Everything You Need to Know About Google Ads Bidding Strategies in 2025
- Fretchie Gay Monterde
- Mar 4
- 11 min read
Quick Links
Key Takeaways
Choosing the right Google Ads bidding strategy can significantly impact your cost per lead and return on ad spend (ROAS).
Start with manual CPC if you don’t have historical conversion data.
Once you have at least 15-20 good leads in 30-45 days, smart bidding (like Max Conversions) becomes a viable option.
Manual CPC often outperforms Max Conversions for brand campaigns.
Proper conversion tracking is essential to ensure accurate bidding optimization.
Service businesses (home services, legal, healthcare, etc.) should focus primarily on Search Ads and, in some cases, Local Service Ads.
Introduction: Why Google Ads Bidding Strategies Matter
Google Ads bidding strategies are one of the most critical elements of a successful PPC campaign. Choosing the right bidding method can mean the difference between generating high-quality leads at an affordable cost or wasting ad spend on unqualified clicks. But with so many bidding strategies available in 2025, how do you know which one is right for your business?
If you run a service business—whether it’s an HVAC company, law firm, or medical practice—your primary goal with Google Ads is lead generation. You want phone calls, form submissions, and booked appointments, not just clicks. That’s why it’s essential to pick the right bidding strategy that aligns with your goals.
This guide will walk you through everything you need to know about Google Ads bidding strategies in 2025, from understanding different bid types to choosing the best one for your campaigns. We’ll also share real-world insights from managing Google Ads for service businesses to help you make smarter bidding decisions.
Understanding Google Ads Bidding Strategies
Google Ads offers several different bidding strategies, each designed to optimize for specific outcomes.
Here’s a breakdown of the most common ones and how they work:
1. Manual CPC (Cost-Per-Click)
Best for: New campaigns with no conversion data, businesses that want full control over bidding.
With Manual CPC, you set the maximum amount you’re willing to pay per click. This strategy gives you complete control over how much you bid on each keyword and allows you to prioritize high-intent search terms.
Pros:
Full control over your bids.
Works well for brand campaigns.
Allows for strategic bid adjustments based on performance.
Cons:
Requires hands-on management.
Doesn’t leverage Google’s automated learning for bid adjustments.
2. Enhanced CPC (ECPC)
Best for: Businesses that want some automation but still want manual bid control.
ECPC is a hybrid approach that allows Google to adjust your manual bids based on the likelihood of conversion. If Google’s algorithm predicts a searcher is more likely to convert, it may increase your bid. If a searcher is less likely to convert, Google may lower the bid.
Pros:
Still maintains manual control while using Google’s machine learning.
Can improve conversion rates without fully switching to automated bidding.
Cons:
Less predictable than pure manual bidding.
Can increase CPCs if not monitored properly.
3. Maximize Clicks
Best for: Businesses looking to drive as much traffic as possible within a set budget.
Maximize Clicks is an automated bidding strategy where Google attempts to get the most clicks for your budget. While it can be useful in some scenarios, it’s generally not the best choice for lead generation campaigns, as clicks don’t always translate into conversions.
Pros:
Good for driving traffic quickly.
Fully automated—no need for manual bid adjustments.
Cons:
Can result in low-quality traffic.
Doesn’t focus on conversion quality.
4. Maximize Conversions
Best for: Businesses with at least 15-20 recorded conversions in 30-45 days.
Maximize Conversions uses Google’s AI to automatically adjust bids to generate the most conversions possible within your budget. However, it requires enough historical conversion data to work effectively. If you enable this strategy too soon, Google may optimize for the wrong types of leads.
Pros:
Fully automated and optimized for conversions.
Ideal for campaigns with sufficient conversion history.
Cons:
Can be expensive if conversion data isn’t accurate.
Not ideal for brand campaigns.
5. Target CPA (Cost Per Acquisition)
Best for: Businesses that want to generate leads at a specific cost per conversion.
Target CPA allows you to set the maximum amount you’re willing to pay for a lead. Google will then adjust bids to generate as many conversions as possible at that cost. This strategy works best when your account already has a significant amount of conversion data.
Pros:
Helps control cost per conversion.
Ideal for businesses with strong historical conversion data.
Cons:
If the CPA target is set too low, Google may struggle to get conversions.
Requires accurate tracking and consistent conversion volume.
6. Target ROAS (Return on Ad Spend)
Best for: E-commerce businesses that track revenue per conversion.
This strategy is similar to Target CPA but focuses on optimizing for return on ad spend rather than cost per conversion. It’s primarily used for e-commerce, so it’s not as relevant for lead-generation businesses.
Pros:
Great for businesses that track revenue from conversions.
Uses Google’s AI to optimize for profitability.
Cons:
Not ideal for service businesses.
Requires accurate revenue tracking.
7. Maximize Conversion Value
Best for: Businesses tracking lead quality and assigning values to different conversions.
This strategy optimizes for the highest-value conversions rather than just the most conversions. However, you need to assign a value to each lead type in your Google Ads setup.
Pros:
Optimizes for high-value conversions.
Works well if you assign values to different lead types.
