What are the basic types of bidding strategies in PPC campaigns

PPC bidding strategies fall into two basic categories: manual bidding, where you set bid amounts yourself, and automated bidding, where the ad platform adjusts bids using machine learning. Within these, the core strategies are manual CPC, enhanced CPC, target CPA, target ROAS, maximize clicks, and maximize conversions—each tied to a specific campaign goal.

Manual vs Automated Bidding

Every PPC bidding strategy in platforms like Google Ads and Microsoft Advertising rolls up into one of two buckets. Most teams get this wrong by jumping straight to automation before they have enough conversion data to feed the algorithm.

• Manual bidding — You control the maximum bid for each keyword or ad group. Best for small accounts, tight budgets, or campaigns where you need granular control.
• Automated bidding — The platform sets bids in real time based on signals like device, location, time of day, and historical conversion likelihood. Needs volume (typically 15–30+ conversions per month) to perform well.

The Core Bidding Strategies

1. Manual CPC (Cost-Per-Click)

You set the maximum amount you'll pay per click at the keyword or ad-group level. This gives you full control and is the cheapest entry point for new campaigns. The downside: it doesn't react to live auction signals, so you'll spend more time managing bids manually.

2. Enhanced CPC (eCPC)

A hybrid strategy. You set manual bids, but the platform raises or lowers them automatically for auctions it predicts are more or less likely to convert. It's a useful bridge between manual control and full automation.

3. Maximize Clicks

An automated strategy that gets you the most clicks possible within your budget. Good for driving traffic when brand awareness or top-of-funnel volume matters more than conversions. You can set a maximum CPC bid limit to avoid overspending.

4. Maximize Conversions

The platform spends your full budget to get the most conversions. There's no target cost-per-action—it simply optimizes for conversion volume. Works well when you want to use your entire budget and have reliable conversion tracking in place.

5. Target CPA (Cost-Per-Acquisition)

You tell the platform what you're willing to pay for a conversion, and it sets bids to hit that average. This is a Smart Bidding strategy, part of Google's automated bidding suite, and it relies on conversion data to predict outcomes.

6. Target ROAS (Return On Ad Spend)

You set a target return—say, $5 in revenue for every $1 spent—and the algorithm bids to hit it. Best for ecommerce and lead-gen accounts that track conversion values, not just conversion counts.

Quick Comparison Table