Bidding goals:Google Ads works as a bidding system. In this system, you choose the greatest amount you are willing to pay for your ad. This is what we call the bid amount. You can set different SMART Google Ads goals depending on the method of bidding you choose, let’s go through the different options:
Cost Per Click (CPC)Your company will only have to pay if someone clicks on the Google Ads advert. This means that your company will pay for the clicks that lead the users to the desired URL. The amount of clicks will depend on the quality of the campaign. So, if it is good, it will receive more clicks and you will have a higher chance of gaining new customers. But at the same time, it is an advantage for your company because you will not be spending any money if your ads don’t turn out to be successful. Thus, you have a bigger gap for mistakes and try-outs. A SMART Google Ads goal for CPC could look like this:
Cost Per Impression (CPI):
In this model, as far as the advert is being published, your company will pay a specific amount for every 1000 impressions. An impression occurs when your ad appears on the screen of a user. Thus, the clicks are not taken into consideration in this bidding method.
Cost Per Engagement (CPE):
With this model, a company pays according to what engagement a user has completed. This engagement is something defined by the company, such as watching a video, clicking on a photo, liking the ads, etc. An example could be that your company has a cost per engagement focused on video advertisements. Then you would only pay when a user has watched your video. With this method, you can also put some pressure on your team to achieve a Google Ads goal like this:
Click-Through rate:The CTR of your company is the amount of clicks your company gets on its ad. Google calculates it as a proportion of the number of views the ad is getting. The higher the CTR is, the more effective the ad is.In other words, it is a metric on the frequency with which users who are seeing your ads actually click on them. Therefore, it highly depends on the attractivity of your ads. It also depends on your capability to target the right users. You can use the CTR to set a Google Ads goal with your team, for example:
Expected Click-Through rate:
The expected click through-rate is part of the CTR, and it is an estimation made by Google. This estimation calculates the likelihood that a viewer will click on an ad after searching with a specific keyword. You can use it as a guideline to know if your ad should be reviewed or not.