Cons:
Requires advanced tracking and value attribution.
May not be ideal for all service businesses.
Which Bidding Strategies Work Best for Lead Generation?
For service-based businesses focused on generating leads, the best approach is often:
Start with Manual CPC – This ensures you’re bidding strategically before letting Google’s AI take over.
Switch to Maximize Conversions – Once you have at least 15-20 conversions in 30-45 days, allowing Google to optimize your bids.
Consider Target CPA – If you want to keep your cost per lead consistent, Target CPA is a good long-term strategy.
For brand campaigns, Manual CPC is often better than Max Conversions because it gives you more control over bidding and cost per click.
Which Bidding Strategy is Best for Your Campaign?
Now that you understand the different Google Ads bidding strategies available in 2025, the next step is determining which one best fits your campaign goals. The right choice depends on factors like your industry, budget, historical data, and overall advertising objectives. Let’s break it down.
1. Are You Running a Brand Awareness or Lead Generation Campaign?
The first question to ask yourself is whether your primary goal is brand awareness or lead generation. Since Good Growth specializes in lead generation for service businesses, we’ll focus primarily on strategies that help drive high-quality leads at a reasonable cost.
For Lead Generation: Prioritize bidding strategies that focus on conversions rather than clicks. Manual CPC, Maximize Conversions, and Target CPA are generally the best choices.
For Brand Awareness: If your goal is to increase visibility, Manual CPC is often the best option. Maximize Clicks could also work, but it tends to attract lower-quality traffic.
2. Do You Have Historical Conversion Data?
The amount of conversion data in your Google Ads account plays a huge role in determining the best bidding strategy.
If You Have No Conversion Data: Start with Manual CPC to maintain control over your bids and gather data efficiently. You can also experiment with Enhanced CPC to allow Google some flexibility in bid adjustments.
If You Have At Least 15-20 Conversions in 30-45 Days: You can safely switch to Maximize Conversions to let Google optimize bids for leads.
If You Have Significant Conversion Data (50+ per month): Consider Target CPA to maintain a predictable cost per lead.
For brand campaigns, stick with Manual CPC, regardless of data, to maintain full control.
3. What’s Your Budget?
Your daily ad spend also impacts which bidding strategy will work best.
Smaller Budgets ($500-$3,000 per month): Use Manual CPC to avoid overspending while gathering data. Once you have enough conversions, transition to Maximize Conversions or Target CPA if you have a consistent CPA target.
Medium Budgets ($3,000-$10,000 per month): You can start testing Maximize Conversions earlier but should still ensure proper conversion tracking before relying on automation.
Larger Budgets ($10,000+ per month): Google’s AI performs best with higher budgets and larger datasets. Target CPA or Maximize Conversions are the best strategies for scaling campaigns efficiently.
4. How Competitive Are Your Keywords?
High-competition industries like legal services, home remodeling, and financial advising require a more strategic approach to bidding.
For High-CPC Niches: Manual CPC is often the best starting point, as it prevents overspending on expensive clicks. Once you establish a solid conversion rate, you can test Maximize Conversions or Target CPA.
For Lower-CPC Niches: Maximize Conversions can work well from the start, as the lower cost per click allows Google to optimize efficiently without draining your budget.
5. Should You Use Automated Bidding Right Away?
While Google often pushes advertisers toward automated bidding, it’s not always the best choice immediately.
Here’s a guideline on when to transition:
Bidding Strategy | When to Use |
|---|---|
Manual CPC | Best for new campaigns, brand awareness, and accounts with no conversion history. |
Enhanced CPC | Works well for campaigns that need some automation while keeping manual control. |
Maximize Conversions | Best for campaigns with at least 15-20 conversions in 30-45 days. |
Target CPA | Ideal for established campaigns with consistent conversion data (50+ per month). |
Maximize Clicks | Only recommended for brand awareness campaigns with large budgets. |
Making the Right Choice for Your Business
To summarize, here’s how to choose the best bidding strategy based on your specific situation:
New to Google Ads? Start with Manual CPC to establish control over costs.
Have conversion data? Switch to Maximize Conversions if you have at least 15-20 conversions in a 30-45 day period.
Want a stable cost per lead? Use Target CPA, but only if you have at least 50 conversions per month.
Running a brand campaign? Stick with Manual CPC for better control over click costs.
Limited budget? Avoid Maximize Clicks since it prioritizes volume over lead quality.
Understanding your goals, budget, and data availability will help you make an informed decision about Google Ads bidding in 2025.
Advanced Bidding Strategies to Improve Your ROI
Now that we’ve covered the fundamentals of Google Ads bidding strategies and how to choose the right one for your business, let’s explore advanced tactics to help you maximize return on investment (ROI) and generate high-quality leads consistently.
1. Leveraging Conversion Tracking for Smarter Bidding
Accurate conversion tracking is the foundation of a successful Google Ads campaign. Without it, Google’s automated bidding strategies can’t optimize properly, and you won’t have the data needed to make informed decisions.
