7 Smart Bidding Strategies for Google Ads

Google Ads' Smart Bidding leverages artificial intelligence to optimize your campaigns in real-time. Here are the top 7 strategies that can transform your advertising performance:

• Maximize Conversions: Get the highest number of conversions possible by utilizing your entire budget.
• Target CPA (Target Cost Per Acquisition): Control your costs by setting a target CPA.
• Target ROAS (Target Return on Ad Spend): Maximize the value of conversions while achieving a specific ROI.
• Target Impression Share: Ensure optimal visibility in search results.
• Enhanced CPC (Enhanced Cost Per Click): Combine manual adjustments and automation to maximize conversions.
• Seasonal Adjustments: Adapt your bids during peak conversion periods for short durations.
• Performance Max Campaigns: Leverage all Google channels to maximize your results.

These strategies can reduce campaign management time (by up to 40%) while increasing performance. For example, companies like Nespresso reported a 25% increase in online sales thanks to Target ROAS.

Tip: For optimal results, ensure you have reliable conversion data and adjust your goals based on historical performance.

1. Maximize Conversions

Main Objective

The Maximize Conversions strategy has a clear goal: to achieve the highest number of conversions possible by utilizing the entire daily budget available [1]. Unlike approaches that focus on profitability, this method does not consider the unit cost of each conversion. The algorithm focuses solely on identifying conversion opportunities, even if this leads to an increase in cost per conversion [1].

Automated Functioning

This strategy relies on a high degree of automation thanks to Google's Smart Bidding. The algorithm adjusts bids in real-time based on a massive analysis of contextual signals, such as the device used, location, time, browser, language, or user intent [2] [5]. For example, a Swiss retailer specializing in sports equipment reduced its cost per acquisition by 20% while increasing total conversions. How? By allowing the algorithm to optimize bids for mobile users close to its physical stores during peak hours [5].

Ideal for E-commerce

This strategy is particularly effective for e-commerce merchants looking to quickly sell off inventory or increase market share, without immediately focusing on profitability per transaction [1]. It is also suitable for launching new products, where the goal is to capture as many customers as possible in a short timeframe. Since July 2022, it has been possible to add a Target CPA (target cost per acquisition) to this strategy, allowing for limiting the cost per conversion while seeking to maximize volume [1].

Points to Monitor

One of the main challenges of this strategy is the lack of control over profitability. If no Target CPA is defined, the algorithm can consume the entire budget, even if the cost per conversion becomes high [1] [11]. Additionally, all conversions are treated equally, with no distinction between a €50 order and a €500 one [2]. To avoid unpleasant surprises, it is advisable to have at least 30 conversions over a 30-day period before activating this strategy. This ensures the algorithm has a sufficient volume of data to learn effectively [10]. Finally, monitor your daily spending, as the algorithm consistently uses the entire budget [11]. The next strategy introduces an approach that incorporates cost constraints to balance objectives.

2. Target CPA

Optimization Objective

The Target CPA (target cost per acquisition) strategy aims to maximize conversions while adhering to a predefined CPA [2] [6]. Unlike the "Maximize Conversions" strategy, this one imposes a strict budget constraint. Since 2024, Target CPA is no longer available as a standalone strategy in Google Ads. It is now integrated as an option within "Maximize Conversions" [8]. Let’s see how automation plays a role in bid optimization.

AI Automation Level

This strategy relies on Smart Bidding, which uses artificial intelligence to adjust bids in real-time. The algorithm analyzes various contextual signals, such as device type or location, to predict conversion chances [2] [5]. For example, it may increase bids for a mobile user near a store during peak hours and reduce them for less relevant searches [5]. This automation could reduce the time spent on manual campaign management by up to 40% [5].

Ideal Use Case for E-commerce

For e-commerce, Target CPA offers tangible benefits, especially for businesses that need to closely monitor their margins or have a limited budget [5]. It is also effective for generating leads, such as sign-ups or account creations [8]. For instance, a Swiss SME specializing in sports equipment used Target CPA with Smart Bidding in 2024. The algorithm increased bids for mobile users close to the store during peak traffic periods while reducing them for searches made on a computer late in the day. The result: a 20% decrease in CPA and an increase in total conversion volume [5]. To go even further, tools like those from Feedcast allow for centralized and optimized campaign management.

Potential Limitations

However, this strategy is not without challenges. One of the main ones is defining a realistic target CPA. A target that is too low, compared to historical data, can lead to a drop in traffic and performance [8]. Additionally, Target CPA treats all conversions uniformly, which can be problematic for sites offering products with significant price differences [8]. The algorithm also requires a learning phase of 2 to 4 weeks during which it is advisable to avoid any major changes [13]. Finally, advertisers transitioning from Target CPA to Target ROAS often see an average increase of 14% in conversion value while maintaining a similar return on investment [2] [12].

3. Target ROAS

Optimization Objective

The Target ROAS (target return on ad spend) strategy seeks to maximize conversion value while achieving a specific return on investment [2][3]. Unlike Target CPA, this method distinguishes conversions based on their value. As Google points out:

Not all conversions are equal – some are worth more than others. Measuring conversion values and then bidding based on them helps you find more valuable customers [2].

This approach is particularly well-suited for the e-commerce sector, where shopping cart amounts can vary significantly.

