How do I optimize bidding strategies

ROI insights

Optimising your bidding strategies is crucial for Australian SMEs wanting to get the most from their advertising spend. It’s not just about paying more or less; it’s about paying the *right* amount, at the *right* time, for the *right* customers. We see many businesses leaving money on the table, or worse, wasting budget on ineffective campaigns, simply because their bidding isn’t aligned with their goals.

The first step is understanding that ‘set and forget’ doesn’t work. The advertising landscape is constantly shifting, influenced by competitor activity, seasonal trends, and changes in customer behaviour. Regularly reviewing and adjusting your bids is essential. We recommend at least monthly reviews, and more frequently during peak seasons or when launching new products.

Here are a few key areas to focus on:

  • Keyword Grouping & Relevance: Ensure your keywords are tightly grouped into relevant ad groups. Broader keywords often attract less qualified traffic, driving up costs. More specific, long-tail keywords generally have lower competition and higher conversion rates.
  • Bid Adjustments: Leverage bid adjustments based on location, time of day, and device. For example, if you know customers in Sydney convert at a higher rate, increase your bids for that region. Similarly, if mobile users are more valuable, adjust accordingly.
  • Automated Bidding Strategies: Platforms like Google Ads offer automated bidding options – Target CPA, Target ROAS, Maximise Conversions. These can be powerful, but require sufficient conversion data to work effectively. Don’t jump in without a solid tracking setup.
  • Quality Score (Google Ads): A high Quality Score lowers your costs and improves your ad position. Focus on ad relevance, landing page experience, and expected click-through rate to improve this metric.

Finally, remember to track your results meticulously. Don’t just look at clicks; focus on conversions and, crucially, the return on investment (ROI) of each campaign. A/B testing different bidding strategies is also vital. What works for one business won’t necessarily work for another. As we look towards 2026 and beyond, data-driven decision-making will become even more important.

To truly optimise your bidding, start with a comprehensive audit of your current campaigns. Identify areas for improvement, implement changes, and continuously monitor your results. If you’re unsure where to begin, consider engaging a specialist to help you develop a tailored bidding strategy that delivers real results.

The bottom line

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