AdWords Bid Strategy Status Explained!

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AdWords Bid Strategy Status indicates whether automated bid strategies for AdWords campaigns are active or not. AdWords Bid Strategy Status also highlights the reasons if bidding is limited.

PS: Bid Strategy Status is applicable only to those advertisers who use AdWords automated bidding.

In this article, I have explained different AdWords Bid Strategy Status and their meaning.

Different AdWords Bid Strategy Status

Inactive: Inactive bid strategies aren’t dormant. There could be a few reasons why bid strategies get inactive.

If no campaigns, ad groups, or keywords are using a bidding strategy, it gets idle.

AdWords changes the bidding strategy’s status to inactive if you pause the ad groups and the keywords associated with the bid strategy.

If you spend out the budget, it could cause a bidding strategy to become inactive.

Active: If the status is active, you got nothing to do. Active bidding strategies optimize your bids for performance.

Learning: AdWords is continuously learning. It understands your campaign performance and suggests you improvements. Learning status indicates that AdWords is gathering performance data which it uses to optimize bids. When you hover the “speech bubble” next to the status, you will find the reason why AdWords is learning about this strategy. The reasons could be:

  • The strategy is brand new.
  • You changed the budget.
  • You changed setting such as conversion setting or conversion action setting.
  • Campaigns, ad groups or keywords related to the bidding strategy are altered.
Note

It is best not to change strategies often. AdWords takes time to learn each time you make any changes. And the data during the learning period is not accurate. Please wait till it ends to use the data to measure the performance.

Limited: Bidding strategies have limited/restricted performance due to several reasons.

  • Keywords bids are either higher than the maximum bid limit or low than the minimum bid limit.
  • Missing conversion data or very little data for AdWords to optimize effectively.
  • Automated/manual bids are using up the shared bidding strategy budget.
  • Multiple campaigns using a bidding strategy are limited by budget (daily budget lower than the minimum).
  • Poor quality score keywords that result in low impression count that is insufficient to meet the bidding strategy goals.

Misconfigured (conversion settings): Different automated and conversion-based bid strategies such as Target cost-per-acquisition (CPA), Target return-on-ad-spend (ROAS), Maximize conversions, or Enhanced cost-per-click (ECPC) use historical conversion data to optimize bid performance. If conversion tracking and conversion actions aren’t right, automated bidding strategies won’t work well.

Learn how conversion setting can limit bid strategy performance, and how to fix the settings.

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Mantha Sai Praveen

Content marketer by day, a poet by night.

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