Google Ads Bidding Strategies Explained
Short answer: Google Ads has seven main bidding strategies. New campaigns with no conversion data should start with Manual CPC or Maximize Clicks. Once you’ve collected 30–50 monthly conversions, switch to Target CPA or Target ROAS and let the algorithm work.
The 7 Google Ads bidding strategies
1. Manual CPC
You set the maximum bid for each keyword. Google won’t exceed it. This gives full control but requires constant manual management. Best for: campaigns with very small budgets, advertisers who want granular control, or accounts with inconsistent conversion tracking.
- Pros: Full control, no algorithm dependency, good for testing
- Cons: Time-intensive, misses real-time auction signals that smart bidding uses
- Minimum conversions needed: None
2. Enhanced CPC (eCPC)
Manual CPC with a layer of automation. Google adjusts your manual bids up or down (within a limit) based on the likelihood of conversion. A transitional strategy between full manual and full automated bidding.
- Pros: Keeps your bid control while getting some smart bidding benefit
- Cons: Less powerful than Target CPA/ROAS; Google is phasing it out for some campaign types
- Minimum conversions: ~15–20/month for meaningful optimisation
3. Maximize Clicks
Google spends your budget to get as many clicks as possible. It doesn’t care about conversion rate or CPA — just clicks. Useful for new campaigns to generate traffic quickly, or for brand awareness where clicks matter more than conversions.
- Pros: Fast traffic, good for data gathering and new accounts
- Cons: Can attract low-quality clicks; zero optimisation for conversions
- Minimum conversions: None
4. Target CPA
You tell Google your target cost per conversion, and it adjusts bids in every auction to hit that goal. This is the most common smart bidding strategy for lead generation and service businesses where all conversions are worth roughly the same amount.
- Pros: Automated, uses real-time signals (device, time, audience, location), scales well
- Cons: Needs conversion history to work; setting target too low starves the campaign
- Minimum conversions: 30–50/month; ideally 100+
Start your target CPA close to your current actual CPA. Once stable, reduce it gradually (10–15% at a time). See what is CPA and what is a good CPA.
5. Target ROAS
You set a target return on ad spend, and Google optimises bids to hit it. Best for ecommerce where different orders have different values — Google will bid more aggressively for users more likely to make a large purchase. See target ROAS bidding explained.
- Pros: Optimises for revenue value, not just conversion count
- Cons: Needs accurate conversion value tracking; struggles with low conversion volume
- Minimum conversions: 50+/month recommended; ideally 100–150+
6. Maximize Conversions
Google spends your entire budget to get as many conversions as possible, with no CPA target. A good starting strategy before you have reliable CPA data — lets the algorithm learn what converts, then switch to Target CPA once you have enough data and know your target.
- Pros: Fast learning, no conversion target needed upfront
- Cons: Can produce high or unpredictable CPA; no guardrail on cost efficiency
7. Target Impression Share
Google bids to show your ad at a target impression share — either anywhere on the page, at the top, or at the absolute top position. Best for branded campaigns where you want to dominate your own brand name searches. Not recommended for performance campaigns.
How to choose the right strategy
- New campaign, no conversion data: Maximize Clicks or Manual CPC for 4–6 weeks to gather data
- Lead gen, 30–50+ conversions/month: Target CPA
- Ecommerce with conversion values, 50+ conv/month: Target ROAS
- Brand keywords: Target Impression Share at 90–100%
- Very small budget (<$500/month): Manual CPC — smart bidding needs more volume to learn
Common mistakes
- Switching strategies too frequently. Every strategy change triggers a new learning period (1–2 weeks). Changing every few days means the algorithm never stabilises.
- Setting Target CPA below what the account can realistically achieve. An unrealistic target causes the algorithm to underbid, reducing volume to near zero. Set the target at or slightly below your current average CPA first.
- Using Target ROAS with insufficient conversion data. Without enough volume, Target ROAS makes erratic decisions. Stick with Target CPA or Maximize Conversions until volume is sufficient.
FAQ
Is Target CPA or Target ROAS better?
Target CPA is better when all conversions are worth the same (e.g. all leads have equal value). Target ROAS is better when conversion values vary (e.g. ecommerce orders of different sizes). If you’re not passing conversion values to Google, use Target CPA.
What happens during the Smart Bidding learning period?
The algorithm experiments with different bids to learn what predicts conversions. During this 1–2 week period, CPA may fluctuate significantly. Avoid making major changes to the campaign during learning — it resets the period.
Can I set a max CPC limit with Target CPA?
Not directly. Target CPA doesn’t have a hard CPC cap. If you need to limit CPC, use portfolio bid strategies with optional max CPC limits, or use Manual CPC with eCPC instead.