A Guide to PPC Bid Management

Running PPC ads is all about making smart choices, and stretching your budget while ensuring your ads reach the right people at the right time. That’s where bid management helps you stay in control.

PPC bid management sets the right bids for your keywords to maximize results without overspending.

In this guide, we’ll walk you through everything you need to know about PPC bid management, from different bidding strategies to practical tips for optimizing your ad spend.

How PPC Auctions Work

PPC auctions operate in real time across various advertising platforms, including Google Ads, Microsoft Advertising (Bing Ads), Meta Ads (Facebook and Instagram), LinkedIn Ads, and more. These auctions determine which ads appear, in what position, and at what cost to you. While each platform has its own bidding mechanics, they all follow a similar core process.

For example, in a search engine like Google or Bing:

1. The platform identifies all ads with keywords relevant to the search query.
2. Ineligible ads (due to disapproved content, targeting mismatches, etc.) are filtered out.
3. The remaining ads are ranked based on an ad relevance and quality assessment.
4. Only ads with sufficiently high rankings get displayed.

On social media platforms like Facebook or LinkedIn, the auction process considers factors beyond just keywords, such as audience targeting, engagement history, and ad quality, to determine which ads appear in a user’s feed.

This entire process happens instantaneously behind the scenes, with key ranking factors varying slightly by platform but generally focusing on ad quality, bid amount, and user engagement signals.

Quality Score (or Equivalent Metrics)

On Google Ads and Microsoft Advertising, Quality Score is a metric rated on a scale from 1-10. It’s based on three components: expected click-through rate (CTR), ad relevance, and landing page experience. A higher Quality Score can lower costs and improve ad positioning.

Other platforms have similar quality-based metrics:

• Meta Ads (Facebook, Instagram): Ad Relevance Diagnostics (Quality Ranking, Engagement Rate Ranking, and Conversion Rate Ranking).
• LinkedIn Ads: Relevance Score, based on ad engagement and click-through rate.
• Microsoft Ads: Quality Score, similar to Google’s, evaluating relevance and user experience.

Optimizing user experience (UX), audience targeting, and ad content can improve these quality metrics across platforms.

Ad Rank (or Auction Score)

Most PPC platforms use an ad ranking system to determine placement. On Google Ads and Microsoft Ads, Ad Rank is calculated using:

Ad Rank = Bid × Quality Score (plus additional factors like ad format and user intent).

Social platforms like Facebook, Instagram, and LinkedIn use an Auction Score, which considers:

• Bid amount
• Estimated action rate (likelihood a user will engage)
• Ad quality and relevance

This means that on any PPC platform, advertisers with better relevance and engagement can outperform competitors who bid higher but have lower quality scores.

How to Choose the Right Bidding Strategy for Your PPC Platform

Each PPC platform offers various bidding strategies designed to align with different business objectives. The right choice depends on your goals, whether you prioritize cost efficiency, maximizing reach, or driving conversions.

While bidding strategies differ across platforms, they generally fall into three broad categories:

1. Manual bidding – Full control over individual bid amounts.
2. Automated bidding – AI-driven adjustments based on performance predictions.
3. Goal-based bidding – Optimized for specific objectives like conversions, ROAS, or impression share.

1. Manual Bidding (Best for Maximum Control)

Manual bidding allows you to set your own CPC or cost-per-impression (CPM) limits. This strategy is most effective when:

• You’re launching a new campaign and need tight control over costs.
• You want to optimize specific ad placements manually.
• You need precise budget allocation across keywords or audience segments.

Platforms that support manual bidding include Google Ads (manual CPC), Microsoft Advertising (manual CPC), Meta Ads (manual bidding with cost caps), and LinkedIn Ads (manual bidding for CPC, CPM, and CPS).

2. Enhanced CPC and Semi-Automated Bidding (Best for Gradual Optimization)

Some platforms offer hybrid bidding, where you set a base bid, but the system automatically adjusts bids based on conversion likelihood. This balances control with automation.

