Definition
Smart Bidding is Google’s suite of automated bid strategies that use machine learning to set bids for each auction in real time, optimizing toward conversions or conversion value.
Detailed Explanation
| Strategy | Optimizes For |
|---|---|
| Maximize Conversions | Highest conversion volume within budget |
| Maximize Conversion Value | Highest total conversion value |
| Target CPA (tCPA) | Conversions at target cost per acquisition |
| Target ROAS (tROAS) | Conversion value at target return on ad spend |
| Enhanced CPC (eCPC) | Manual bids adjusted for conversion likelihood |
Smart Bidding requires conversion tracking and benefits from 30+ conversions per month per campaign for stable performance. Provide audience signals and clean conversion data for best results.
Nepal Context
Start with Maximize Conversions for new Nepali accounts until 30+ monthly conversions, then switch to tCPA/tROAS based on break-even metrics. Avoid tROAS if conversion values are not passed correctly from WooCommerce or CRM — common integration gap locally.
Practical Examples
- E-commerce: tROAS 400% once Merchant Center passes item-level values.
- Lead gen: tCPA NPR 500 after 50 conversions in learning phase.
- Seasonal campaigns (Dashain/Tihar): temporarily switch to Maximize Conversions to capture demand spike.
Key Takeaways
- Smart Bidding = ML-driven auction bids; needs conversion data to work.
- Learning phase (~2 weeks) after major changes — avoid panic edits.
- tROAS for value optimization; tCPA for lead volume at fixed cost.
Common Mistakes
- Switching strategies during learning phase — resets optimization.
- Unrealistic tROAS targets — throttles impressions to zero.
- No conversion value for e-commerce — tROAS optimizes blindly.
