Choosing the right bid strategy is often the difference between a Google Ads campaign that prints money and one that just drains your bank account. In the Brisbane market, where competition for local services can be fierce, understanding how to tell Google exactly what you're willing to pay for a lead is vital.
Why Bidding Strategies Matter
Most business owners think they just need to 'set a budget', but the bid strategy is the engine under the hood. It tells Google's AI whether you want the most clicks possible, the most phone calls, or the highest return on every dollar spent. If you get this wrong, you might get thousands of visitors who have zero intention of actually buying from you.---
Prerequisites: What You’ll Need Before Starting
Before we dive into the interface, make sure you have the following ready:- An active Google Ads account: Set up with your ABN and billing details.
- Conversion Tracking: This is non-negotiable. If you aren't tracking when someone calls you or fills out a form, automated bidding won't work.
- A Clear Goal: Know whether you want brand awareness, website traffic, or (most likely) leads and sales.
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Step 1: Understand the Two Main Categories
Before clicking any buttons, you need to understand that Google splits bidding into two camps: Manual and Automated (Smart Bidding).- Manual CPC: You decide exactly how much you’ll pay for a click. It gives you total control but requires you to check in constantly.
- Smart Bidding: You give Google a goal (like a $50 lead), and its machine learning adjusts your bids in real-time based on millions of signals (location, time of day, device, etc.).
Step 2: Navigate to Your Campaign Settings
Log in to your Google Ads dashboard. On the left-hand sidebar (the dark grey one), click on Campaigns.Select the specific campaign you want to adjust. Once inside the campaign, look for the Settings tab in the secondary light-grey menu.
Screenshot Description: You should see a list of settings like 'Status', 'Goal', and 'Bidding'. Click on the row that says Bidding to expand the options.Step 3: Select Your Primary Goal
When you click 'Change bid strategy', Google will ask: "What do you want to focus on?"Don't let the dropdown menu intimidate you. This is where most people get stuck because the options sound similar. Here is the breakdown for a typical Aussie business:
- Conversions: Choose this if you want leads (calls/forms). This uses Maximize Conversions.
- Conversion Value: Choose this if you're running an e-commerce store and want to focus on the dollar amount of sales. This uses Maximize Conversion Value.
- Clicks: Choose this if you just want traffic. (Honestly, we rarely recommend this for local service businesses).
- Impression Share: Choose this if you want to make sure you always appear at the very top of the page, perhaps to outshine a specific competitor in your suburb.
Step 4: Setting a 'Target CPA' (The Sweet Spot)
If you select Maximize Conversions, you'll see a checkbox that says "Set a target cost per action (optional)". This is the most important checkbox in your account.By ticking this, you tell Google: "I want as many leads as possible, but I don't want to pay more than $X per lead."
Real observation: If you set this too low (e.g., $2 for a plumber in Brisbane), Google simply won't show your ads because it knows it can't get a lead that cheaply. Start with what Google suggests, or look at your historical data. You can always tighten the screws later.Step 5: Implementing 'Maximize Conversion Value' for E-commerce
If you sell products online, you don't just want sales; you want profitable sales.Select Maximize Conversion Value and tick the box for Target ROAS (Return on Ad Spend). You enter this as a percentage. For example, if you want $5 back for every $1 spent, your Target ROAS is 500%.
Warning: Don't be greedy here. If you've been getting a 300% return, don't suddenly set it to 1000%. The AI will panic, stop finding customers, and your traffic will drop off a cliff. Incremental changes of 10-20% every few weeks are much safer.Step 6: Using 'Maximize Clicks' for Brand Awareness
Sometimes, you just want to get the word out. Maybe you've opened a new cafe in West End and just want people to see your menu.Select Maximize Clicks.
Pro tip: Always set a "Maximum CPC bid limit." If you don't, Google might occasionally pay $15 for a single click just because it can. Capping this at $2 or $3 ensures your budget lasts the whole day.Step 7: The 'Learning Phase' - The Hardest Part
Once you hit Save, you'll see a status next to your campaign that says "Learning".This is where most business owners lose their nerve. During the Learning Phase (usually 7 days), performance can be erratic. You might see high costs and no leads.
Reassurance: Resist the urge to change it back! Every time you change a bid strategy, the clock resets. Give the AI at least 7 to 14 days to find its rhythm. It’s annoying, but it’s how the system works.Step 8: Reviewing and Optimising
After two weeks, check your 'Bid Strategy Report'.You can find this by clicking on the bid strategy name in the 'Bidding' column of your campaign view. Look for the blue line (your target) vs. the actual performance.
If your actual CPA is much higher than your target, it's time to look at your landing page. Google is getting the clicks, but your website isn't 'closing the deal'.
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Common Mistakes to Avoid
- Switching too often: Changing your strategy every 3 days is the fastest way to kill a campaign. The AI needs stability.
- Setting unrealistic targets: Don't set a $10 Target CPA if the Brisbane industry average is $60. You'll simply go 'dark' on the search results.
- Ignoring 'Enhanced CPC': This is a halfway house between manual and auto. It’s often better to just commit to a fully automated strategy once you have 15+ conversions per month.
- No conversion values: For e-commerce, if you don't tell Google how much a sale was worth, it treats a $10 sale the same as a $1,000 sale.
Troubleshooting
"My ads have stopped running entirely!" This usually happens after switching to Target CPA or Target ROAS. Your target is likely too restrictive. Try increasing your Target CPA by 50% to 'loosen' the algorithm and get the ads moving again. "I'm getting clicks but no conversions." This isn't necessarily a bidding problem; it's a tracking or a landing page problem. Check if your 'Thank You' page tracking is broken. If you're an Aussie sole trader, try calling your own tracking number to make sure it works. "The interface looks different to your description." Google loves a 'refresh'. If you can't find 'Settings', look for a gear icon or a 'More Details' chevron. The terminology stays mostly the same even if the buttons move.---
Next Steps
Now that your bidding is sorted, you should focus on your Ad Copy. No bid strategy can save a boring ad.- Review your headlines to ensure they mention your local Brisbane service area.
- Check your 'Search Terms' report to see what people are actually typing to trigger your ads.
- If this all feels a bit overwhelming (and it is, we do this for a living!), feel free to reach out to us at https://lmgroup.au/contact for a quick audit of your current setup.
Mastering bid strategies takes patience, but once you find the 'Goldilocks' zone for your business, you can finally stop hovering over the 'Pause' button and let the leads roll in.