B2BVault's summary of:

The Pros & Cons of Every Automated Bidding Strategy in Google

Published by:
WordStream
Author:
Michelle Morgan

Introduction

Google Ads offers many automated bidding strategies, but each comes with risks and rewards. Picking the right one depends on your goals and data.

What’s the problem it solves?

Most advertisers don’t have the time or data to adjust bids constantly. Automated bidding helps by letting Google’s system handle it, but knowing which strategy fits your needs is key.

Quick Summary

Google Ads gives you two main ways to set bids: manual or automated. Manual bidding gives you full control but takes a lot of time and only uses the limited data Google shows you. Automated bidding, on the other hand, uses machine learning and hidden data points to adjust bids in real time based on the chance of getting a click or conversion.

There are eight automated strategies, each with pros and cons. For example, Maximize Conversions and Maximize Clicks focus on volume, but they may spend your full budget quickly. Target CPA and Target ROAS aim for efficiency but require enough conversion history to work well. Strategies like Target Impression Share and Viewable CPM are better for awareness, while CPV (cost per view) works only for video ads. Smart Bidding strategies (Max Conversions, Max Conversion Value, Target CPA, Target ROAS) use auction-time data to optimize for conversions and value, making them more advanced than basic automated bidding.

In the end, no one strategy fits all campaigns. The best choice depends on your budget, goals, and available data. And even with automation, you can’t “set it and forget it” - you still need to monitor performance and adjust.

Key Takeaways

  • Automated bidding saves time but requires careful setup and monitoring.
  • Smart Bidding strategies are a subset of automated bidding focused on conversions and value.
  • Maximize Conversions and Maximize Clicks can overspend if not capped.
  • Target CPA and Target ROAS need enough conversion history to perform.
  • Awareness-focused strategies like Impression Share and vCPM can drive reach but may not deliver profit.
  • Manual CPC is simpler and good for beginners but demands more work.
  • No single strategy works everywhere - match the tool to the campaign goal.

What to do

  • Make sure conversion tracking is set up before testing conversion-based strategies.
  • Use Max CPC caps to prevent runaway costs with click-focused strategies.
  • Assign dollar values to conversions if using value-based bidding.
  • Only try Target CPA or Target ROAS if you have at least 30-50 conversions in the past month.
  • Start with realistic goals (don’t cut CPA or boost ROAS too aggressively at first).
  • Pick bidding strategies per campaign, not account-wide.
  • Review performance often - don’t leave automation unchecked.

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