A bid in PPC refers to the maximum amount an advertiser is willing to pay for a user to click their ad. It acts as a signal in the auction system, helping determine whether your ad will show, in what position, and how much you’ll ultimately pay. These are based on competition and quality factors.
Key Components of Bid Strategy:
- Max CPC( cost per click)
- Auction type ( Choosing the bid strategy )
- Budget alignment
Use Case:
A brand sets a $2.00 bid for “t-shirts” to ensure strong ad placement on Google. Effective bidding balances cost with visibility and campaign goals. Target ROAS: Aiming for a specific return on ad spend.
