The Bidding War: Capping the Downside

THE BRUTAL REALITY: AUTO-BIDDING IS A GAS PEDAL

Google wants you to spend more. You want to earn more.

The Conflict: "Max Conversions" sounds great until Google spends $500 on a single click because its AI was "testing."

The Truth: You must set a ceiling. If you don't know your Max CPA (Cost Per Acquisition), you are gambling, not marketing.

The Fix: Use "tCPA" (Target CPA) or "Enhanced CPC" to keep the machines on a leash.

1. THE BIDDING HIERARCHY

2. THE BREAK-EVEN MATH

If your product profit is $100, and your conversion rate is 5%, you can afford to pay a max of $5 per click. If the auction price is $10, walk away. Don't fight a losing war.

SMART WORDS

tCPA (Target Cost Per Acquisition)

The "Price Cap." The maximum you are willing to pay for a lead or sale.

ROAS (Return On Ad Spend)

The "Multiplier." How much revenue you get back for every $1 spent.

BID STACKING

The "Aggressive Move." Increasing bids for specific locations or times of day when you know your buyers are active.

TACTICAL DIRECTIVES

1. Calculate Max CPC: (Profit per sale x Conversion Rate). Never bid more than this number.

2. The Time Audit: Check your data. If you don't get sales between 1 AM and 5 AM, turn off your ads during those hours.

3. Location Cull: If your ads are running nationwide but 90% of sales are in 3 cities, stop wasting money on the rest of the map.