Smart Bidding Strategies: When and How to Use Them

One of the most powerful advancements in the evolution of Google pay per click advertising has been the introduction of Smart Bidding strategies. These automated bidding methods use machine learning to optimise for conversions or conversion value in every auction—a feature known as “auction-time bidding.” For advertisers looking to maximise performance without managing bids manually, Smart Bidding is a game changer.

What Is Smart Bidding?

Smart Bidding is a subset of automated bidding strategies within Google pay per click advertising that use machine learning to optimise your bids for conversions. Unlike manual CPC bidding, Smart Bidding adjusts your bids in real-time based on a wide range of signals, such as device type, location, time of day, language, browser, and more.

Key Smart Bidding Strategies

• Target CPA (Cost Per Acquisition): Aims to get as many conversions as possible at your target cost per action.
• Target ROAS (Return on Ad Spend): Focuses on maximising conversion value while trying to reach your target return on ad spend.
• Maximise Conversions: Seeks to get the highest number of conversions within your budget.
• Maximise Conversion Value: Aims to maximise the total value of conversions within your budget.
• Enhanced CPC (eCPC): Adjusts your manual bids to help you get more conversions while trying to maintain your same cost-per-conversion.

When Should You Use Smart Bidding?

Smart Bidding isn’t a one-size-fits-all solution. Here’s when it makes the most sense to deploy it:

1. You Have Sufficient Conversion Data

Smart Bidding performs best when Google has enough historical data to learn from. For Target CPA and Target ROAS, Google recommends at least 30 conversions (for CPA) or 50 conversions (for ROAS) in the past 30 days. If your account is still building data, consider starting with Maximise Conversions or Enhanced CPC.

2. You Want to Automate Optimisation

If you’re managing large campaigns or simply don’t have the time to manually adjust bids for each keyword, Smart Bidding can save you hours of work while still improving performance. Its real-time adjustments can far surpass the speed and precision of manual optimisation.

3. Your Goals Are Clear and Measurable

Smart Bidding requires a clearly defined objective. Whether you’re optimising for leads, sales, or a specific return on ad spend, having well-tracked conversions is essential. Without reliable tracking in place, the machine learning model won’t know what to optimise for.

4. You’re Running Dynamic Campaigns

For e-commerce sites, Smart Bidding works exceptionally well with Shopping and Performance Max campaigns. Google can use product data, user behaviour, and contextual signals to deliver ads to high-intent users more efficiently than a manual approach.

How to Set Up Smart Bidding

Setting up a Smart Bidding strategy is straightforward in Google Ads:

1. Log in to your Google Ads account.
2. Select a campaign and go to Settings.
3. Click on Bidding and choose Change bid strategy.
4. Select your desired Smart Bidding strategy (e.g., Target CPA or Maximise Conversions).
5. Set your targets if applicable, and save your changes.

Tips for Success With Smart Bidding

To get the most out of Smart Bidding, keep the following best practices in mind:

• Allow time for learning: Give the algorithm time to learn and adapt. Google recommends a learning period of at least 7–14 days before evaluating performance.
• Avoid frequent changes: Every time you alter goals, budgets, or targeting, the learning period resets. Keep changes minimal during the optimisation phase.
• Use portfolio strategies: These allow you to apply Smart Bidding across multiple campaigns, which can lead to better performance through data pooling.
• Set realistic targets: If your Target CPA or ROAS is too aggressive, the algorithm may struggle to find conversions. Start with achievable goals and adjust gradually.
• Monitor and report: Even though Smart Bidding is automated, keep a close eye on performance metrics and make strategic adjustments as needed.

Common Pitfalls to Avoid

While Smart Bidding can be powerful, it’s not foolproof. Here are some common mistakes:

• Relying on Smart Bidding without conversion tracking: If your conversion tracking is broken or inaccurate, Smart Bidding will optimise based on faulty data.
• Evaluating performance too soon: Results can fluctuate during the learning phase. Wait until the algorithm stabilises before making decisions.
• Over-segmenting campaigns: Too many small campaigns can limit the data available to Smart Bidding, reducing its effectiveness.

Conclusion

Smart Bidding can dramatically enhance your Google pay per click advertising performance—if used correctly. With its ability to make real-time, data-driven decisions at scale, it’s an essential tool for modern advertisers. Start with clear goals, ensure proper tracking, and be patient as the algorithm learns. Over time, Smart Bidding can not only save you time but also deliver better ROI and smarter, more efficient ad spend.

Whether you’re running lead generation, e-commerce, or brand awareness campaigns, incorporating Smart Bidding strategies will position your Google Ads efforts for long-term success.

For more information on Smart Bidding Strategies contact Click Return.

For information on Google Pay Per Click Advertising check out our PPC Marketing Services.
To obtain more information on our Search Engine Optimisation Consultants check out our SEO Services.
For information on Website Design and Build check out our website design packages.