Smart bidding strategies represent Google’s sophisticated approach to automated bid management, using conversion-based or value-based systems that set unique bids for each individual auction. These strategies leverage machine learning to analyse vast amounts of real-time information available at auction time, including factors like time of day, specific ad content, user device, location, browser type, and operating system.
Google’s automated bidding has evolved significantly, moving beyond simple rule-based systems to complex algorithms that process hundreds of signals simultaneously. This approach allows for auction-level decisions that human bid management simply cannot match in terms of speed and data processing capability.
What we’ve observed at Ronin is that Smart Bidding strategies fall into several distinct categories, each serving different business objectives. Target CPA (Cost Per Acquisition) bidding focuses on acquiring conversions at your specified target cost, while Target ROAS (Return On Ad Spend) optimises for maximum conversion value within your desired return ratio.
Maximise Conversions bidding aims to generate the highest possible number of conversions within your budget, making it ideal for businesses focused on lead volume rather than cost efficiency. Enhanced CPC (Cost Per Click) provides a middle ground, adjusting your manual bids up or down based on the likelihood of conversion.
Recent analysis reveals that AI-driven bidding strategies like Performance Max and Advantage+ automate not just bidding, but also placement and creative selection. While this automation improves efficiency and often delivers better results, it reduces transparency and advertiser control over specific campaign elements.
From our perspective at Ronin, the effectiveness of Smart Bidding depends heavily on having sufficient conversion data for the algorithm to learn from. Google typically recommends at least 30 conversions in the past 30 days before implementing value-based bidding strategies. Without adequate data, these systems may struggle to optimise effectively.
Target Impression Share bidding serves different purposes entirely, focusing on visibility rather than conversions. This strategy proves valuable for brand awareness campaigns or when competing for specific high-value keywords where presence matters more than immediate conversions.
Portfolio bidding strategies allow you to optimise across multiple campaigns simultaneously, sharing learnings and budget allocation between related campaigns. This approach works particularly well for businesses with diverse product lines or multiple service offerings that share similar customer profiles.
Our clients at Ronin achieve best results when we align bidding strategies with specific business goals and campaign maturity. New campaigns often benefit from starting with Maximize Clicks to gather initial data, then transitioning to conversion-focused strategies as performance history develops.
The key lies in understanding that Smart Bidding strategies require ongoing monitoring and adjustment. While automated, they’re not “set and forget” solutions. Regular performance analysis and strategic refinements ensure these powerful tools deliver optimal results for your specific business objectives.
