Google Adwords is an advertising service produced by Google to let users advertise their products or service on Google Network or partner websites.
This will lead to increase in selected objectives such as (1) increase website traffic (2) increase brand awareness (3) increase lead conversion
Google Adwords has many selections on its bidding strategy. As a user, you need to choose the correct strategy to gain the maximum benefits out of Google Adwords, and to save costs.
Wrong bidding strategy does not help companies in the long term and causes monetary loss with little ROI. Therefore it is highly recommended to select the correct bidding strategy method.
Google Adwords has three distinct types of bidding strategy:
- Cost-per-click (CPC)
- Cost-per-thousand viewable impression (vCPM)
- Cost-per-acquisition (CPA)
Cost-per-click (CPC) is typically used when you want to drive traffic to your website. This bidding strategy is typically used by beginners since it is most recognizable. However, it is a mistake to assume that CPC will work for your adwords campaign if your primary objective is not to drive traffic to your website.
Cost-per-thousand viewable impression (vCPM): This bidding strategy is to increase awareness for your brand. This strategy is suitable if you want to expose your brand to your target groups as much as possible, or to build momentum and traction for an event.
Cost-per-acquisition (CPA): This bidding strategy works for lead conversion, or you are looking for a specific action on your landing page, or website such as sign-up to an e-newsletter, purchase or quote inquiry.
It is important to recognize these different types of bidding strategy in order to select the right ad campaign for your company.
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