Smart Bidding
Smart Bidding is Google Ads' set of automated bid strategies that use machine learning to optimize bids for conversions or conversion value in every auction.
What is Smart Bidding?
Smart Bidding is the umbrella term for Google Ads’ automated bid strategies that optimize for conversions or conversion value. Instead of setting cost-per-click bids manually, you set a goal and Google’s machine learning adjusts the bid for each individual auction, using signals such as device, location, time of day, language, browser and the search itself.
The main strategies:
- Maximize conversions, optionally with a target CPA (cost per acquisition).
- Maximize conversion value, optionally with a target ROAS (return on ad spend).
Microsoft Advertising offers comparable automated strategies.
Smart Bidding works well when its inputs are right:
- Reliable conversion tracking: the system optimizes for exactly what you measure. If form spam or unimportant actions count as conversions, it will buy more of them. In B2B, importing qualified leads or sales from your CRM helps a lot.
- Enough data: campaigns with few conversions learn slowly. Grouping similar markets or campaigns can help.
- Patience: after changes, strategies go through a learning period; judge results over weeks, not days.
For international campaigns, set targets per market: conversion rates, deal sizes and margins differ, so one target CPA or ROAS across all countries rarely makes sense. Smart Bidding is also the basis for Performance Max, AI Max and broad match.