Understanding Google Ads Smart Bidding: The Benefits Of It All

Google advertising

Over the recent years, Google has undeniably brought about new machine learning features which are popular and well-known tools used for advertising purposes. However, the greatest challenges lie in organizing and managing these ad campaigns as they can be time-consuming and a little more complex than it seems.

Google Ads Smart Bidding is one such tool that aids you to optimize your bids in order to maximize conversions, as it taps into Google’s massive bank of user data. But, the question here is, would you really allow Google to take control over your ad budget?

Well, in order to figure out this theory, let us get a clear picture of what exactly is Smart Bidding!

Understanding Google Ads Smart Bidding:

Smart Bidding with Google ads are automated bidding strategies that use machine learning to improve or maximize conversions so that your ad is able to reach a specific goal. So what does Google do here, in order to achieve this?

Google taps into the historical search behavior of your ads and predicts whether it is likely to be a conversion and then goes on to enhance the bids when a conversion is more or less going to take place.

The Type of Bidding Strategies:

Well, there are quite a few types of bidding strategies and each of these types has a particular conversion goal. These are powerful and look into all the ad works for you as a campaigner.

Maximize Clicks or Conversion

This type automatically adjusts your bids in order to receive as many clicks as possible as per your ad budget. It is a standard strategy that is primarily used for a single campaign that allows search and display ads. This strategy helps increase the overall traffic to the website.

Target CPA

This is yet another strategy that is used for either search or display ads. It sets the bid in accordance to receive as many conversions as possible, within the target cost that has been set. Hence, this method looks into an increased number of conversions while keeping the cost per click lower.

Target ROAS

In Target ROAS particularly the ad campaign is set to automatically optimize return-on-ad-spend. This elucidates that the focus is more on optimizing return or revenue amount. Here, Google Ads predicts the future conversion and consequently sets the cost-per-conversion so as to maximize the value return.

Target Impression Share

Here, Google Ads sets bids to display the ads at the top of the page as many times as possible.

Enhanced CPC

This type helps you to optimize the maximum click per cost to increase conversion efficiency.

The Benefits of Smart Bidding

Although Google Ads Smart Bidding is a powerful optimization strategy, it is always not good news. Discussed below are some pros and cons of smart bidding, which you need to be aware of before you head-on with it.


Smart bidding is more time-efficient.
It enables you to ‘set and forget’ campaigns which help in managing and organizing. You need not be at it all the time.
Most of the work is done by Google and you do not need to be at it to work on it all the time.
Allows for niche marketing and opens doors for smaller businesses.

Smart Bidding really works out well for small businesses., specifically for those who do not have the technical knowledge on how to optimize bids. Hence, to conclude, Smart Bidding helps to create brand awareness, increase the overall traffic to the website and also increase conversions.

Leave a Reply