Examples include:

• Enhanced CPC (Google and Microsoft Ads): Raises or lowers bids based on predicted conversion rates.
• Cost Cap Bidding (Meta Ads): Ensures an average cost per result while maximizing results.
• LinkedIn Auto-Bidding: Adjusts bids based on audience engagement data.

This is ideal for advertisers who want their ads to be more efficient without fully transitioning to AI-driven bidding.

3. Target CPA and Conversion-Based Bidding

Automated bidding strategies like Target CPA (Google and Microsoft Ads) and Cost Per Result Bidding (Meta Ads) use machine learning to adjust bids and maximize conversions within a target acquisition cost.

This PPC bid management strategy is best for:

• Businesses with well-defined conversion goals (e.g., lead generation, sales).
• Accounts with sufficient historical conversion data (typically 30+ per month).
• Competitive industries where cost-efficiency is a must.

4. Target ROAS (Return On Ad Spend) Bidding

For ecommerce ads and high-value lead generation campaigns, Target ROAS bidding helps maximize revenue from ad spend by dynamically adjusting bids based on expected conversion value.

It’s supported on:

• Google Ads
• Microsoft Advertising
• Meta Ads (Value-Based Bidding)
• LinkedIn Ads (for lead gen campaigns tracking revenue impact)

To implement this, you must accurately track conversion values across platforms.

5. Maximize Conversions and Clicks (Volume-Based Bidding)

These strategies focus on getting the highest possible number of conversions or clicks within a set budget. However, they don’t prioritize efficiency, so costs can fluctuate.

It’s available on Google, Microsoft, Meta, and LinkedIn ads.

Use this when:

• Your priority is volume (e.g., driving traffic, expanding audience reach).
• You have a fixed daily budget and want to use it fully.
• Cost-per-click or conversion isn’t the primary concern.

6. Target Impression Share and Competitive Visibility Bidding

For brands focused on visibility and dominance in search results or newsfeeds, impression-based strategies ensure higher placement.

This strategy is best for:

• Branding campaigns where visibility is a top priority.
• Competitive industries where staying top-of-page is essential.
• Local businesses targeting high-intent searchers.

It’s available on Google, Microsoft, Meta, and LinkedIn ads.

Advanced Bid Adjustments to Maximize ROI in PPC Bid Management

Tweaking your bids based on different factors helps you get your ads in front of the right people, without overspending. While the details vary by platform, the core idea is the same: spend more where you see results and pull back where you don’t.

Adjust Bids by Device

People browse differently depending on whether they’re on a phone, tablet, or computer. If mobile users convert better for you, it makes sense to increase bids for mobile traffic. If most of your high-ticket sales come from desktop users, you might want to prioritize that instead.

On Google and Microsoft Ads, you can set bid adjustments by device at the campaign level. Facebook Ads automatically optimizes for different placements but lets you exclude underperforming ones. LinkedIn lets you target by device type too.

Adjust Bids by Location

Not all locations perform the same. A clothing brand might sell better in big cities, while a local service business might want to focus on specific neighborhoods.

Google and Microsoft Ads let you fine-tune bids based on country, state, city, or even zip code. On Facebook, while you can target specific locations, you can’t manually adjust bids by region.

If a certain city brings in more customers, you can increase your bids there. If another area isn’t profitable, you can reduce or exclude bids altogether.

Adjust Bids by Time of Day

Some ads perform better at certain times. Maybe your customers shop online in the evening, or your restaurant gets the most delivery orders during lunch hours. Instead of wasting money when engagement is low, adjust your bids to match peak activity.

Google and Microsoft Ads allow bid adjustments based on time and day of the week. Facebook and LinkedIn don’t let you manually adjust bids by time, but you can schedule your ads to run only during the best hours.

Learn more: How to Use Dayparting to Improve Ad Targeting

Adjust Bids by Audience

Not all customers are the same. Someone who visited your website last week is more likely to buy than a random person who’s never heard of you. This is where audience-based bidding comes in.

Google and Microsoft Ads let you increase bids for people who have already interacted with your business through remarketing lists. On Facebook, you can prioritize Custom Audiences (like past website visitors or email subscribers). LinkedIn lets you target users based on job titles, but for B2C, that’s usually less relevant.

