The 2025 Guide to Google Ads Bid Strategies

The 2025 Guide to Google Ads Bid Strategies

When it comes to running successful Google Ads campaigns, having the right bidding strategy is just as important as choosing the right keywords, audience, and ad creatives.

Whether you’re looking to maximize conversions, control costs, or dominate the search results, the right bid strategies for Google Ads can make or break your campaign.

But with so many Google Ads bidding strategies available, how do you know which one is best for your business?

In this guide, we’ll break down the different types of Google Ads bid strategies, their pros and cons, and how to optimize your bidding to maximize your ROI in 2025.

Understanding Google Ads Bid Strategies

What Is a Bidding Strategy in Google Ads?

In Google Ads, a bid strategy determines how much you’re willing to pay when a user clicks on your ad or takes a specific action. Google’s system automatically competes in the ad auction on your behalf, depending on the bidding method you choose.

Types of Bid Strategies in Google Ads

Google Ads offers two main categories of bidding strategies:

  1. Manual Bidding – You set your own bids and adjust them as needed.
  2. Automated Bidding – Google adjusts bids automatically to optimize performance.

Both have their advantages and drawbacks, which we’ll explore below.

Best Bidding Strategies for Google Ads & When to use Them

Best Bidding Strategies for Google Ads

1. Manual CPC (Cost-Per-Click) – Best for Control Freaks

How It Works:

  • You set your max CPC bid for each keyword.
  • You can increase or decrease bids manually based on performance.

Pros:

  • Full control over how much you bid per click
  • Avoid overpaying for low-performing keywords
  • Great for experienced, hands-on PPC managers

Cons:

  • Time-consuming and requires constant monitoring
  • No AI optimization

Best For:

2. Enhanced CPC (ECPC) – Best for a Hybrid Approach

How It Works:

  • You set manual bids, but Google adjusts them slightly to increase conversions.
  • Google raises bids when a user is more likely to convert.

Pros:

  • Offers some automation while maintaining manual control
  • Helps optimize conversions

Cons:

  • Still requires manual monitoring
  • No full AI automation

Best For:

  • Advertisers who trust AI but want control
  • Conservative marketing campaigns where scaling isn’t a priority

3. Maximize Clicks – Best for Driving Traffic

How It Works:

  • Google automatically sets bids to get the most clicks within your budget.
  • Works great for campaigns focused on brand awareness or website visits.

Pros:

  • Great for high-traffic campaigns
  • Fully automated

Cons:

  • May bring low-quality clicks that don’t convert
  • No focus on conversion value

Best For:

  • Websites that need more traffic
  • Brand awareness campaigns

4. Target CPA (Cost-Per-Acquisition) – Best for Cost-Efficient Conversions

How It Works:

  • Google adjusts bids to get conversions at your target CPA.
  • E.g. If you set a CPA of $10, Google aims to get conversions at or below $10.

Pros:

  • Helps maintain a fixed cost per lead
  • Saves time with AI-driven optimization

Cons:

  • Requires historical conversion data to work well (around 30 conversions per month is a good starting point)
  • May limit ad visibility if CPA is set too low

Best For:

  • Lead generation campaigns
  • B2B Google Ads management

5. Maximize Conversions – Best for Fast Growth

How It Works:

  • Google sets bids to get the most conversions possible within your budget.
  • AI makes adjustments in real time to prioritize conversions.

Pros:

  • Ideal for businesses looking to scale quickly
  • Uses AI to optimize performance

Cons:

  • Can lead to higher CPCs if not monitored
  • Requires conversion tracking to function effectively

Best For:

  • Advertisers with aggressive growth targets
  • Businesses with flexible budgets

6. Target ROAS (Return on Ad Spend) – Best for Ecommerce Advertisers to Maximize Revenue

How It Works:

  • Google sets bids to achieve a specific ROAS goal.
  • If you set a ROAS goal of 500%, Google aims to return $5 for every $1 spent.

Pros:

Cons:

  • Requires strong historical data
  • Can limit ad reach if ROAS is set too high

Best For:

  • Ecommerce businesses
  • High-margin products or services

7. Target Impression Share – Best for Dominating the SERPs

How It Works:

  • Google adjusts bids to get your ads seen more often.
  • You can set where your ad appears (top of page, absolute top, or anywhere).

Pros:

  • Ideal for brand visibility
  • Helps you outbid competitors

Cons:

  • Not focused on conversions or ROI
  • Can lead to higher ad costs

Best For:

  • Industry-specific Google Ads campaigns
  • Brand awareness goals

Choosing the Best Google Ads Bidding Strategy for Your Goals

GoalBest Bidding Strategy
Brand AwarenessTarget Impression Share, Maximize Clicks
Traffic GrowthMaximize Clicks
Lead GenerationTarget CPA, Maximize Conversions
Ecommerce SalesTarget ROAS, Maximize Conversions
Budget ControlManual CPC, Enhanced CPC
High CompetitionTarget Impression Share, Target ROAS

Best Practices for Google Ads Bidding Strategies

1. Start with CPC-Focused Strategies Before Optimizing for Conversions

If you’re new to Google Ads, start with Manual CPC or Maximize Clicks with a CPC cap to get an idea of costs and performance.

2. Use Smart Bidding with Caution

Google’s automated bidding is powerful but needs historical data to work effectively. Aim for around 30 conversions per month before testing these bid strategies.

3. Continuously Optimize Your Bidding Strategy

No single strategy is set and forget—always analyze and adjust.

4. A/B Test Different Strategies

Run small test campaigns with different bidding strategies to compare performance. Google ads experiments can help you split test with confidence.

5. Monitor Key Google Ads Metrics

Track CTR, conversion rates, CPC, and ROAS to make informed bidding adjustments.

Final Thoughts

Finding the right bid strategy in Google Ads requires strategy, testing, and ongoing optimization. Whether you’re focused on lead generation, ecommerce sales, or brand awareness, the right bid strategy is crucial. You’ll likely use a mix of different bid strategies across your campaigns, depending on your ad objective, and what stage of the funnel you’re focusing on.

Want expert help optimizing your Google Ads bidding strategy? Work with a Google Ads agency like Velocity to maximize ad ROI and scale your campaigns effectively.

Get in touch today, we’d love to chat.