What It Is
A bid strategy is the rule that tells an ad platform how to set bids in the auction every time your ad is eligible to appear. Some bid strategies are manual, where you set a maximum cost per click yourself. Most modern bid strategies are automated, where the platform uses machine learning to bid up or down based on the likelihood that an impression will convert.
Common automated strategies include Target CPA (bid to hit a specific cost per acquisition), Target ROAS (bid to hit a specific return on ad spend), Maximize Conversions, and Maximize Conversion Value.
Why It Matters
The bid strategy you choose defines what your account is optimizing for. The wrong choice can drive clicks that never convert or starve your campaigns of volume. Most underperforming accounts are running the wrong strategy for their stage and tracking setup.
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