Google has a number of automated bidding features that can be used by beginner or novice Google Ads users.  The question we are often asked is, should I hand over control of my ad budget to Google?  Let’s take a look ….

What exactly is Smart Bidding?

In Smart Bidding, Google uses machine learning to create a set of automated bid strategies to maximize conversions. Using historical and contextual data, Google’s algorithm increased bids based on the likelihood of a conversion.

The 5 Different Smart Bidding Strategies
  1. Maximize Conversions
  2. Target ROAS (return on ad spend)
  3. Target CPA (cost-per-action)
  4. Target impression share
  5. Enhanced CPC (cost-per-click)

If you are currently using Smart Bidding you would have seen a recommendation to switch your keywords to broad match.  Google’s most recent research has indicated that (with Target CPA strategy) when coupled with broad match keywords, Smart Biding will help save time and improves campaign performance. They are saying that you can expect to see about 25% more conversions by changing “phrase match” and +broad +match +modifier keywords to broad match in Target CPA campaigns.

3 Ways To Achieve Your Marketing Objectives With Smart Bidding

• User’s search context is used to set the bids for each auction. In real-time, Smart Bidding recognizes conversion opportunities and automatically sets the optimal bid accordingly.
• Adjustments are made for meaningful interactions using cross-signal analysis
• The bidding algorithm measures all conversion actions that are valuable to your business and adjusts your bid strategy by continuously adapting to changes in performance.

Signals available with bid adjustments and examples of exclusive signals for Smart Bidding

image via Google

Check out Google’s guide to Setting Smarter Search Bids:

Best Practices logoIn this guide, they take you behind the scenes and walk through how Google Ads automated bidding and Smart Bidding work. You’ll learn what signals are used, how bids are calculated, and what you can do to improve performance.


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