Maximize conversions bidding (customer actions that convert to sales or service) will help you optimize towards conversions.
You have the option to set a Target CPA on your Maximize conversions bidding strategy, which means Smart Bidding will try to get as many conversions as possible at the target CPA that you set.
What are the two types of bidding
Bidding performs in two ways online: unique bidding and dynamic bidding.
What is better conversions or clicks
Maximise clicks allows you to set a maximum cost per click (CPC), whereas maximise conversions does not.
Maximise conversions is likely to spend a greater portion (often all) of your daily budget when compared to maximise clicks.
Why is cost-per-click important
The Importance of Cost Per Click in Search Advertising Cost-per-click is important because it is the number that is going to determine the financial success of your paid search campaigns, and how much Google Ads will cost for you.
Should I use maximize clicks
Both maximise clicks and maximise conversions are effective Google Ads strategies… as long as they’re used in the right way.
As a rule, maximise clicks should be your starting point and maximise conversions should be used once you’ve built up the necessary base of knowledge.
Which bidding strategy works to hit
Target-cost-per-acquisition (tCPA) bidding strategy works to hit your desired CPA and allows you to achieve more conversions at a stronger ROI without manual optimization.
What’s a Good ctr
For arts and entertainment, the average click-through rate is 10.67%, so a good CTR for businesses in this industry would be something like 11-12%.
However, those are the two extremes. You can see that most industries have an average click-through rate of between 4-6%.
So a good Google Ads click-through rate is 6-7%+.
What is highest volume bid strategy
When you use the highest volume bid strategy, we’ll aim to get the most results possible from your budget.
For example, an event planner could use the highest volume bid strategy to get as many people as possible to attend an upcoming music festival, where cost per attendance doesn’t matter.
Should I focus on conversions or clicks
If you want customers to take a direct action on your site, and you’re using conversion tracking, then it may be best to focus on conversions.
Smart Bidding lets you do that. If you want to generate traffic to your website, focusing on clicks could be ideal for you.
Should a CPA be high or low
There’s no set value of what an ideal CPA should be – it’s different for every business.
Some business models can afford to pay for a larger number of clicks that don’t necessarily convert, if the revenue they’re getting for each individual customer is high enough.
Should CTR be high or low
A high CTR is a good indication that users find your ads and listings helpful and relevant.
CTR also contributes to your keyword’s expected CTR, which is a component of Ad Rank.
Note that a good CTR is relative to what you’re advertising and on which networks.
Sources
https://marketingsyrup.com/manual-cpc-vs-maximize-clicks-bidding-google-ads/
https://blog.gsmarketing.com/blog/how-does-ad-rank-affect-your-cost-per-click-cpc
https://support.google.com/google-ads/answer/2390684?hl=en
