Know About PPC Budgeting and Bidding Strategies

What is PPC Budgeting and Bidding?

Pay Per Click is a payment that a particular company makes & buys to get clicks on their website instead of getting them organically. PPC budgeting is essential for a business. It helps in addressing the expenditure that the business will have in the coming time. It is a crucial decision to be made. Hence, one should know about establishing PPC budgeting and bidding. To estimate PPC budgeting, note the following three points:

Establish a profitability goal

Three questions to know about the expected business that you are thinking of getting:

  • Average Order Value
  • Gross Margin Percentage
  • Cost Per Acquisition

Once these questions are answered, the manager can surely draw their profitability goal. It will ease the process of making a budget for the PPC campaigns.

Identify keyword themes

Before deciding about your budget, do the keyword research so that the later searches will not fail your campaign. It is done beforehand so that the campaign can have a maximum success rate afterward. The manager should never rely solely on it at any time. The COA can exceed, but also maintain a threshold and make profits.

Analyze past performance

Past performances have always been an excellent analyzer to make immediate plans. Thus, look for the previous campaign performance and set the budget accordingly. See if the previous budget did flourish the campaign. Importantly, look for the impression share lost due to low budget metrics under the competitive section in Google Ads.

Let us now look upon the PPC bidding strategies. The following are the three plans which you need to know:

The final price paid per click

The final price per click can be .01% above the advertiser’s ad rank below you. In this case, you can beat the other competitor. The amount you pay per click is noted by the auction that you get in. It includes the auction time competition, ad rank threshold, and the ad’s quality.

Know the Optimal Bid

The bid is generalized through the quality score of keywords. Work on your keywords. The more relevancy you can create, the better the score will be. The bid rank is based on the ad rank, which is dependent on your score. Even if the bid price is low, the advertiser can win the bid through its ad’s position. Apart from that, there is a lot of math involved to get an optimized bid for the budget. So study and analyze it accurately.

Automation of bidding

People are moving towards bidding automation from manual bidding. Managers can manage the day to day bid by automating them. There are seven bidding strategies available with Google AdWords:

  • Maximize clicks
  • Target search page location
  • Target outranking share
  • Enhanced cost-per-click (ECPC)
  • Target CPA
  • Target ROAS (return on ad spend)
  • Maximize conversions


The digital world is a vast pool of tricks and tactics. Sometimes, you run out of budget and increasing it is not an option. So work on the keywords. This will help you finalize the budget and give ease to run your campaign.