Layering Adjustments for Best Results

The best PPC campaigns don’t rely on just one type of bid adjustment, they combine multiple factors. For example, if you know mobile users in New York convert best on weekday afternoons, you can increase bids for all three factors at once.

Fine-tuning your bids this way helps stretch your budget further, so you’re paying more where it counts and less where it doesn’t. It takes some testing, but once you find the right balance, you’ll see better results without spending more.

Common PPC Bid Mistakes (and How to Fix Them)

Managing PPC bids isn’t just about setting a number and hoping for the best. Even experienced marketers make mistakes that waste money or limit performance. Here’s how to avoid the most common ones.

Changing Bids Too Soon

One of the biggest mistakes is tweaking bids before your campaign has had time to settle. PPC platforms like Google and Facebook need time to learn which users are most likely to convert. If you start adjusting bids too early, you’re disrupting that process and making decisions based on incomplete data.

To avoid this, let new campaigns run for at least 7-14 days before making major bid changes. If you’re testing a new bidding strategy, give it even longer, around 2-3 weeks, so the system has time to stabilize.

Ignoring Ad and Landing Page Quality

Bidding high won’t save an underperforming ad. If your click-through rate is low or your landing page isn’t converting, throwing more money at bids won’t fix the problem. Google and Microsoft use Quality Score to determine how much you actually pay per click, and low-quality ads get penalized with higher costs.

Instead of just increasing bids, focus on making your ad copy more engaging and relevant. Improve landing pages so they match search intent, load quickly, and provide a great user experience. Even small tweaks, such as simplifying a form or adding trust signals, can increase conversions and lower costs.

Making Changes Too Often (or Not Often Enough)

Some marketers obsess over bid adjustments daily, which creates volatility and prevents the algorithm from optimizing properly. Others set bids once and forget about them, missing key opportunities to refine their approach.

Try to find the right balance. For most accounts, a weekly or bi-weekly optimization schedule works best. Higher-spending accounts may need adjustments more often, while smaller ones can check in less frequently. Instead of reacting to daily fluctuations, focus on long-term trends to make smarter bid adjustments.

Not Adjusting Bids Based on Context

Bids shouldn’t be the same across the board, since different devices, locations, and times of day perform differently. If you don’t adjust for these factors, you’re likely overpaying in some areas and underbidding in others.

To make sure your budget is working as efficiently as possible, use bid adjustments based on performance data. If mobile users convert at a higher rate, increase mobile bids. If certain cities generate more revenue, raise bids in those areas. If conversions drop at night, lower bids during off-hours.

Sticking to the Same Strategy Forever

Just because a bidding strategy worked last year doesn’t mean it’s the best choice now. Platforms update their algorithms, competition changes, and user behavior shifts. If you’re still using manual bidding while your competitors are leveraging smart bidding, you might be missing out.

Regularly testing different bid strategies keeps your campaigns competitive. If you’re using manual CPC, try Enhanced CPC or a goal-based approach like Target ROAS. If you’re using Maximize Conversions, test Target CPA to control costs.

Smarter PPC Bid Management with AI

Managing PPC bids manually is a never-ending cycle of tracking trends, adjusting budgets, and trying to outmaneuver competitors. Even with a good strategy, making manual bid adjustments can only get you so far.

Pixis’ AdVance takes bid management to the next level by using advanced machine learning to optimize your campaigns in real time. It continuously analyzes past performance, market trends, and user behavior to make precise, data-driven bid adjustments. Instead of setting static bids, the AI dynamically adjusts them based on factors like keyword relevance, user intent, device type, and location.

But it doesn’t stop at real-time bidding. Predictive analytics identify seasonal trends, anticipate shifts in consumer behavior, and even detect competitor activity before it impacts your performance.

The platform also provides transparent insights into bid optimizations, showing you exactly where your budget is being allocated and why. This means you can scale campaigns efficiently and minimize wasted ad spend, without spending hours manually tweaking bids.

Book a demo to learn more about how Pixis can help you with PPC bid management.