Smart Bidding (Google Ads)

Smart Bidding is the category of Google’s automated bid strategies that use machine learning to optimize for conversions or conversion value in each auction. Smart Bidding strategies include Target CPA (aiming for a specific cost per conversion), Target ROAS (aiming for a specific return on ad spend), Maximize Conversions (getting as many conversions as possible within budget), and Maximize Conversion Value (getting the highest total conversion value within budget).

These strategies analyze signals like device, location, time of day, audience, and search query to adjust bids in real-time. Google recommends having at least 30 conversions in the past 30 days for Target CPA to work effectively.

Note: Enhanced CPC (ECPC) was deprecated for Search and Display campaigns in March 2025.

Example: After tracking 40 conversions over 6 weeks with manual bidding, a dental practice switches to Target CPA bidding at $80. Google’s algorithm adjusts bids automatically based on conversion likelihood signals, eventually achieving a $72 average CPA.