Here’s how to ensure your tracking is set up correctly:
Track the Right Conversions: Focus on high-value actions like phone calls, form submissions, and appointment bookings. Avoid tracking low-value actions like page views or button clicks.
Use Google Tag Manager (GTM): Implement GTM to track multiple conversion actions without modifying website code.
Enable Enhanced Conversions: This feature sends hashed first-party customer data to Google, improving bid strategy optimization.
Connect Google Ads with CRM Data: If possible, integrate your CRM to track lead quality and optimize for actual sales instead of just raw leads.
A well-configured tracking setup ensures that bidding strategies like Maximize Conversions and Target CPA work effectively without wasting budget on low-intent users.
2. Adjusting Bids Based on Lead Quality
Not all leads are created equal. A high volume of conversions doesn’t always mean success if those leads don’t turn into customers.
To improve lead quality:
Review Lead Data Regularly: Analyze form submissions and call recordings to determine the true value of your leads.
Use Offline Conversion Tracking: If you close deals over the phone or in person, upload offline conversions to Google Ads to train the algorithm on valuable leads.
Create Value-Based Conversion Tracking: Assign different values to conversions based on lead quality, allowing Google’s algorithm to prioritize better leads.
For example, if you run a law firm, a free consultation request may be worth more than a general inquiry. Adjusting your bidding to prioritize high-value leads can significantly improve your ROI.
3. Using Bid Adjustments to Fine-Tune Performance
Even with automated bidding, bid adjustments remain a powerful tool for refining performance.
Some key areas to adjust include:
Device Bid Adjustments: If mobile traffic converts better than desktop, increase mobile bids.
Location Bid Adjustments: If certain cities or zip codes bring in better leads, raise bids for those locations.
Ad Schedule Bid Adjustments: Increase bids during peak business hours and lower them during off-hours.
Audience Bid Adjustments: If remarketing audiences or past website visitors convert at a higher rate, increase bids for those groups.
While automated bidding handles a lot of the optimization, using manual bid adjustments strategically can help further refine performance.
4. Segmenting Campaigns for Better Control
One common mistake advertisers make is lumping all services, products, or locations into a single campaign. This limits control over budget allocation and bidding.
Instead, consider segmenting your campaigns:
By Service or Product Category: If you offer multiple services (e.g., HVAC, plumbing, and electrical), create separate campaigns to tailor ad copy and bidding.
By Location: If you serve multiple areas, break them into separate campaigns to optimize bids based on regional performance.
By Intent: Create separate campaigns for cold audiences (new users) and warm audiences (remarketing and brand searches) to apply different bidding strategies.
Breaking campaigns down allows for greater flexibility in budget distribution and bid adjustments, ultimately leading to a more efficient ad spend. However, you need to make sure each campaign and ad group has sufficient data flowing in. This strategy only works when you have a healthy budget and enough data for the platform to learn from.
5. Testing and Iterating for Long-Term Success
Google Ads is not a “set it and forget it” platform. The most successful advertisers continuously test and refine their bidding strategies.
Here’s how to stay ahead:
A/B Test Bidding Strategies: If you have enough traffic, run experiments to compare Maximize Conversions vs. Target CPA and determine which delivers better results.
Monitor Performance Weekly: Regularly review cost per lead, conversion rate, and ROI to identify trends and make adjustments.
Adapt to Market Changes: Competition, seasonality, and consumer behavior change over time—adjust your bidding strategy accordingly.
Use Google Ads Experiments: Instead of making abrupt changes, use Experiments to test new bidding strategies before fully committing.
The key to long-term success is continuously gathering data and optimizing based on performance insights.
Common Pitfalls & How to Avoid Them
Even experienced advertisers can make mistakes when it comes to Google Ads bidding.
Here are some common pitfalls and how to avoid them:
Using Automated Bidding Too Soon: Don’t switch to Maximize Conversions or Target CPA without enough conversion data. Start with Manual CPC first.
Ignoring Lead Quality: High conversion volume doesn’t always mean high ROI. Implement tracking to measure lead value, not just quantity.
Setting Unrealistic Target CPAs: If your Target CPA is too low, Google may limit impressions and traffic. Start with a realistic number based on historical data.
Not Factoring in Seasonality: Adjust bids based on seasonal demand fluctuations to maintain efficiency.
Forgetting to Optimize Landing Pages: Even the best bid strategy won’t work if your landing page doesn’t convert. Ensure pages are optimized for speed, clarity, and strong CTAs.
Avoiding these mistakes will help ensure your Google Ads campaigns run efficiently and deliver consistent results.
Final Thoughts & Next Steps
Choosing the right Google Ads bidding strategy in 2025 comes down to understanding your business goals, budget, and available data.
Here’s a quick recap:
Start with Manual CPC if you don’t have conversion history.
Switch to Maximize Conversions once you have 15-20 conversions in 30-45 days.
Use Target CPA only if you have 50+ monthly conversions and a stable cost per lead.
Implement bid adjustments and campaign segmentation for better control.
Regularly test, track, and optimize to maintain strong ROI.
At Good Growth, we specialize in helping service businesses get more high-quality leads through expertly managed Google Ads campaigns.
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