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SMART BIDDING · GOOGLE ADS AI BIDDING STRATEGIES

The right bidding strategy for every campaign goal

Smart Bidding refers to bidding strategies that use Google's AI to optimize for conversions or conversion value in every auction. Four strategies, four distinct goals — used correctly, they reduce costs and increase results.

SCHEDULE A STRATEGY CALL

Manual bids ignore real-time data from every individual auction moment

Manual CPC bids are set at a fixed rate and cannot account in real time for the 15+ signals Google evaluates at each auction — device, location, time of day, remarketing list membership, search query, browser, and more. The result: bids too high in low-conversion-probability moments, too low in high-probability ones.

Auction-time bids based on 15+ signals per impression

Smart Bidding sets bids individually for each auction using Google's AI and historical campaign data. According to Google, signals considered include: device type, physical location, location intent, day of week and time, remarketing list membership, ad characteristics, interface language, browser, operating system, and the actual search query.

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THE FOUR STRATEGIES

Smart Bidding — Strategies at a Glance

TARGET CPA

Maximizes conversions at a defined target cost per acquisition. According to Google's documentation, at least 30 conversions per month are recommended for accurate performance measurement. Individual conversions may exceed or fall below the target CPA.

TARGET ROAS

Maximizes conversion value at a defined target return on ad spend. For Search and Shopping campaigns, Google recommends at least 15 conversions in the past 30 days. For Demand Gen, the requirement is 50 conversions in the past 35 days.

MAXIMIZE CONVERSIONS

Gets as many conversions as possible within the set budget. No conversion target required — suited for campaign launches or when volume takes priority over a fixed CPA.

MAXIMIZE CONVERSION VALUE

Maximizes total conversion value within the set budget. Prioritizes higher-value conversions over pure conversion volume. Conversion values must be defined in tracking.

WHY AIM

Smart Bidding without clean conversion tracking is not Smart Bidding

All Smart Bidding strategies require functioning conversion tracking according to Google's documentation. AIM sets up conversion tracking correctly, defines target values per conversion type, and selects the bidding strategy that matches the available data and campaign goal — not by default, but based on the actual data situation.

Which strategy fits which goal

  • Target CPA: conversion volume at a fixed cost target
  • Target ROAS: revenue maximization at a defined return
  • Maximize Conversions: maximum volume within budget
  • Maximize Conversion Value: highest total value within budget
  • All strategies: conversion tracking is mandatory
  • Target ROAS: conversion values must be defined in tracking

The right bidding strategy is the difference between burning budget and scaling

We audit your conversion tracking, analyze your data volume, and recommend the bidding strategy that fits your campaign goal and your data situation.

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FAQ

Frequently Asked Questions

According to Google, Smart Bidding refers to bidding strategies that use Google's AI to optimize for conversions or conversion value in every auction — known as auction-time bidding. Manual bids are set at a fixed rate and cannot account in real time for the 15+ signals Google evaluates at each auction.

According to Google's documentation, at least 30 conversions per month is the recommended threshold for measuring performance with Target CPA. For Target ROAS, the benchmark is 50 conversions. For Search and Shopping campaigns using Target ROAS, Google's documentation states at least 15 conversions in the past 30 days as a requirement.

According to official Google documentation, Smart Bidding considers among others: device type, physical location, location intent, day of week and time of day, remarketing list membership, ad characteristics, interface language, browser, operating system, and the actual search query.

According to Google's documentation, Smart Bidding works with Search, Display, Shopping, Video Action, Demand Gen, Performance Max, and Hotel campaigns.

Maximize Conversions gets as many conversions as possible within the set budget — without specifying a target CPA. Target CPA also maximizes conversions but optimizes toward a defined average target CPA. Maximize Conversions is particularly suited to early campaign phases or when volume takes priority.

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