Finding success with Smart Bidding

Pick the right bid strategy


Choose a strategy that aligns with your main business goal

Use different automated bidding methods to meet the different objectives of your campaigns.

Business Goal

Campaign Goal

Bidding Method

Increase sales, profit, or qualified leads Get as much conversion value as possible at a fixed budget or fixed return on ad spend     Maximize conversion value with optional target ROAS
Increase transactions or leads Get as many conversions as possible at a fixed budget or fixed cost per action Maximize conversions with optional target CPA
Increase website visitors Get as many clicks to your websites as possible with the given budget Maximize clicks
Increase or stabilize awareness Show at your desired location (e.g., top of page) and impression share in auctions Target impression share

Note

Enhanced CPC isn’t included here, but it can be used if you have specific reasons for setting manual bids and still want to take advantage of some degree of auction-time bidding. While it may not offer the full power of automated bidding like some other strategies, it can work with bids that you set yourself.

Optimize your ROI with Maximize conversion value or by setting a target ROAS

Since some conversions are worth more than others, we recommend that you report revenue or values associated with those conversions and then use a Maximize conversion value bid strategy and set a target ROAS (return on ad spend). On average, advertisers that switch their bid strategy from having a target CPA to a target ROAS can see 14% more conversion value at a similar return on ad spend.1

  • Set a target ROAS using the Maximize conversion value strategy if your goal is to achieve a desired ROAS across your campaign or portfolio of campaigns.
  • Use the Maximize conversion value strategy without a target if your goal is to drive as much conversion value as possible within a set budget.

Case Study

1StopLighting logo

1STOPlighting is a retail lighting store offering indoor and outdoor lighting fixtures, patio umbrellas, furniture, and more. They wanted to grow revenue while maintaining profits across multiple brands and product categories. After testing target ROAS bidding to optimize toward profit goals, the company saw a significant jump in performance. 1STOPlighting transitioned all of their shopping campaigns to bid towards a target ROAS and were able to increase profit by 214%.

If you value all conversions equally, then consider the following:

  • Set a target CPA using the Maximize conversions strategy if your goal is to maintain an average CPA across a campaign or portfolio of campaigns.
  • Use the Maximize conversions strategy without a target if your goal is to drive as many conversions as possible within a set budget.

Tip

Our advice for automated bidding for Shopping and Display campaigns is slightly different. Not all of these options are available.

Know when to use seasonality adjustments with Smart Bidding

Automated bidding does consider seasonality, but there are times when you may be able to provide additional information related to temporary conversion rate changes.

For example, if you’re running a sale or promotion, you might have an expectation for conversion rate increases that Smart Bidding wouldn’t capture immediately. This is when you should use seasonality adjustments.

Situation

Use seasonality adjustments?

You believe a major change in conversion rates will temporarily occur for 1-7 days for an unprecedented reason such as a promotion. 

Green checkmarkYes

You don’t expect conversion rates to change meaningfully, but instead expect your mix of users to change due to a seasonal period such as back-to-school time.

Red no iconNo, Smart Bidding will account for these changes

You expect the seasonal period to apply for more than 7 days. 

Red no iconNo, Smart Bidding will account for these changes

Next: Test your bid strategies

 

 

1. Google Internal Data, March 2021

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