AI Automation Level

Once the objective is set, the algorithm activates in real-time. This strategy relies on optimization at each bid, where AI adjusts bids by analyzing various signals such as the search query, the device used, or the location [2][5]. This automation allows targeting users most likely to generate high-value purchases, rather than simply aiming for a large number of low-value conversions [2]. The strength of Target ROAS lies in its ability to prioritize the most profitable conversions based on their value.

Ideal Use Case for E-commerce

Target ROAS is particularly effective for multi-product catalogs with varying prices and margins [14]. For example, the company 1STOPlighting, specializing in lighting, used Target ROAS on its Shopping campaigns to improve profitability. The results speak for themselves:

A 214% increase in profit while maintaining good performance across multiple brands and product categories [3].

On its part, Nespresso recorded a 25% increase in direct purchases thanks to AI-optimized Search campaigns incorporating Target ROAS [2]. To make the most of this strategy, Google recommends combining Target ROAS with broad match keywords and responsive ads [3]. Tools like Feedcast (https://feedcast.ai) further facilitate optimization by automatically enriching product data and managing bids across multiple channels. These examples demonstrate how Target ROAS can transform performance in various e-commerce scenarios.

Potential Limitations

For this strategy to work effectively, a sufficient volume of historical conversion data is necessary [3]. Google advises having at least 50 conversions in the last 30 days [10][11]. An overly ambitious ROAS target can also limit the algorithm, causing a significant drop in traffic and conversion volume [2][9]. Moreover, accurate tracking of conversion values is essential: if the data is incorrect, the algorithm will not be able to optimize the return on investment correctly [2][9]. Finally, as with Target CPA, a learning period is essential before achieving optimal results. The next strategy explores an approach focused on visibility rather than direct conversions.

4. Target Impression Share

Optimization Objective

The Target Impression Share strategy focuses on visibility rather than conversions or return on ad spend (ROAS) [2][9]. Its goal? To ensure a specific presence in Google search results, whether at the absolute top, at the top of the page, or simply somewhere on the page [2]. Here’s how Google describes it:

Smart Bidding offers true optimization at the time of bidding. It sets bids for each individual auction, not just a few times a day [2].

In practice, the algorithm adjusts bids based on contextual signals to ensure optimal visibility at the chosen position.

AI Automation Level

With this strategy, automation works in real-time, adjusting bids for each auction [2][9]. The goal is to achieve the desired impression share percentage on specific keywords, without manual intervention.

Ideal Use Case for E-commerce

This strategy is particularly useful in specific cases in e-commerce. It is ideal for:

• Brand protection campaigns: Ensure your online store consistently appears at the top of results when a user searches for your brand name [11].
• Product launches or entering new markets: When the primary goal is to increase brand awareness [2].

However, for campaigns where profitability is a priority, strategies like Target ROAS or Maximize Conversion Value are more suitable [10][11].

Potential Limitations

The main downside of this approach is its high cost [11]. Unlike more conversion-oriented strategies like Target CPA or Target ROAS, Target Impression Share can lead to very high bids simply to ensure visibility, without considering conversion chances [10][11]. If not well-controlled, this strategy can quickly deplete your budget.

To avoid this, Google recommends setting a max CPC (maximum CPC bid) to limit overbidding [11]. This strategy is particularly relevant in sectors where immediate visibility is crucial, such as for emergency services (locksmiths, emergency veterinarians), where being the first visible result is far more important than the cost per click [11].

5. Enhanced CPC

Optimization Objective

Enhanced CPC (or eCPC) is a hybrid solution that combines manual bid control with a touch of automation. This strategy allows you to adjust your base bids to maximize conversions or their value while maintaining some control [11]. You set an initial bid for each keyword or ad group, and then Google's algorithm intervenes to adjust these bids in real-time, focusing on clicks most likely to convert [2].

AI Automation Level

With eCPC, the level of automation remains limited. Google's artificial intelligence evaluates in real-time a multitude of contextual signals, such as the search query, the device used, the browser, or the language [2][5]. However, these adjustments are made within the limits of the maximum bid you have set, allowing you some control [11].

Ideal Use Case for E-commerce

eCPC is particularly useful for online stores looking to explore automation while keeping an eye on their spending [3]. To make the most of it, it is crucial to rely on reliable conversion data and to pair it with broad match keywords and responsive ads [3]. This method serves as an intermediate step, ideal before transitioning to fully automated strategies like Target CPA or Target ROAS.

Potential Limitations

Despite its advantages, eCPC requires frequent manual adjustments to remain competitive. If your base bids are too low, your ads may lose visibility, especially in a context where Google increasingly favors fully automated strategies [11].

6. Seasonal Adjustments

Optimization Objective

Seasonal adjustments are designed to anticipate and take advantage of conversion spikes during short-term sales events. The idea is simple: maximize ROAS and conversion value by adjusting your bids to match the temporary increase in purchase intent [5]. Unlike fully automated strategies, this method requires manual intervention to signal to the algorithm a short-term variation that historical data cannot predict. Let’s see how automation can facilitate these real-time adjustments.

AI Automation Level

Even with these adjustments, the level of automation remains very high. Smart Bidding continues to analyze billions of signals in real-time [5]. Seasonal adjustments complement this system: you inform the AI of a predicted temporary increase in