Google Ads Smart Bidding Strategies

google ads smart bidding

When you get started with Google Ads, bid strategies might seem complex. There are plenty to choose from, especially when you create your first campaign. We cover Google Ads smart bidding strategies below, which have become a best practice when you set-up your campaigns. If you view the video and read the corresponding, you will understand how to use bid strategies and select the best one for your business.

Google Ads Smart Bidding


Google Ads Smart Bidding Strategies

At the time of writing this article and creating the video above, there are 4 smart bidding strategies. A bidding strategy is considered ‘smart’ if it is automated and uses machine-learning to optimize for conversion goals. If you are not using conversion tracking, you won’t be able to use these bidding strategies through Google Ads.

  1. Target ROAS (Return On Ad Spend)
  2. Target Return on Ad Spend is a bidding strategy that optimizes for conversion value. It will use your previous conversion data and campaign data to optimize your campaign for a specific percentage return on your advertising spend.

    target roas bid strategy

    If you create a campaign for an ecommerce store, you want to use import your conversions and conversion value for tracking, and then use the Target ROAS bid strategy. If you are spending $10 per day for example, you can optimize for a 200% Return on Ad Spend (ROAS) so for every $10 you spend, your campaign returns $20 in revenue.

  3. Target CPA (Cost-Per-Acquisition)
  4. Target Cost-Per-Acquisition is a bidding strategy that optimizes for conversions at a specific cost. Google Ads will use your conversion data and you can set your Target CPA when you are setting up your bidding strategy. For example, if a conversion is worth $50 for your business, you want to set a Target CPA that is lower than the worth of your conversion. Therefore, you can drive optimal conversions for your business.

    target cpa bid strategy

    In my experience, you can lower your Target CPA over time as you get more campaign data and test your ads, keywords, audiences, ad extensions, and more while optimize your Google Ads campaign.

  5. Maximize Conversions
  6. When you first create your campaign and you start driving some conversions, you might want to use the Maximize Conversions bidding strategy. It works exactly as it sounds: Google Ads will use all the data they have about your campaign to maximize the conversions you drive within your budget.

  7. Enhanced CPC (ECPC)
  8. Last but not least, the Enhanced Cost-Per-Click bidding strategy will increase your bids when conversions are more likely. In addition, it will decrease your bids when conversions are less likely. If you prefer to have a lot of control over your Cost-Per-Click, then Enhanced CPC can be useful. However, you are better off in my experience using one of the bidding strategies above because you can set Max CPC bids and still use the other Google Ads smart bidding strategies.

In Summary

Smart bidding is a feature that continues to improve through Google Ads. I’d highly recommend using Target CPA or Target ROAS if you are able to, as they work the best to drive conversions in my experience. If you have any questions or comments, please leave them in the comments section.

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