What does limited by bid strategy mean?

Limited by bid strategy means that your ad’s performance may be restricted by your current bidding strategy. This notification from Google Ads indicates that the way you are bidding might be preventing your ad from achieving its full potential, and suggests that adjusting your bidding approach could lead to better results.

Full Explanation

The term “limited by bid strategy” is used within Google Ads to inform advertisers that the current bidding strategy they are using could be the factor holding back their ad performance. Essentially, it means that the bids set or the strategy behind those bids are not fully aligned with maximizing the ad’s reach or effectiveness. This limitation can prevent your ads from displaying as often or as competitively as they could under a different bidding strategy.

Step-by-Step Breakdown

Identification: You receive a notification that your campaigns are “limited by bid strategy.” This is an alert to review your bidding setup.
Assessment: Recognize that the bids you currently place are restricting your ads from performing at their best.
Adjustment: Consider changing the bidding strategy to improve ad performance. This could involve selecting a different type of bid approach or optimizing bids further.
Improvement: Once adjusted, the ads should have a better opportunity to receive more impressions, clicks, and conversions.

Real Examples

While no specific examples were provided, this concept applies broadly whenever Google Ads alerts you that your bidding strategy is limiting performance. For example, if you use a bidding strategy with maximum limits that are too low, Google Ads might notify you to reconsider your approach.

Common Mistakes

Ignoring the “limited by bid strategy” notification and continuing with the same bidding approach without evaluation.
Setting bid limits that are too restrictive, which can stifle ad delivery and performance.
Failing to regularly monitor and adjust bidding strategies based on campaign results.

FAQs

Q: Why does Google Ads tell me my campaign is limited by bid strategy?
A: It means your current bid setup is not helping your ads reach their full potential and that you may need to adjust your bidding method.

Q: Will changing my bid strategy improve ad performance?
A: Yes, adjusting your bid strategy can help improve the visibility and effectiveness of your ads by removing restrictions caused by the current bidding setup.

Key Takeaways

“Limited by bid strategy” indicates that your ad performance is being held back by your current bids.
This notification from Google Ads encourages you to evaluate and possibly adjust your bidding strategy.
Making changes to your bidding approach can help improve your ad reach and results.