Smart Bidding
Google Ads automated bidding strategies that use machine learning to optimise bids for conversion goals.
Full definition
Smart Bidding is a subset of Google Ads automated bidding that uses machine learning to optimise bids at auction time based on dozens of real-time signals — including device, location, time of day, search query, browser, and more. Smart Bidding strategies include: Target CPA (set a target cost per acquisition), Target ROAS (set a target return on ad spend), Maximise Conversions (spend budget to get as many conversions as possible), and Maximise Conversion Value (maximise total conversion value within budget). Smart Bidding requires sufficient conversion data (typically 30–50 conversions per month minimum) to learn effectively and outperform manual bidding.
Real-world example
An online retailer switches from manual CPC to Target ROAS bidding at 400%. Google's algorithm adjusts bids in real time, achieving a 420% ROAS compared to 310% with manual bidding.
Related terms
A metric measuring revenue generated for every pound or dollar spent on advertising.
Read definitionThe average cost spent on advertising to acquire one customer or conversion.
Read definitionThe real-time process search engines use to determine which ads appear for a given query and in what order.
Read definitionThe process of measuring specific user actions — purchases, sign-ups, calls — that represent business goals.
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