Smart Bidding
Fast track (Summarised definition)
Smart Bidding uses machine learning to automatically optimise Google Ads bids for conversions. Benefits advertisers by processing multiple signals simultaneously, particularly effective during seasonal campaigns and across diverse geographic markets. Requires sufficient conversion data for optimal performance and integration with proper tracking systems.
Full lap (Full definition)
Smart Bidding represents Google's machine learning-powered automated bidding strategies that optimise for conversions and conversion value in real-time. For advertisers, Smart Bidding has become increasingly sophisticated, using hundreds of signals to make bid adjustments that human managers couldn't process manually, particularly valuable given diverse geographic and demographic markets.
Target CPA (Cost Per Acquisition) and Target ROAS (Return on Ad Spend) are the most commonly used Smart Bidding strategies among businesses. These strategies automatically adjust bids based on the likelihood of conversion, considering factors like device, location, time of day, demographics, and remarketing lists. Retailers particularly benefit during seasonal periods like Black Friday sales when search behaviour patterns shift dramatically.
Smart Bidding's effectiveness improves over time as the algorithm learns from campaign data. Businesses need sufficient conversion volume for optimal performance – typically 30+ conversions per month per campaign. Smaller businesses or those in niche markets may need to start with manual bidding before transitioning to automated strategies.
The integration with Google Analytics and other conversion tracking systems provides comprehensive performance insights. Advertisers can set different conversion values for various actions, allowing Smart Bidding to optimise for the most valuable customer interactions.
Regular performance monitoring remains essential, as algorithm changes and market dynamics can impact performance across different regions and industries. Advertisers should maintain some manual bidding campaigns for comparison and testing purposes while gradually expanding Smart Bidding implementation based on performance results.
Advanced Smart Bidding strategies include seasonality adjustments, data-driven attribution integration, and portfolio bidding across multiple campaigns to maximise overall account performance and return on advertising spend.