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Bidding is the key to any successful Google Ads campaign. It directly affects how visible your ads are and the performance of the campaign itself.

Ad auction bidding is a big challenge to manage, especially if you have a large number of campaigns keywords and phrases, multiple match types (Broad, Exact and similar).

For this reason, many who advertise on the Google Ads platform choose automatic bidding. In addition to automatic, there is standard, where you determine the bid amount.


Google Ads Automatic Bidding

Automatic bidding is a solution that allows you to automatically place bids based on your set goals. It uses machine learning to optimize for conversions or conversion value.

It offers 3 possibilities:

  1. Real bidding at auction time
  2. Adaptive learning at the query level
  3. Rich user signals and analysis


Automatic bidding strategies

Google Ads offers several automatic bidding campaign strategies.


Conversion-based Smart Bidding:

  1. Maximize conversions – to get as many conversions as possible within a fixed budget
  2. Specific cost per conversion, Target CPA - to achieve as many conversions as possible within a specific cost per action
  3. Increase conversion value - to achieve the highest possible conversion value within a fixed budget (if there are several different products, conversion types, not all are worth the same)
  4. Target return on advertising costs - to achieve the highest possible conversion value within the target return on advertising costs.


Awareness-based bidding strategies:

  1. Maximize clicks, to get the most clicks for a given budget
  2. Ad Impression Share, for displaying ads at the absolute top of the page, at the top of the page, or anywhere on the Google search results page


Smart Bidding uses Google's machine learning technology and continuously updates its bidding algorithms to match changes in campaign performance.


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Made by Nemanja Nedeljković – Senior Account Manager @Digitizer

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