What is Smart Bidding?
Smart Bidding is the collective name for the automated bid strategies in Google Ads that use machine learning to set a bid in every auction. It covers target CPA, target ROAS, Maximize conversions and Maximize conversion value. The system looks at signals such as device, location and time of day when it sets the bid.
Why is Smart Bidding important?
- A bid per auction: the bid adapts to the context of every search.
- Steering on results: you set a goal and the system looks for the clicks that fit it.
- Dependent on tracking: the system learns from what you count as a conversion, so poor tracking means poor bidding.
Examples of Smart Bidding
- A local installer uses Maximize conversions to get as many quote requests as possible.
- A B2B software company sets a target CPA of €80 per demo request.
- A sporting goods store steers toward a ROAS of 5 with a target ROAS.
How do you use Smart Bidding?
First make sure your conversion tracking is right and only measures actions that carry real value. Then pick a strategy that fits your goal and let it get through the learning phase without major changes. Most manual bid adjustments are ignored, so steer with targets, seasonality adjustments and data exclusions. Read more about Google Ads campaigns.