Bid Strategy Doubt - Which bid strategy to choose initially?

Hello Kavit,

Thank you for using Microsoft Advertising Community Forum!

You're actually on the right track in choosing the bid strategy for your campaign. I'll give you more details on how our bid strategies work:

With Maximize conversions, Microsoft Advertising automatically sets your bids in real time to get as many conversions as possible within your budget. Microsoft Advertising will always respect your overall budget limit, but if you want greater control over your bids while using Maximize Conversions, you can also set a maximum cost per click) (CPC). This is an optional limit you can set to make sure that Microsoft Advertising never charges more than a certain amount for each individual click.

Note: You need to have conversion tracking (either a UET tag + an active conversion goal, or offline conversions) set up in order to use the Maximize conversions bid strategy. We recommend giving the bid strategy enough time to accumulate at least 30 conversions before evaluating its performance.

While for Maximize clicks, Microsoft Advertising automatically sets your bids in real time to get as many clicks as possible within your budget. Microsoft Advertising will always respect your overall budget limit; but if you want greater control over your bids while using Maximize Clicks, you can also set a maximum CPC (cost per click). This is an optional limit you can set to make sure that Microsoft Advertising never charges more than a certain amount for each individual click.

Lastly, Enhanced cost per click (CPC) is the default bid strategy setting when you create a new campaign. With Enhanced CPC, you set your ad group and keyword bids, and Microsoft Advertising automatically adjusts your bids in real time to increase your chances for a conversion. Your bid will go higher on searches that are more likely to convert and lower on searches less likely to convert (up or down, this change will be made after we apply any bid adjustments you have set). Over the long haul, though, we will try to make sure that your average CPC is not higher than your bid.

Based on the information above, Enhanced CPC would be a good starting point as it can help you achieve more conversions while you're still setting up for conversion tracking. But for the best results, we strongly recommend using Enhanced CPC in conjunction with conversion tracking (a UET tag and a conversion goal). Then, Maximize conversions can be used as an alternative bid strategy.

Our support teams are happy to discuss your account in more detail via phone, chat or email to provide review assistance, please see our support page to reach out! 

I hope the information provided here will at least partly answer your question.  I'll also send you a private message regarding this. If you have questions, please let me know.

Kind regards, 

Jefferson| Microsoft Advertising Support Specialist | 800-518-5689