Keyword Bidding for Beginners: How to Improve Your Google Ads Strategy

Posted on: June 19, 2025

Have you ever wondered why certain ads appear at the top of Google Search, while others are buried below? How well advertisers bid on keywords is often the factor.

"Keyword bidding" may seem hard to those who are new to paid search marketing, but it doesn't have to be. In this blog, we'll walk you through the process step by step, explaining how keyword bidding works, why it's important, and how to use it for your campaigns in 2025.

What is Keyword Bidding, Really?

Keyword bidding is the process of telling platforms such as Google Ads how much you're ready to pay for a click when someone searches for a specific keyword. Throwing money at the highest bidder isn't the only strategy. When deciding where to display your ads, Google considers both your bid and the ad's quality.

Think of it as a digital auction, only smarter. You don’t always have to bid the most to win. You just have to bid smart.

Why Keyword Bidding Matters

In a world where search intent drives every interaction, keyword bidding helps you:

●    Show your ads to the right people at the right time

●    Maximize ROI by targeting high-converting terms

●    Control ad spend while staying competitive

Knowing how to bid well can make or break your campaign, whether you're advertising a local service or an e-commerce product.

Types of Keyword Bidding Strategies

Both automated and manual bidding options are available in Google Ads. Below is an outline of the most common ones in 2025:

1. Manual CPC (Cost-Per-Click)

You set a maximum bid for each keyword. Great for beginners who want full control.

2. Enhanced CPC

Google automatically adjusts your manual bid up or down based on the likelihood of conversion.

3. Target CPA (Cost Per Acquisition)

You tell Google how much you're willing to pay for a conversion. Google tries to get as many conversions as possible within that budget.

4. Target ROAS (Return on Ad Spend)

If your goal is revenue, this strategy aims to deliver a specific return for every rupee you spend.

5. Maximize Clicks

Best for visibility-focused campaigns. Google tries to get the most clicks within your budget.

6. Maximize Conversions

Let Google’s machine learning take over, it automatically adjusts bids to get as many conversions as possible.

How Keyword Bidding Works (Step-by-Step)

Step 1: Keyword Research

Start by using tools such as SEMrush or Google Keyword Planner to find relevant keywords. Look for a combination of high-volume, low-competition terms and long-tail keywords with a clear intention.

Step 2: Set a Budget

Decide the amount you can afford to spend each day or each month. Your budget should be appropriate for your campaign's aims and degree of competition.

Step 3: Choose a Bidding Strategy

Select a strategy based on your goals, whether it’s traffic, conversions, or brand awareness.

Step 4: Monitor & Adjust

Check your campaign performance regularly. Adjust bids for underperforming or overpriced keywords. Use A/B testing to see what works best.

Step 5: Optimize for Quality Score

Google ranks ads based on both bid and Quality Score, which is a measure of ad relevance, landing page experience, and expected CTR. Higher quality means better placement at a reduced cost.

The goal of keyword bidding is to spend money more wisely, not more. Even if you are a beginner, you can get more control over your Google Ads performance once you understand the mechanics and methods involved.

Quick FAQ

Q1: Is keyword bidding only relevant for Google Ads?

No. It’s also used in Microsoft Ads and other PPC platforms that work on an auction-based system.

Q2: Can I change my bidding strategy later?

Yes, Google Ads allows flexibility. You can test and shift strategies as your campaign evolves.

Q3: What is a good starting daily budget for beginners?

Even ₹500–₹1,000 a day can work to test campaigns, provided your targeting and keywords are well optimized.