Smart Bidding: The Framework
Smart Bidding uses machine learning to optimize bids at auction time based on dozens of signals. But choosing the wrong strategy can stall your campaigns or blow your budget.
Maximize Conversions
Use this when your campaign is new, has fewer than 30 conversions per month, or you want to build data quickly. Without a target, Google will spend your entire daily budget to find any conversion it can.
Target CPA
Use this when you have 30+ conversions in 30 days and your primary goal is lead generation with a specific cost-per-lead target. Set your tCPA at 20-30% above your actual CPA to give Google room to learn.
Target ROAS
Use this when you run ecommerce with revenue values passed to Google Ads. Set tROAS conservatively at 200-300% and increase by 10-15% every two weeks as performance stabilizes.
Recommended Progression
Month 1-2: Maximize Conversions. Month 3: tCPA or tROAS. Month 6+: Aggressive tROAS targets with audience layering.