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What is Smart Bidding?

Smart Bidding is Google Ads' machine-learning bidding system that automatically sets per-auction bids to optimize for a chosen conversion goal. It uses signals like device, location, time of day, audience, and historical conversion data to predict the probability and value of a conversion for every auction.

Source:Google Ads — About Smart Bidding ↗

What to know in practice

  • Available bid strategies: Target CPA, Target ROAS, Maximize Conversions, Maximize Conversion Value, Enhanced CPC.
  • Requires a conversion-tracking foundation. Without imported offline conversions, Smart Bidding optimizes against form-fills which doesn't predict revenue for most B2B accounts.
  • Learning phase: 7-14 days during which performance is volatile. Major changes (budget, target, conversion goal) restart the learning phase.
  • Recommended minimum: 30 conversions/month for Target CPA, 50/month for Target ROAS. Below those thresholds, manual CPC often outperforms.
Common misconception

Smart Bidding doesn't 'find' new customers — it predicts which existing auction-winners are most likely to convert at your target cost. It optimizes what you feed it. Feed it form-fills, it bids on form-fillers. Feed it revenue, it bids on revenue.

Related terms

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