The Paid Search Podcast, Episode 490

"How to Build a Successful Search Campaign + Easy to Follow Instructions"
Date: December 1, 2025
Host: Chris Schaeffer, Certified Google Ads Specialist

Overview

In this solo episode, Chris Schaeffer tackles a foundational question in Google Ads management: Is manual bidding still relevant in 2025/2026? Chris argues a resounding “yes,” and walks listeners through the enduring strengths of manual bidding, especially for businesses that don’t fit the one-size-fits-all promise of Google’s automated options. Drawing from real campaign examples, he offers easy-to-follow instructions for building effective search campaigns centered on value-based bidding.

Key Discussion Points & Insights

1. Manual Bidding Is Still Relevant

• Chris opens with the persistent debate about manual bidding: despite predictions that it would be phased out, it remains the default for his clients, especially new campaigns and “non-typical” accounts.
  • “I'm going to discuss how things are still the same in Google Ads after all these years...I'm going to talk about why manual bidding is still relevant.” [01:00]
• Addresses the contrary advice of “advanced managers” who downplay manual bidding, but admit they use it before enough conversion data accumulates for automation.
  • “As soon as someone gives that kind of clarification about how they actually use manual, then it immediately makes it relevant for thousands and thousands of businesses.” [04:10]

2. Why Manual Bidding Excels for Many (If Not Most) Advertisers

• Automated strategies like Max Conversions or Target CPA require steady, high conversion data—which many small or specialized businesses lack.
  • “If you don't regularly bring in conversions in your account, maximize conversions, target CPA will not provide consistent results.” [05:15]
• Automated bidding might optimize for leads that are measured as conversions but not genuinely valuable (e.g. irrelevant calls or low-quality leads).
• Manual bidding gives granular control—pay more where value is highest, less where intent/value is questionable.
  • “With automated bidding, there's no way to prioritize that value and say, I want to pay a whole lot for this and I want to pay less for this...Value based bidding is the cornerstone.” [09:35]

3. The Value-Based Bidding Framework: Segmenting by Intent and Value

• Chris provides a practical, tiered structure for segmenting keywords into ad groups based on their indicative value, using real campaign setups.
• Key Principle: Not all traffic is equal. Assign bid levels according to intent and funnel stage.

Example 1: Home Generator Service [12:35]

• Ad Groups/Bid Levels:
  • General/Research: keywords like “home generator,” “generators for house” — $3 CPC
  • Installation: “home generator installation,” “generator installation companies” — $10 CPC
  • Maintenance/Repair: for users seeking service — $20 CPC
  • Service Company: broader service-focused searches — $19-20 CPC
• Quote:
  • “You should not pay top dollar for someone...that's searching for home generators, but they haven't searched for someone who can do service, installation, some type of service company.” [14:24]
• Explains that higher bids are justified for higher-intent, lower-volume keywords, and that bid tiers should be set with 2–3x differences, not a few cents.
  • “When you do manual bidding, do not separate your ad groups at these different value levels by a dollar or a few cents...We should be talking about 2x3x differences.” [20:50]

Example 2: Specialized Loan Provider [23:43]

• Applied to businesses without an obvious service funnel (no installations).
• Keyword Segmentation:
  • General/High-funnel: searches like “how to get a loan with no job”—Lower bids ($7)
  • Qualified Intent: “no income verified loan”—Mid bids ($7)
  • Highly Qualified: “stated income loan”—Highest bids ($15)
• Outputs: Far fewer searches for “stated income,” but conversion rate doubles (10% vs. 5%), which justifies higher bidding.
• Quote:
  • “Stated income gets much better conversion rates because these people are qualified, they're more valuable, so I bid more for them.” [27:40]

Quick Formula for Setting Bids [20:50]

• Start with low bid ($2–$3) for low-value/high-volume (high-funnel or generic).
• 2x–3x bid increment for each higher value/intent ad group (i.e., $3 → $6 → $12 → $24).
• Adjust as real data/situation requires.

4. The Four Value Levels of Search Intent

• Chris categorizes keyword intent (and thus bid value) into four levels:
  1. Funnel Adjacent / Least value: Irrelevant/nudgable searches; lowest bids.
  2. High-Funnel / Moderate value: Research/generic product terms; moderate/low bids.
  3. Mid-Funnel / Good value: More defined, likely needing solution; higher bids.
  4. Low-Funnel / Best value: Ready-to-purchase/service intent; highest bids.
• Quote:
  • “If nothing else makes sense...think about the four levels of value in Google Ads: Funnel adjacent, high funnel, mid funnel, and low funnel.” [31:10]

5. Tactics for Keyword Match Types [34:40]

• Default Recommendation: Start with phrase match for all keywords.
  • “...as a rule of thumb I would suggest phrase match for everything to start.” [34:50]
• Exact Match for Outliers:
  • Use exact match for extremely generic keywords (e.g. “generator”) to avoid broad irrelevant clicks.
  • Use exact match for high-value, high-bid keywords that may go “unruly” as phrase match and attract irrelevant searches due to large bids.
  • Keep most ad groups as phrase match, but “snap” problematic terms to exact as needed.

Notable Quotes & Memorable Moments

• “Manual bidding is a standard by which I run every single new campaign that I launch.” [03:15]
• “Value based bidding is the cornerstone of what makes manual bidding work so well.” [09:35]
• “If you're in that scenario where you hear about max conversions, target cpa, and you've tried those and you continue to be very frustrated...the problem is that your conversions are inconsistent.” [05:35]
• “Do not separate your ad groups at these different value levels by a dollar or a few cents...We should be talking about 2x3x differences.” [20:50]
• “If nothing else makes sense in Google Ads, think about the four levels of value...least value, moderate value, good value, and best value.” [31:10]
• “Phrase match to start, but exact match for those keywords that stretch too far or have really high bids.” [34:50–36:15]

Instructive Segment Timestamps

• 01:00 – Chris frames the episode: state of manual bidding in 2025/2026
• 04:10 – Why manual bidding is still relevant
• 09:35 – The cornerstone of value-based bidding
• 12:35 – Example #1: Home generator service campaign structure
• 20:50 – Setting bid tiers (2–3x increments)
• 23:43 – Example #2: Loan provider campaign structure
• 31:10 – The four value levels of campaign structuring
• 34:40 – Match type recommendations and cautions

Actionable Takeaways

• Segment your keywords by intent and business value. Use ad groups to reflect these tiers.
• Set base bids low for high-volume generic terms; double or triple your bid for each tier of increased intent/value.
• Start with phrase match for most keywords; use exact match to control both extremes (generic or high-bid keywords that misbehave).
• Adjust based on real data: Watch conversion rates and adjust bid tiers as needed.
• Remember: Automated bidding is not a panacea—the more control you need (especially with tricky or low conversion data), the more manual bidding matters.

Closing

Chris stresses that the techniques he outlines are approachable, actionable, and as relevant as ever for advertisers who want practical control over their Google Ads spend, especially when automated bidding isn’t delivering. Manual bidding empowers advertisers to pay for what matters most, not what Google says "should" matter.

To get hands-on advice or management, visit ChrisSchaeffer.com.