Your guide to Smart Bidding

As announced on September 5, 2024, the Enhanced CPC (ECPC) bid strategy will no longer be available for Search and Display campaigns.

What will happen in October 2024?

  • The ability to opt into the ECPC bid strategy won’t be available for Search or Display.
  • ECPC option will be removed for existing campaigns that have switched out of ECPC.
  • Existing campaigns using ECPC will be able to continue using it until March 2025.

Keep the following in mind:

  • While transitioning to a new bid strategy, it’s important to closely monitor performance and minimize fluctuations as bidding gradually adjusts to your new strategy.
  • Manage spend and performance by adjusting budgets and targets as needed
  • After March 15, 2025, Search and Display campaigns that are still using the ECPC bid strategy will be automatically migrated to Manual Cost-Per-Click (CPC).

Consider the following bidding strategies and goals:

  • Maximize conversions or Target CPA: If your goal is to get as many conversions as possible within your budget and target CPA constraints (if applicable) . More details here
  • Maximize conversions value or Target ROAS: If your goal is to maximize the return on the ad spend you set within your budget and target ROAS constraints (if applicable). Before switching goals, ensure you have sufficient conversions with value enabled (two or more differentiated values). More details here and on the value based bidding hub
  • Maximize clicks or target Impressions/Cost-per-thousand impressions (CPM): if your primary goal is to increase site visits or impressions.
  • Pay per conversion (Display only): If eligible, you can use Pay for Conversions to increase conversion volume while only paying for those conversions. Find more details on eligibility here.
For more information on different bid strategies refer to About automated bidding and Your Guide to Smart Bidding

Smart Bidding is a set of automated bidding strategies that use Google AI to optimize for conversions or conversion value. Smart Bidding sets precise bids for each and every auction to help drive higher conversion volume or conversion value at a cost efficiency that is comparable to or better than existing performance goals.

Target CPA, Target ROAS, Maximize conversions and Maximize conversion value are all Smart Bidding strategies.

Target Impression share and Max clicks are also automated bid strategies but don’t include auction time bidding.

Diagram explaining when to use Smart Bidding and when to use Automated Bidding

Benefits of Smart Bidding

Google Ads automated bidding helps you optimize bids at scale across your business goals. Smart Bidding uses Google AI technology. Automated bidding gives you:

  • Bid strategies that align to your goals: Choose from a variety of bid strategies to meet your business objectives, conversion goals, and conversion value goals.
  • True auction-time bid optimization: Smart Bidding optimizes bids for every auction, helping you set more precise bids tailored to each user’s search context and meet your performance goals more effectively.
  • Query-level performance modeling: Smart Bidding uses search query-level conversion data across your account to help solve data scarcity that individual keywords may face. This allows the algorithms to bid more accurately on low-volume keywords or keywords that are still building performance history.
  • A richer set of contextual signals: In addition to evaluating key signals like device, location, and time of day, Smart Bidding accounts for other signals like browser, operating system, language, and many more. This helps incorporate the search context and conversion likelihood of each auction into every bid. It also considers signal combinations that have a statistically significant impact on conversion rate, which individual bid adjustments may not capture. Learn more about automated bidding signals
  • Algorithms that keep learning: Smart Bidding continuously updates your bidding algorithms to align with changes in performance and adapts to your business’ specific conversion cycle to know how to heavily weigh recent versus historical data.
Tip:
Check out the Search Automation technical guide to learn more about the signals Google uses, how queries match to keywords, how using AI makes keyword matching more effective, and what you can do to improve performance.
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Basics | Get started with Smart Bidding

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