automated bidding · Google Ads smart bidding
Smart Bidding covers Google Ads' automated bid strategies (maximize conversions, target CPA, target ROAS): the algorithm adjusts every bid based on conversion probability. Its quality depends entirely on what you give it to optimize: it aims at what you measure, not at what you want.
A concrete example
An account that reports every thank-you page visit as a conversion optimizes toward the curious; the same account feeding signed quotes via offline import learns to target customers. Same budget, incomparable results.
Why it matters
Automated bidding has become nearly unavoidable, but it amplifies the quality of your measurement: good conversions make it formidable, bad ones make it ruinous. Before delegating your bids, fix the tracking and wire up real sales.
Frequently asked questions
- Target CPA or target ROAS?
- Target CPA if your sales have similar values (a lead is a lead), target ROAS if they vary widely (different order sizes) and you report the values. In both cases, set the target from your break-even point, not by gut feeling.
- Why did performance drop after a change?
- Automated strategies go through a learning phase after every significant change (target, budget, conversions). Avoid changes in bursts: one change at a time, then two to three weeks of stable data before judging.