How Smart Bidding Takes Automated Bidding for Search Campaigns
to the Next Level

how smart bidding takes automaed bidding for search campaigns to the next level

What Is Smart Bidding

Google's Smart Bidding is an advanced version of Automated Bidding. It is a collection of automated bid techniques that leverage machine learning to adjust bids in real time by analyzing various signals, such as user behavior and context. By doing so, Smart Bidding enables advertisers to attain superior performance than traditional automated bidding. It is particularly effective for search campaigns, where the competition for ad placement is intense.

How Smart Bidding Works

smart bidding stratergies

Smart Bidding uses machine learning to optimize bids in real time based on a range of signals. These signals include user behavior, device, location, time of day, and more. By analyzing this data, Smart Bidding can make bid adjustments that are more precise and effective than traditional automated bidding.

Here are some of the key components of how Smart Bidding works:

1. Auction-time bidding

Smart Bidding adjusts bids at the time of the ad auction based on the likelihood of a particular user converting. This means that bids are personalized for each individual user, allowing advertisers to make the most of their advertising budget

2. Target CPA

Target CPA is a Smart Bidding strategy that automatically sets bids to help achieve a specific cost-per-acquisition (CPA) goal. This allows advertisers to focus on driving conversions while maintaining a set cost.

3. Target ROAS

Target ROAS is another Smart Bidding strategy that automatically sets bids to help achieve a specific return on ad spend (ROAS) goal. This strategy is ideal for advertisers who want to maximize revenue while maintaining a specific level of profitability.

4. Enhanced CPC

Enhanced CPC is a Smart Bidding strategy that adjusts manual bids to improve the chances of conversion. This is done by analyzing the likelihood of a conversion and increasing bids for users who are more likely to convert.

Smart Bidding vs Manual Bidding

Smart Bidding and Manual Bidding are two different strategies that can be used in digital advertising campaigns.

Manual Bidding refers to the practice of manually setting bids for each keyword, placement, or targeting option in a campaign. This requires a lot of time and effort to monitor and adjust bids regularly to ensure that the campaign is achieving its objectives. Manual bidding provides a high level of control but requires expertise and ongoing attention to detail.,

On the other hand, Smart Bidding is a machine learning-powered bidding strategy that uses historical campaign data and real-time signals to automatically set bids in real-time. Smart Bidding algorithms adjust bids automatically based on factors like device, location, time of day, and user behavior, to maximize the return on investment, ROI, for the advertiser. This strategy saves time and effort while also optimizing the campaign for better performance.

Smart Bidding offers advantages like increased efficiency, better optimization, and cost-effectiveness, while Manual Bidding provides a greater degree of control and precision. The choice between Smart Bidding and Manual Bidding depends on the advertiser's objectives, budget, and level of expertise in managing digital advertising campaigns.


Smart Bidding is a powerful tool in digital advertising that uses machine learning and algorithms to automatically adjust bids in real-time. This strategy saves time, and effort, and helps advertisers achieve their business goals more efficiently. By analyzing data such as user location, device type, and behavior, Smart Bidding can optimize campaign performance and increase ROI. With Smart Bidding, advertisers can focus on strategic aspects of their campaigns and let the algorithm take care of the bidding details. Overall, Smart Bidding is a valuable asset for any advertiser looking to improve their digital advertising campaigns.