you know which one is best for your website? Read on to find out!

Types of Keyword Bidding Strategies

They are used by marketers to determine how much money to spend on a keyword, in order to have their ad show in a prominent position when someone enters the keyword into a search engine. Depending on the type of strategy used, the budget, and the bid amount, marketers can increase visibility and have greater control over their advertising endeavors.

The most common types of keyword bidding strategies include:


Cost per Click (CPC) bidding – with this approach, you’re only charged when someone clicks your ad. You will bid what it is worth for you to get one click from someone who searches using your chosen keyword(s). This is beneficial if you want more direct website traffic, as you’re only paying for actual clicks rather than impressions (which may cost more).

Cost per Impression (CPM) bidding – this type of strategy allows your ads to be seen by many people who search using keywords related to your offering without having to pay unless they actually click through and visit your site. It’s great if you want increased visibility but don’t want increased costs associated with bids that may not result in activity.

Optimized CPC (OCPC) Bidding – an OCPC approach uses automated processes that factor in data like device type and user location to optimize what keyword or phrases an ad will show for, or which placements or targeting it should focus on; resulting in higher conversion rates and lower accidental costs associated with tight budgets for specific ads.

Overall, understanding different types can help marketers choose the ideal option for their campaigns. With careful consideration when choosing keywords and planning budget amounts, successful optimization can occur that results in high ROI from targeted campaigns based around specific objectives.

Advantages of Keyword Bidding Strategies


For any business running an online marketing campaign, implementing it is essential in helping to make sure the right customers are seeing the right ads. The keyword bidding strategy that you choose can have a big impact on the success of your advertising budget. It’s important to consider all advantages of keyword bidding strategies before selecting one.

One advantage is that they allow you to customize your marketing efforts by Bid targeting individual keywords and terms. This helps ensure that you are reaching people who are looking for what you have to offer and provides more control than simply setting up a broad ad campaign with generalized ads.

Another advantage of using these strategies is the ability to keep track of ROI (return on investment) more easily than other methods. With this type of strategy, you will be able to determine which keywords are performing better and adjust bids accordingly, so that you can focus your advertising budget on terms that have been proven effective. Additionally, it can help identify any potential negative terms or ineffective terms so they can quickly be removed from campaigns or bids adjusted accordingly.

With many different types of keyword bidding strategies available, businesses should carefully review each one in order to determine which will best meet their objectives. Such research should include:
Analyzing competitive bid history
Identifying metrics such as estimated clicks and ad positions based on budget constraints or desired results
Tracking ROI over time in order to build an effective campaign that delivers the maximum return possible for their advertising investments.

How to Select the Right Keyword Bidding Strategy


Choosing the strategy is crucial for success in a Paid Search campaign. By utilizing the correct keyword bidding strategy, you’ll be able to narrowly target your audience which in turn will bring remarkable returns on both cost and time. When deciding on the most appropriate method, consider both your objectives and campaign’s budget as different strategies have varying levels of associated costs.

Four common keyword bidding strategies include: manual CPC bidding, automated bidding with Enhanced CPC (eCPC), automated bidding with Target CPA (tCPA), and Automated Bidding with Target ROAS (Return On Advertising Spend).

Manual Cost Per Click (CPC) Bidding: With Manual CPC Bidding you bid on each of the keywords separately and manually set the maximum bid value that you are willing to pay per click. This type of tactic is ideal for those looking to gradually increase their bids over time while being able to remain within a relatively low budget.

Enhanced Cost Per Click (eCPC): This type of tactic utilizes Google’s algorithm to adjust and improve bids based on user interactions with your ad content, allowing it to maximize conversion value more quickly than manual CPC.

Target Cost Per Acquisition (tCPA): This method is used when an advertiser has set conversion goals or if budget caps need to be met quickly. Having Google manage bids against a target cost per acquisition or return-on-advertiser-spend is designed only for those who have a steady flow of conversions from their campaigns.

Target Return On Advertising Spend (ROAS): The Target ROAS automated strategy allows advertisers using Google Ads platform control over how much they’re willing to pay for conversions relative to total sales revenue generated by those conversions, instead of relying solely on predetermined maximum bid costs as with all other strategies mentioned above.


In general, each approach comes with its own unique pros and cons which can be weighed against required objectives when determining which strategy best fits needs at hand. Once chosen and implemented, success will depend heavily on influential factors such as competition levels within market space, quality score metrics achieved, ad relevance scores etc., in conjunction how well the particular approach is managed being monitored periodically during its life cycle.


Building a successful keyword bidding strategy requires patience and ongoing analysis to ensure continual progress and measure success. Don’t forget to set clear goals before beginning and review them regularly to ensure you’re getting the most out of your campaigns.

About Sabina Barclay