I have listed below the different types of bidding options in google adwords.
1)Manual bidding -Max CPC bids
2)Conversion Optimizer New! --Max CPA bids
3)Budget Optimizer -No bids needed
4)Preferred cost bidding - Average CPC bids
1)Manual bidding -Max CPC bids
Using this option you would be able to set the highest price for each click. Google would not be charging you more than the set bid. If you like to have the maximum control over the bidding then use this option.
I am reminding you that position of the adcopies are decided by considering the Max cpc and the quality score.
2)Conversion Optimizer New! --Max CPA bids
You can set the highest price you want to pay for each conversion. For setting this up and running you should have had atleast 200 conversions in the last 30 days.
Do not forget to place the conversion tracking code in the "Thank you" pages.
Please note: Position preferences will be turned off.
3)Budget Optimizer -No bids needed
Budget optimizer requires no bids but a 30 day budget has to be set. Google will help you to get maximum clicks to your website.
Please note: Position preferences will be turned off.
No Adscheduling
4)Preferred cost bidding - Average CPC bids
In this option you can specify the average cpc willing to pay for each click.
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