Guide to Google Ads Automated Bidding Strategies

google ads automated bidding strategies

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Are you tired of constantly monitoring your Google Ads campaigns?

Are you looking to optimize the way you bid for keywords? Automated bidding in Google Ads may just be the solution for you.

In this article, we will delve into:

    • the different types and benefits of automated bidding strategies
  • how to choose the appropriate one for your campaign
  • the pros and cons of using automated bidding

Let’s get started!

What Is Automated Bidding in Google Ads?

Automated bidding is an ad auction system where Google automatically sets and adjusts bids on your behalf. In other words, you let Google’s automated system make decisions on how much to bid for each keyword.

Smart bidding uses machine learning to predict the success of your ads in the auction and targets desired outcomes like maximizing conversions or conversion value.

Automated bidding essentially takes the guesswork out of bidding and allows for optimization in real-time.

Benefits of Using Automated Bidding Strategies

1. Efficiency

Automated bidding software monitors and adjusts bids in real time, allowing the advertiser to optimize spending while minimizing waste.

2. Accuracy

Automated bidding algorithms use data-driven insights to predict the likelihood of a conversion and choose the optimal bid amount to achieve the desired result.

3. Cost-Effective

By using automated bidding, advertisers can reduce the cost per acquisition (CPA) as the algorithm optimizes bids to achieve the best possible result for each campaign.

4. Time-Saving

As the software monitors and optimizes bids 24/7, it saves advertisers a lot of time and effort, freeing up resources for other tasks.

5. Flexibility

Automated bidding allows advertisers to adjust bids based on data trends, such as changing consumer behavior or market conditions.

Overall, automated bidding optimizes online advertising campaigns for better results, increased ROI, and improved efficiency. 

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How Do I Choose the Right Automated Bidding Strategy for My Google Ads Campaign?


1. Campaign Goals

The first factor to consider when choosing an automated bidding strategy is your campaign goals. You need to identify what you are trying to achieve through the campaign.

2. Budget

The second factor to consider is your budget. Automated bidding strategies usually require a minimum budget, so you need to ensure that you have enough budget to implement the strategy.

3. Target Audience

The third factor to consider is your target audience. You need to ensure that your automated bidding strategy aligns with your target audience’s preferences and characteristics.

4. Competition Level

The fourth factor to consider is the competition level in your industry. If the competition is high, you may need to select a more aggressive bidding strategy to stay competitive.

5. Historical Performance

Another factor to consider when choosing an automated bidding strategy is your campaign’s historical performance. You need to review your campaign history to determine which strategy works best for your business.

6. Ad Format

Different automated bidding strategies work better for different ad formats. Depending on the type of ad you’re running, you may need to select a different bidding strategy.

7. Seasonality

Finally, the seasonality of your industry can also impact your automated bidding strategy selection.

For example, the strategy you use during the holiday season may be different than the one you use during the off-season. 

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Types of Google Ads Automated Bidding Strategies Available 

There are several types of automated bidding strategies in Google Ads. Some of them are:

  1. Target CPA 
  2. Target ROAS 
  3. Portfolio Bid Strategy
  4. Maximize Conversion Value
  5. Enhanced CPC

1. Target CPC 

Target CPA is a bidding strategy that automatically sets bids to help get as many conversions as possible at or below the target cost per acquisition (CPA) that you set.

It uses machine learning to gauge which auctions are more likely to lead to a conversion and then adjusts bids accordingly. It works best when you have historical conversion data for at least 15 conversions in the past 30 days.

2. Target ROAS 

Target ROAS (return on ad spend) is a bidding strategy that automatically sets bids to help get more conversion value or revenue at the target return on ad spend that you set.

It also uses machine learning to predict which auctions are more likely to lead to high-value conversions and adjust bids accordingly. Like Target CPA, it requires historical conversion data to work effectively.

3. Portfolio Bid Strategy

The Portfolio Bid Strategy is a new smart bidding strategy based on machine learning that automatically optimizes bids across multiple campaigns, ad groups, and keywords to achieve your overall business goals.

It allows you to set a target spend and a target return on ad spend at the portfolio level. Google’s algorithm then uses machine learning to identify and adjust bids where needed to achieve your goals.

4. Maximize Conversion Value 

Maximize Conversion Value is a smart bidding strategy that automatically sets bids to help you get the most conversion value within your budget.

It works by predicting which auctions are more likely to generate a high conversion value and bidding higher on those auctions.

It’s important to note that this strategy prioritizes getting high conversion values over achieving a specific return on ad spend.

5. Enhanced CPC 

Enhanced CPC (ECPC) automatically adjusts your manual bids for clicks that seem more likely to lead to a conversion on your website.

It increases your bid if it determines the click is more likely to lead to a conversion or lowers your bid if it determines the click is less likely to result in a conversion.

ECPC is designed to help improve conversions without exceeding your advertising budget. It should be used in combination with manual CPC bidding.

Pros and Cons of Using Automated Bidding in Google Ads


1. Time-Saving: Automated bidding saves marketers time that would otherwise be spent manually adjusting bids for different keywords and ad groups.

2. Increased Efficiency: Automated bidding algorithms can quickly and efficiently react to changes in the market, such as when your competitors adjust their bids.

3. Better Targeting: Automated bidding can help marketers better target their ads to the users who are most likely to convert, increasing the chances of a successful campaign.

4. Data-Driven Decision-Making: Machine learning models can analyze large amounts of data to determine the ideal bid for each ad auction, leading to more insightful and data-driven decision-making.


1. Limited Control: Automated bidding puts the control of the campaign’s bidding in the hands of the algorithm. While this can be beneficial, it can also mean the marketer has less control over their campaign.

2. Data Quality Issues: Often the algorithms require a sufficient amount of historical data before making decisions. This can lead to problems if the data is unavailable or of poor quality.

3. Hidden Costs: Although automated bidding can save time, it often comes at a cost. With some bidding strategies, such as Target CPA, there may be a higher cost-per-click bid, which may lead to a higher CPC cost.

4. Risk of Over-Reliance: Over-reliance on automated bidding can lead to a lack of understanding of the auction market. This can make it difficult for marketers to make informed decisions when automated bidding is no longer available.

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Well, folks, we’ve reached the end of the Ultimate Guide to Bidding Strategy in Google Ads.

And let me tell you, bidding is great – it’s like a round of poker with every dollar you spend on ads. But the real question is whether to go with automated bids or manual bidding.

Automated bidding offers convenience and ease, but be sure to weigh the pros and cons.

Yes, automation saves time, but it can also become a liability if left unchecked. So, if you’re feeling daring, go for bidding manually. But if you’re looking for the automation of bidding strategies on Google, go for it!

Just make sure to give Google the parameters it needs so your ads will show.

Whether you choose manual bidding or enhanced automation, Google Ads will automatically adjust your bidding strategy to use the best possible method for your campaign.

Google Ads offers plenty of options, but ultimately, it’s up to you to take advantage of Google’s target impression share strategy and show your ads to the right audience.

So go forth, bid wisely, and may the odds ever be in your favor. 

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