Manual vs. Smart Bidding in Google Ads: Which is Right for You?

By: Jyll Saskin Gales, Google Ads Coach

Are you clinging to manual CPC bidding in your Google Ads campaigns? Take a deep breath and let it goooooooo! While manual bidding offers a sense of control, Smart Bidding strategies are the way to go.

In this post, we'll explore the benefits of Smart Bidding and why it might be time to finally consider making the switch. We'll cover:

• The limitations of manual CPC bidding
• The advantages of smart bidding in Google Ads
• Different types of smart bidding strategies and when to use them
• How to transition from manual to smart bidding
• Tips for optimizing your smart bidding campaigns

The limitations of manual CPC bidding

Manual bidding gives you granular control over your bids, allowing you to set the maximum amount you're willing to pay for each click. While this can be appealing, it also has some drawbacks:

• Time-consuming: Manually adjusting bids for potentially hundreds of keywords can be incredibly time-consuming.
• Limited data: You're relying on your own limited data and insights to make bidding decisions, missing out on billions of Google's proprietary signals.
• Missed opportunities: You might miss out on valuable conversions if your bids are too low or waste money if they're too high.

In contrast, smart bidding utilizes Google's machine learning algorithms to optimize your bids in real-time based on a vast amount of data. This means you can:

• Save time: Automate your bidding and free up time for other tasks.
• Improve performance: Leverage Google's data and algorithms to get more conversions at a lower cost.
• Stay ahead of the competition: Adapt to changing market conditions and auction dynamics automatically.

The advantages of smart bidding in Google Ads

Think of smart bidding like a self-driving car for your Google Ads campaigns. (Seriously - Google's self-driving cars are powered by the same AI as Google Ads Smart Bidding!) You set the destination (your goal), and the car (Google's algorithms) figures out the best route to get you there.

There are four smart bidding strategies in Google Ads:

• Maximize Conversions: This strategy aims to get you the most conversions possible within your budget.
• Maximize Conversion Value: If you're focused on revenue, this strategy will help you get the most value from your conversions.
• Target CPA: Set a target cost-per-acquisition (CPA), and Google Ads will try to get you as many conversions as possible at that price.
• Target ROAS: If you want to achieve a specific return on ad spend (ROAS), this strategy will optimize your bids to achieve your desired ROI.

How to switch from Manual Bidding to Smart Bidding in Google Ads

Ready to finally give smart bidding a try? Here are some tips for a smooth transition:

• Ensure sufficient conversion data: Smart bidding relies on conversion data to learn and optimize. Make sure you have enough conversions for the algorithms to work effectively. That usually means an average of at least 1 conversion per day.
• Set realistic goals: Don't expect miracles overnight. Just like your baby takes time to learn how to crawl, walk and talk, your smart bidding campaigns need time to learn and optimize.

Optimizing Your Smart Bidding Campaigns

Once you've made the switch to smart bidding, here are some ways to optimize your campaigns:

• Refine your conversion tracking: Accurate conversion tracking is crucial for smart bidding success. Make sure you're tracking all valuable actions.
• Use audiences: Provide Google Ads with as much information as possible about your ideal customers via tools like Customer Match.
• Set appropriate targets: Make sure your CPA or ROAS targets are realistic and aligned with your business goals. If you don't know what an appropriate target should be, start with a Maximize strategy.
• Regularly review performance: Continuously monitor your campaigns and make small adjustments as needed.

Smart bidding can be a powerful tool for improving your Google Ads performance. By understanding the different strategies and how to optimize your campaigns, you can reach new levels of success and drive better results.