What You Will Learn
- The difference between manual and automated (Smart) bidding
- When Manual CPC still outperforms automated strategies
- What data volume Smart Bidding requires to function effectively
- Target CPA vs Target ROAS — which to use for your business model
- How Maximise Conversions and Maximise Conversion Value work
- Portfolio bidding strategies for managing multiple campaigns
- How to safely transition from manual to Smart Bidding
Manual vs Smart Bidding
Google Ads bidding strategies fall into two categories: manual strategies where you set bids directly, and Smart Bidding strategies where Google's machine learning sets bids automatically based on your stated objective.
Smart Bidding uses auction-time signals — including device, location, time of day, audience membership, browser, OS, search history, and many others — to predict the likelihood of a conversion in each specific auction and adjust the bid accordingly. This makes it theoretically capable of outperforming manual bidding at scale, because no human can process dozens of signals simultaneously for every auction.
However, Smart Bidding requires sufficient conversion data to learn from. Without adequate data, the algorithm has no basis for prediction and performs poorly. Google's general guidance is a minimum of 50 conversions per month per campaign for most Smart Bidding strategies, with Target ROAS typically requiring 100+ monthly conversions for stable performance.
Smart Bidding minimum
Conversions/month recommended for Target CPA
Target ROAS minimum
Conversions/month for stable Target ROAS performance
Learning period
After strategy change before evaluating performance
Manual CPC
Manual CPC gives complete control over the maximum bid for each keyword or ad group. Google will not exceed the set bid for any click. This is the most transparent and controllable bidding strategy — you always know exactly what you are paying per click and can adjust based on your own analysis.
When Manual CPC makes sense
- New campaigns with insufficient conversion data. Before accumulating 50+ conversions per month, Smart Bidding has no basis for prediction. Manual CPC avoids the "learning phase" instability of under-data Smart Bidding.
- Brand campaigns. Brand keyword clicks typically have high CTR and controlled volume. Manual CPC on brand terms allows precise cost management without Smart Bidding overhead.
- Highly controlled budget situations. When monthly budget is very tight and predictable spend per keyword is required, manual bidding provides certainty that Smart Bidding does not.
- Testing keyword bids. When initially building out a new keyword list, manual CPC allows you to understand the traffic characteristics of each keyword before committing to automated optimisation.
Enhanced CPC (ECPC)
Enhanced CPC is a hybrid strategy: you set manual bids, and Google automatically adjusts them upward or downward (up to +30% above your manual bid) for auctions it predicts are more or less likely to convert. It is effectively manual bidding with a Smart Bidding modifier.
ECPC is positioned as a stepping stone between manual and full Smart Bidding — it uses the same auction-time signals as Smart Bidding but within a constrained range around your manual bids. It is useful for accounts transitioning toward automation that are not yet comfortable fully relinquishing bid control.
Note: Google has indicated that ECPC will eventually be deprecated in favour of fully automated strategies. For new campaigns, starting with Max Conversions (with a target CPA or budget constraint) is generally recommended over ECPC.
Maximise Clicks
Maximise Clicks automatically sets bids to get the most clicks within your daily budget. It does not consider conversion probability — it optimises purely for click volume. This strategy is appropriate for campaigns focused on traffic volume rather than conversion efficiency.
Appropriate use cases
- Brand awareness campaigns where reach and click volume are the goal
- New campaigns building initial data before switching to conversion-focused bidding
- Non-commercial content promotion where there is no conversion event to optimise for
Maximise Clicks can be combined with a Maximum CPC limit (bid cap) to prevent the algorithm from winning clicks at unprofitable CPCs. Without a bid cap, the strategy may pay any amount to maximise click volume within budget.
Target CPA (Cost Per Acquisition)
Target CPA sets bids to achieve a target average cost per conversion. Google adjusts bids in each auction based on the predicted conversion probability — bidding more in auctions where conversion is more likely, bidding less (or not at all) in auctions where it is unlikely.
The key parameter: your Target CPA value. Setting it too low leads to volume loss — Google cannot win enough auctions within the cost constraint. Setting it too high wastes budget on conversions that could have been acquired more cheaply. The initial Target CPA should be close to your actual historical CPA (or slightly above) to avoid destabilising the campaign during the learning period.
After changing to Target CPA (or changing the target value), Google enters a 2–4 week learning period where it accumulates data for the new target. Making further bid strategy changes during this period resets the learning period, prolonging instability. Evaluate performance only after the learning period completes.
Target ROAS (Return on Ad Spend)
Target ROAS sets bids to achieve a target return on ad spend — the ratio of conversion value to ad spend. If you want £5 of revenue for every £1 spent, your Target ROAS is 500%. Google adjusts bids to maximise conversion value at the specified ROAS target.
Target ROAS requires conversion values — either fixed values per conversion type or variable values passed from your website (e-commerce transaction values). Without accurate conversion values, the algorithm has no basis for optimising toward value and should not be used.
| Target ROAS | Meaning | Use When |
|---|---|---|
| 200% | £2 revenue per £1 spent | Appropriate for high-margin products; tight profit margins may require higher |
| 400% | £4 revenue per £1 spent | Common target for mid-margin e-commerce |
| 1000% | £10 revenue per £1 spent | Appropriate for low-margin, high-volume products; aggressive ROAS targets reduce volume |
Maximise Conversions and Maximise Conversion Value
Maximise Conversions spends your budget to get the most conversions regardless of CPA. Without a target CPA set, it will spend the full daily budget to maximise conversion count — useful for campaigns where budget should be spent fully and volume is the primary goal.
Maximise Conversion Value spends your budget to maximise total conversion value. Without a target ROAS, it prioritises the highest-value conversions regardless of CPA efficiency.
Both strategies become more controlled when a target is added: Maximise Conversions + Target CPA behaves like Target CPA bidding; Maximise Conversion Value + Target ROAS behaves like Target ROAS bidding. Google has effectively merged these into unified strategies — Target CPA and Target ROAS are the recommended starting points for conversion-focused campaigns with sufficient data.
Portfolio Bidding Strategies
Portfolio strategies apply a single bidding strategy across multiple campaigns, allowing the algorithm to optimise performance across a shared pool of campaigns rather than within each in isolation. Available for Target CPA, Target ROAS, and Maximise Clicks with a bid cap.
Portfolio strategies are useful when individual campaigns have insufficient conversion volume to run Smart Bidding independently but collectively reach the data threshold. A group of 5 campaigns each with 15 conversions per month cannot individually run Target CPA effectively, but pooled as a portfolio (75 conversions/month) they meet the minimum threshold.
Choosing the Right Bidding Strategy
| Situation | Recommended Strategy |
|---|---|
| New campaign, no conversion data | Manual CPC or Maximise Clicks (with bid cap) until 50+ conversions accumulated |
| 50–100 conversions/month, consistent CPA target | Target CPA or Maximise Conversions with Target CPA |
| 100+ conversions/month with tracked revenue values | Target ROAS or Maximise Conversion Value with Target ROAS |
| Brand campaign, controlled spend needed | Manual CPC with conservative bids |
| Multiple campaigns, low individual volume | Portfolio Target CPA across related campaigns |
| Display/awareness campaign | Target CPM or Maximise Clicks (with bid cap) |
Authentic Sources
Official Target CPA documentation including setup and data requirements.
Official Target ROAS documentation including conversion value requirements.
Smart Bidding overview including learning periods and performance evaluation.