PPC Bidding Strategies is a PPC campaign optimization technique to get higher number of conversions in less budget. Let me explain that what should be the AdWords bid strategy optimize campaign as best as possible.
Types of PPC Bidding Strategies in Adwords
There are different kind of PPC Bidding strategies in the Adwords like:
- Cost per acquisition
- Impressions based
- CPC based
- Enhanced conversions
- Automated CPC
- return on ads
and some of more but in this article, we are going to discuss CPA (Cost per acquisition) bidding strategies.
Cost per acquisition (CPA)
Cost per acquisition may be of different kinds like download of app, selling of product, getting a lead and so on. CPA means setting a goal for your campaign. PPC is spending on advertising in digital media. Now if you spending in ads and getting return from it then it’s simple calculations which are explained below:
CPC (Cost per click) in AdWords < CPC in AdSense/AdMob but not complete there are some more factors
CPC varies with country and every country has different CPC as per their RPM (Rate per mile) as better will be RPM as higher will be the return.
oh it’s confusing. forget everything let me write the final formula for CPA for ad returning PPC campaigns
AdWord CPA bid = total earning / total daily active users(Organic + paid) for example: Total users are 5000 and daily users are 1000 and earning is 10$ so CPA will be 10/1000 = 0.01 Just 1 cent 😀 Enjoy the game
CPA bid strategy for product PPC on AdWords
CPA strategy for product selling is advised by Google as 10% of the total budget. like your product cost is 50$ then CPA bid will be 5$ which will bring great acquisitions rate and higher impressions.
Same is for services selling that keep CPA bid as 10 to 20% of the total price, now a wise strategy is to include your marketing cost in the price. as your marketing cost goes higher, increase the price of the product. Marketing is the name return and it brings back the cost.
Countries RPM-based CPA bidding:
This is for simple website traffic, applications and games downloads. I have categorized in 4 different regions.
The highest and stable RPM country where CPC range is from 10 cents to 25 cents, further it depends on the conversion type that what is the target to achieve from that user. USA conversion range is 10 cents to 30 cents
2. High tier countries
UK, France, Germany, Belgium, Canada, Australia, Bulgaria, and such other countries are ranking in the high tier countries and they return awesome. CPC bid range is 6 cents to 15 cents and conversion in 8 cents to 20 cents
3. Mid-tier countries
Arab and some Europian countries fall in the mid-range where you get a CPC of 3 cents to 10 cents and conversion from 5 cents to 15 cents
4. Low tier countries
Every digital market must target low tier countries to get a large number of users in less budget. India, Pakistan, Nigeria, Bangladesh, Srilanka, Sudan, Nepal and such other countries are in low counties.
Low tier countries are useful to test your product that users react to your services or product.
Countries tier information is here
How to use CPA Strategies in PPC campaigns
It’s very simple, always create multiple campaigns in Adwords and let it run. Analyze the user data and there will be a great picture on the table what worths.
Hope, you will like it, please share with your colleagues and friends and leave your comment below. Thanks