When launching new lead generation campaigns, one of the most common questions is what Google Ads bidding strategy to use. There are several options, and the best choice depends on your specific goals and circumstances. In this article I’ll review a few different scenarios that will help guide you in making this important decision.

Avoid the Max Clicks Trap

While many advertisers default to Max Clicks bidding with the aim of getting as many clicks as possible, this approach has some drawbacks.

Google will prioritize getting you the most clicks, which often means bidding on lower-value queries that are less likely to convert. Google tends to focus on a few keywords in your ad groups, spending most of your budget on those and neglecting other potentially valuable keywords.

These issues can delay your ability to gather enough conversion data to switch to more effective automated bidding strategies like CPA or Max Conversions.

Starting with Manual CPC

For new campaigns, especially in accounts with low conversion volume, I recommend starting with manual CPC bidding. I used to recommend ECPC (Enhanced Cost Per Click) but Google has recently depreciated it.

Why manual CPC?

Manual CPC provides flexibility by allowing you to adjust individual keyword bids. With manual bidding you can focus your investment on queries that are more likely to convert, even as you’re ramping up your campaign. And, you can ensure your budget is spread out more evenly on a wider range of keywords.

Also, if you don’t achieve the initial conversion volume you’re hoping for you can refine your bids and set bid adjustments across different dimensions such as devices, locations, audiences, and ad schedules.

Transitioning to Automated Bidding

Once your campaign generates sufficient conversion data, has run for a couple of weeks and is averaging at least 10 conversions per month, you can transition to automated bidding strategies like tCPA or Max Conversions.

As for which to choose:

When selecting Max Conversions bidding, Google will spend all of your budget (notwithstanding other issues) while generating as many conversions as possible. Using this option you should see fairly consistent spending and conversion volume, but your CPA may vary a lot with changes in supply and demand.

When selecting tCPA bidding, Google will attempt to generate as many conversions as possible at your target CPA. Usually this is used on conjunction with an open budget, in which case you should expect that your ad spend and conversion volume will vary quite a bit with changes in supply and demand. Importantly, if/when Google is able to spend your entire budget it’ll behave like Max Conversions bidding, and you’ll likely see a CPA that’s lower than your target.

google ads bidding strategy

One thing to keep in mind with tCPA bidding is to ensure your target is achievable. If it’s not you’ll very likely see spending decline over time and eventually your campaign may stop running completely.

For more details I breakdown all the Google Ads bidding methods in this article.

Starting with Automated Bidding

In some cases it’s perfectly fine to start a new campaign immediately with tCPA or Max Conversions bidding.

You can launch with automated bidding if:

  • You have existing campaigns with a lot of conversion data that Google can leverage, and/or
  • You expect the new campaign to quickly achieve solid conversion volume, at least a couple of conversions per day

Why Not Max Conversion Value or tROAS Bidding?

Sure, if you plan to track variable values per conversion or track multiple conversion goals that each have different default values, using value-based bidding will make more sense. But that’s still exceptional for most lead-gen advertisers.

Summary

Choosing the right Google Ads bidding strategy for new campaigns is crucial for maximizing performance and achieving your conversion goals. While the temptation to go for Max Clicks is understandable, starting with manual CPC offers greater control and better prepares your campaign for a successful transition to automated bidding later on.

However, automated bidding has come a long way. If you are confident you’ll be able to immediately generate a few conversions a day you can start with tCPA or Max Conversions bidding.

For more, check out this video on what bidding option to choose for new campaigns.