Smart Bidding is a feature available through Google Ads that uses your Google Ads conversion tracking data to get you more conversions at a lower cost. It achieves this by optimizing your placement in each ad auction to avoid unprofitable clicks and get you as many profitable clicks as possible for your campaign.
Benefits of implementing Smart Bidding:
- Increased profits: Gets you more conversions at a lower cost.
- Ease of use: Smart Bidding is an automated bid strategy that is easy to set up and requires you to spend less time managing bids. Thus, making it easier for you to use Google Ads.
- No additional charge: No extra fees or new interfaces to learn.
Smart Bidding works best for advertisers who aim for conversions and direct-responses. Advertisers need to install conversion tracking for Smart Bidding to work.
For display campaigns, Smart Bidding can help improve performance by using data from conversion tracking to determine where your ads are likely to get conversions. Smart Bidding will automatically calculate the optimal equivalent cost-per-click (CPC) bid for your ad each time it's eligible to appear on a Display Network site. You still pay per click, but you no longer need to adjust your bids manually to reach your cost per acquisition (CPA) goals and can benefit from improved return on investment (ROI). This in turn can help you save time and maximize your conversions.
Learn more about Smart Bidding.