Goal
To determine the right bid strategy and optimize the cost and performance of your shopping campaign
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SOP-217
Bidding Strategies For Google Shopping Campaigns
Determine the right bidding strategy and optimize the cost and performance of your shopping campaign
Type
SOPs · PDF
Execution time
10 – 20 minutes
Last updated
31 January 2025
Who does this
Digital marketers or advertising professionals who are experienced in using the Google Ads platform
Length
16 pages
Ideal outcome
The key is to find the best bidding strategy for your business and continually monitor and adjust it as necessary to achieve the best possible results
Why it matters
Bidding strategies are crucial to efficiently spend money based on your selling products and your available capital. Bidding too low can mean your ads are not delivered and bidding too high can be a losing business model. When you have all the different campaigns prepared, the optimal bidding strategy will help you achieve your objective campaign
Before you start
Before using this SOP, you need to: • Set up a Google Merchant Center Next (SOP 213 – web version) • Set up a Google Ads account (SOP 014 – web version) • Link Google Merchant Center Next with Google Ads (SOP 219 – web version) • Prepare your Google Merchant Center Next feeds (SOP 218 – web version) • Claim and verify your website on your Google Merchant Center Next (SOP 214 – web version) • Set up shopping campaigns in your Google Merchant Center Next (SOP 216 – web version)
Key steps 29 steps
What is inside 40 headings
1 Google Ads Bidding: How It Works and Strategies for Success
2 How Google Ads Bidding Works
3 Types of Google Ads Bidding Strategies
4 Best Practices for Google Ads Bidding
5 Where to set up and edit bidding for your Google shopping campaigns in Google Ads 13
- Sign in to your Google Ads account here.
- Choose the appropriate Gmail account and log in with your password. Click “Next”.
- On the left navigation menu, click on the + create button and select “Campaigns”.
- Next, select “Create a campaign without a goal's guidance” when choosing the objective for the campaign.
- Select “Shopping” as your campaign type. At this stage, ensure that your Google Merchant Center Next has been linked with your Google Ads account (refer to SOP 219: web version).
- For new users, selecting the “Performance Max campaign” for Google is recommended to automate your bidding strategy. For users who want to pick their bid strategy, go for the “Standard shopping campaign”. Name the campaign and hit “Continue” to proceed.
- Next, look for the “Bidding” section and place your bids there.
- Alternatively, if you already have existing campaigns, go to “Campaigns” > "Campaigns" on your left navigation menu and click on the created campaign title.
- Next, click “Campaign settings” (top right).
- Under "Budget and bidding", click on the bidding drop-down arrow.
- From here, you can adjust your bid strategy for your existing campaigns.
- Lastly, you can view your bid strategy report under “Campaigns”. Click on a type of bid strategy to reveal the report.
- Make sure to change the date range in the right corner of the screen so you can view your bid strategy report.
6 Strategy 1: Smart Shopping or Performance Max (Automated by Google) 4
- Choose "Performance Max" under the campaign subtype. If you have a specific performance goal, add a target return on ad spend (ROAS). The campaign will use it once it has enough conversion data.
- Select a bid strategy in the drop-down menu. This includes either getting clicks, impressions, conversions, or views.
- [Recommended] Add a targeted ROAS. To calculate your ROAS and campaign profitability, go to Template 067: Google shopping campaign profit calculator (web version).
- If you're bidding for new customers only, make sure to tick the box under "Customer acquisition". From here, you'll need to click "Define existing customer list" by adding audience segments.
7 Strategy 2: Target ROAS 2
- Choose “Performance Max” under the campaign subtype. Add a target return on ad spend (ROAS) under “Bidding”.
- Add a targeted ROAS. To calculate your ROAS and campaign profitability, go to Template 067: Google shopping campaign profit calculator (web version).
8 Strategy 3: Maximize clicks for brand awareness or new campaigns 2
- Choose "Performance Max” under the campaign subtype.
- Under “Bidding”, select “Maximize clicks” in the drop-down menu and set a maximum cost-per-click bid limit.
9 Strategy 4: Maximize Conversions 2
- Choose "Performance Max" under the campaign subtype.
- Select “Maximize conversion” in the drop-down menu.
10 Strategy 5: Manual CPC 2
- Choose “Performance Max” under the campaign subtype.
- Select “Manual CPC” under the drop-down menu.
11 Strategy 6: Manual CPC (Enhanced) 4
- Choose “Performance Max” under the campaign subtype.
- Select “Manual CPC” from the drop-down menu.
- Tick the box to activate “Enhanced CPC” (ECPC).
- Select “Optimize Conversion Value” for Maximum Revenue Generation.
The document 16 pages
The file is locked
It comes with the SOP Library.
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