Smart Bidding Best Practices

Table of Contents

Google Ads Smart Bidding Best Practices

Smart Bidding combines an exclusive set of signals to set real-time bids for each and every auction to help you achieve your business objectives.

In this blog, Smart bidding best practices; you’ll learn how to choose a bidding strategy and optimize your campaigns with Smart Bidding.

First, let’s go over the different bidding strategies based on business goals:

Google Ads Bidding Strategies Explained smart bidding best practices Smart Bidding Best Practices
Google Ads – Bid Strategies

Maximize Conversions & Maximize Conversion Value

Maximize conversions drives as many conversions as possible within your set budget.

On the other hand, the newly launched Maximize conversion value for Search helps you drive as much conversion value as possible within your budget.

Maximize Conversion Vaule and Maximize Conversions Bidding Strategy

Both bidding strategies are best for advertisers who don’t have a target CPA or ROAS in mind and don’t require any conversion data to get started.

Target CPA & Target ROAS

Target CPA will set bids to help you get as many conversions as possible at or below your target cost-per-action. While, Target ROAS will drive the highest conversion value possible while achieving your target return on ad spend.

Target CPA & Target ROAS

Both bidding strategies are a good fit for advertisers who want to achieve a certain target.

Keep in mind that Target ROAS for Search and Display campaigns requires a minimum of 15 conversions in the last 30 days.

Target CPA - Minimum Conversions Requirement

For Smart Shopping campaigns, there’s no conversion minimum requirement to use Target ROAS.

  • Confirm that the right conversions have been included in the Conversions column by checking the Conversion action page in your account. This is important since Smart Bidding will optimize your campaign based on these conversions.
  • Add first-party audience lists to each campaign, like RLSA, Customer Match, and Similar audiences, to reach customers who are already interested in your business.
  • Use broad match as the keyword match type to expand the scope of search queries.
  • Try a portfolio bidding strategy if your campaigns have similar goals or low conversion volume, in order to drive budget optimizations.
  • When evaluating performance, don’t forget to look at the portfolio level instead of the campaign level.

Attribution Model to Choose

Use data-driven attribution, or if not eligible, use non-last-click attribution to let Smart Bidding accurately assess the different touchpoints throughout the customer journey.

List of Google Ads Attribution Models

Once your campaigns are up and running, you can analyze how key metrics have performed through the bid strategy report.

Now let’s go over some tips to help you grow your conversion volume and conversion value.

If you’re using Maximize conversions or Maximize conversion value, you can get more conversions or conversion value by increasing your budgets or broadening your campaign targeting.

If your Target CPA or Target ROAS campaign is budget-constrained, think about increasing budgets to capture the full opportunity, while still achieving your targets.

If your Target CPA or Target ROAS campaign is achieving your goals and not budget-constrained, you can optimize your campaigns by relaxing your targets and/or broadening your targeting.

You can broaden your targeting by adding first-party audience lists, changing your keyword match type to broad match, using Dynamic Search ads, and adding new keywords.

Finding success with Smart Bidding: Google Best Practices

  • Take advantage of auction-time bidding with Google Ads. Bid to the user’s auction-time context via Smart Bidding.
  • Manage bids more efficiently in Google Ads. Visit Google Ads Bidding Strategies to learn about all available options.
  • Pick the right bid strategy, considering the context & Relevancy.
  • Align your campaign settings with automated bid strategies, follow best practices by visiting the Google ads recommendations tab.
  • Test your automated bid strategies before you implement them.

FAQ’s Smart Bidding

How does smart bidding work?

Smart Bidding uses machine learning to optimize your bids to maximize conversions and conversion value across your campaign or bidding portfolio. Target CPA, Max Conversions, Target ROAS, and Enhanced CPC are all Smart Bidding strategies.

What is smart bidding?

Smart Bidding is a subset of automated bid strategies that use machine learning to optimize for conversions or conversion value in each & every auction—a feature known as “auction-time bidding”.

What biding strategy should you use?

Select a bidding strategy based on Campaign goals. For example, if the goal is to get a conversion at a certain cost - you might want to try “Target CPA”. If your campaign goal is to drive as many clicks possible, you might want to use Maximize clicks and provide CPC limit.

Why would you choose automated bidding instead of manual bidding?

Given the dynamic nature of Google's auctions, the appropriate bid can often be a moving target that's challenging to reach at scale when using manual bidding. Whereas enabling automated bidding strategy allows Google’s AI and Machine learning capabilities to get the most of your budget and scale.

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