Bid Management for Audience Targeting in Google Ads

Google Ads allows you to target different kind of audiences, in a Search Only Campaign, in two modes, 1) Targeting 2) Observation, I will discuss here the second kind of setting only, because first kind is dedicated to the targeting of the kind of targeted audience only.

There are three kind of scenarios emerging out of three kind of bid strategy: 1) No bid changes, only audiences are added. 2) If there are three audiences viz, A, B & C, in the order of importance giving incremental bid like 10%, 20% and 30% respectively. 3) Again if there are 3 audiences just like the previous, assigning bids in reverse order choosing decremental order like -30%, -20% and -10%. Now let us compare outcome of the three: In Scenario:1 Traffic through A, B & C will be governeed by the Default Bid and over a period of time you can allot a bit of incremental factor depending upon your analysis.

In Scenario: 2 All the audiences chosen will attract incremental bid over default and you would be bidding lower for the traffic which has not been marked by Google as belonging to a particular audience. So, you would be attracting more people on your website who has already been to many websites like yours before.

In Scenario:3 All the audiences chosen will get lesser than default and hence you are bidding higher for the traffic which has yet not been marked by google. It means you are spending more for the people who are fresh into market.

Now compare this with the real life situatrion where X,Y and Z all goes to the market looking for a product. X has the propensity to close sale in one or two shot, while Y in 5 shots aand z will keep bargaining the whole day.

Being a seller chances of sale happening is higher for X then Y and then Z. Scenario 3 gives you the best setting where you spend more for X and less for Y and Z, while though counterintuitive Scenario: 2 you are spending more for Z types and less for X and Y. You will lag behind competitors.

The more the no of sites a visitor visits less likely he is to buy. If a person visits 10 websites than sales probability is only 10%, I would strongly advise you to go for Scenario:3 kind of bid strategy for good results. Always bid more for Untagged traffic than marked audiences.