How to Use Smart Bidding in Google Ads?
When running a Google Ads campaign, every marketer faces the same question: how do I maximize my ROI while minimizing wasted ad spend? Enter Smart Bidding in Google Ads—a game-changer for marketers and business owners looking to take the guesswork out of bidding.
But what exactly is Smart Bidding? And how can you use it to unlock better campaign performance? In this blog, we’ll walk you through what Smart Bidding is, showcase 10 Smart Bidding strategies with examples, and explain how these strategies can transform campaigns across industries.
What is Smart Bidding in Google Ads?
At its core, Smart Bidding is Google Ads’ suite of automated bidding strategies that use machine learning to optimize for clicks, impressions, conversions or conversion value. By analyzing vast amounts of data at auction time, Smart Bidding adjusts bids dynamically to increase your chances of achieving specific campaign goals.
Key Features of Smart Bidding
- AI-Powered Optimization: Uses Google’s advanced algorithms to predict the likelihood of a conversion.
- Auction-Time Bidding: Adjusts bids in real-time, considering user signals like device, location, time, and more.
- Custom Goals: Aligns with goals such as maximizing conversions, increasing revenue, or hitting a target return on ad spend (ROAS).
Why Smart Bidding Matters?
Smart Bidding isn’t just about convenience—it’s about results. Here’s why businesses should consider using it:
- Saves Time: No more manually adjusting bids for every keyword.
- Improves Efficiency: Allocates budget to high-performing keywords in real-time.
- Scales Performance: Perfect for growing businesses with diverse campaign goals.
Whether you’re running Google Ads for ecommerce or lead generation, Smart Bidding offers tailored strategies to fit your needs.
10 Smart Bidding Strategies and Examples
1. Maximize Conversions
If your goal is to drive as many conversions as possible within a set budget, this strategy is for you. Google’s algorithm uses historical data and user signals (like device, time of day, and location) to bid higher for users more likely to convert.
Example: A local HVAC company might use Maximize Conversions to promote seasonal discounts on air conditioning services. By targeting homeowners searching for “AC repair near me,” they could increase lead volume without exceeding their budget.
Why It Works:
- Prioritizes conversion-heavy keywords, ensuring more bang for your buck.
- Ideal for campaigns focused on lead generation or e-commerce sales.
Pro Tip: Ensure conversion tracking is accurately set up before using this strategy, as the algorithm relies on this data to make bidding decisions.
2. Target ROAS (Return on Ad Spend)
Target ROAS is a sophisticated strategy that adjusts bids to achieve a specific return on ad spend. Google prioritizes clicks and conversions that meet your revenue goals, helping you scale campaigns efficiently.
Example: An e-commerce brand selling outdoor furniture might set a ROAS target of 400%. Smart Bidding will then focus on high-value keywords like “luxury patio sets,” driving higher sales for every dollar spent.
Why It Works:
- Ensures you’re getting profitable results from your ad spend.
- Perfect for businesses with a clear understanding of their margins.
Pro Tip: Start with a conservative ROAS target and adjust based on performance data to avoid stifling reach. Make sure ROAS tracking is accurate.
3. Maximize Clicks
This strategy ensures you get as much traffic as possible within your budget, making it ideal for top-of-funnel campaigns. It’s especially useful when you’re building awareness for a new product or service. It’s also great if you don’t have conversion data, and want to build up conversion volume before testing a conversion-based bid strategy.
Example: A tourism board promoting local attractions might use Maximize Clicks to attract travelers searching for “best places to visit in [city].”
Why It Works:
- Drives awareness by prioritizing volume over immediate conversions.
- Great for industries like tourism and automotive that benefit from extensive research by potential customers.
Pro Tip: Pair Maximize Clicks with relevant ad copy and landing pages to convert traffic into leads or sales. Once you have a good volume of conversions, switch to a conversion strategy to get leads and sales flowing.
4. Enhanced CPC (Cost-Per-Click)
Enhanced CPC adds a layer of AI to manual bidding. It increases or decreases your bid based on the likelihood of a conversion while still giving you control over base bids.
Example: A construction company bidding on “commercial roofing services” might use Enhanced CPC to target high-intent users. The strategy can lead to a boost in quote requests while keeping CPC within budget.
Why It Works:
- Balances automation and manual control.
- Helps campaigns that require precise targeting without sacrificing performance.
Pro Tip: Use Enhanced CPC as a stepping stone to fully automated strategies like Target CPA or ROAS.
5. Maximize Conversion Value
For businesses with varying product or service values, this strategy focuses on driving the highest possible return from your budget.
Example: A SaaS company offering tiered pricing plans might use this strategy to prioritize keywords for bigger deals like “enterprise CRM software,” leading to an increase in high-value subscriptions.
Why It Works:
- Focuses on revenue rather than just conversion volume.
- Perfect for businesses with premium offerings.
Pro Tip: Ensure accurate value tracking is set up in Google Ads to maximize the effectiveness of this strategy.
6. Target Impression Share
If dominating the top of the search results is your priority, Target Impression Share is the way to go. This strategy ensures your ads appear in prominent positions for high-priority keywords.
Why It Works:
- Boosts brand visibility in competitive markets.
- Ideal for campaigns where top-of-mind awareness is key.
Pro Tip: Use this strategy sparingly, as it can lead to high CPCs if overused.
7. Maximize Conversions With Target CPA (Target Cost Per Acquisition)
Target CPA helps you acquire leads or customers at a specific cost. Google adjusts bids to maximize conversions while staying within your target CPA.
Example: A pest control company targeting “termite treatment services” might set a $50 CPA target. Smart Bidding will then try to reduce their average CPA from $70 to $48, increasing leads without inflating costs.
Why It Works:
- Ensures you stay profitable while scaling lead volume.
- Ideal for businesses with a clear understanding of their customer acquisition costs.
Pro Tip: Monitor your CPA targets regularly to ensure they align with changing campaign goals and market conditions. Setting too low will limit impression share, while setting too high will sacrifice campaign efficiency.
How to Get Started with Smart Bidding?
- Define Your Goals: Decide whether you’re optimizing for conversions, ROAS, or traffic.
- Choose the Right Strategy: Align your goals with the appropriate Smart Bidding strategy.
- Monitor and Adjust: Use performance reports to tweak targets and improve results.
Common Misconceptions About Smart Bidding
- “It’s Completely Hands-Off”
While automated, Smart Bidding still requires monitoring and adjustments for optimal results. - “It’s Only for Big Budgets”
Smart Bidding works just as well for small businesses using advertising platforms for small businesses. - “It Eliminates All Risk”
While Smart Bidding minimizes inefficiencies, careful campaign setup is still essential.
Pro Tip: Try Using Broad Match Keywords with Smart Bidding
Broad Match keywords are often overlooked due to their potential to attract irrelevant clicks. But when paired with Smart Bidding, they can uncover unexpected high-performing keywords.
Why It Works:
- Expands your reach while maintaining relevance through real-time bid adjustments.
- Ideal for discovering new keyword opportunities in competitive industries.
Final Thoughts
Smart Bidding in Google Ads is a powerful tool for marketers and business owners across industries. Whether you’re running Google Ads for ecommerce or lead generation, the right Smart Bidding strategy can transform your campaigns.
From maximizing conversions to scaling revenue, these strategies offer something for every goal. Ready to see the difference Smart Bidding can make? Start experimenting today.
Have questions about which Smart Bidding strategy is right for your business? Get in touch with our team, we’d love to chat.