Using the wrong bid strategies in Google Ads can have a negative impact on your advertising campaign performance. The main consequence is that you may end up paying more for clicks or conversions than you should, leading to wasted budget and lower return on investment (ROI).
For example, if you use a manual CPC bid strategy instead of an automated bidding strategy such as target CPA or target ROAS, you may end up paying more for clicks than necessary. This is because manual CPC bidding requires you to set the maximum amount you are willing to pay for each click, regardless of whether that click is likely to convert into a sale or not. On the other hand, automated bidding strategies use machine learning to adjust bids in real-time based on a variety of signals such as user location, device, time of day, and more, to help you reach your advertising goals more efficiently.
Another consequence of using the wrong bid strategies is that you may not be able to achieve your advertising goals, such as generating enough clicks or conversions within your budget. For example, if you use a target impression share bid strategy instead of a target CPA or target ROAS strategy, you may end up spending your entire budget on low-quality clicks or impressions, without generating any significant return on investment.
Moreover, using the wrong bid strategies may result in poor ad placement, as your ads may not appear in front of the right audience or at the right time. This can lead to lower click-through rates (CTR) and conversion rates, and ultimately, lower revenue.
In summary, it is crucial to choose the right bid strategy for your advertising campaign goals and budget. You should consider factors such as your business objectives, target audience, competition, and historical campaign performance data when selecting a bid strategy. It is also important to regularly monitor and adjust your bids based on performance metrics such as cost-per-click (CPC), cost-per-acquisition (CPA), conversion rate, and ROI, to ensure that you are maximizing the effectiveness of your advertising campaign.
