How to Create an Effective Bidding Strategy for Your Google Ads Campaign

Creating high-quality, targeted ads is an essential step to launching a successful Google Ads campaign. Equally important, however, is setting the right maximum cost-per-click bid for your ads. Ad clicks can cost anywhere from 10 cents to $50. If you bid to too low, you’ll fail to attract clicks and generate traffic. If you bid too high, on the other hand, you may struggle to turn a profit.
The competitive nature of Google Ads often results in two or more advertisers continuously raising their bids in an attempt to achieve and maintain a top Ad Rank. Known as a bidding war, it’s a costly tactic that inflates click costs and drives down profits for advertisers.
When an advertiser has the highest Ad Rank, for example, another advertiser vying for the same digital real estate may raise his or her bids. After discovering a competitor has taken their Ad Rank, the original advertiser may raise his or her bids, resulting in an endless back-and-forth bidding exchange.