Automated bidding in Google Ads: How to get the best results

Automated bidding in Google Ads promises to simplify campaign management and boost results – but it’s not foolproof. 

With the right bidding strategy, you can take control, optimize performance, and drive better conversions.

Let’s break down the essentials to get started.

Manual CPC: The best starting point for new campaigns

The simplest way to launch a new campaign, especially in a new or low-budget account, is to start with Manual CPC bidding. 

This lets you test comfortable bid levels and adjust based on results. 

Monitor these campaigns closely: 

• Start with a bid.
• Increase it if volume is low.
• Track ad position, CTR, CPC, and conversions. 

For example, if impressions are too low, your bid is likely too low. 

If you see high conversions, clicks, and a strong Impr. (Abs. Top) %, test lowering your bid to reduce CPC and CPA. 

It’s a constant balance to find the optimal bid for your budget.

You can add negative keywords based on the search terms you see coming through and better control your spend, as there won’t be any surprises with average CPCs. 

However, automated bidding strategies like Maximize Conversions in a new campaign or ad account may result in extremely high CPCs for your target keywords. 

For instance, a small business may find a $100 CPC unacceptable, and spending can escalate quickly.

Once you’ve gathered enough performance data from impressions, clicks, and conversions, you can test switching to automated bidding strategies like Maximize Conversions. 

Alternatively, if you have a higher budget and are prepared to spend more upfront to collect data, you can launch a new campaign using Maximize Conversions immediately.

Dig deeper: There is no ‘best’ Google Ads bidding strategy, study finds

Pairing keyword match types and bidding strategies for success

Keyword match types and bidding strategies will vary depending on your budget and the average CPC in your industry.

Broad match keywords perform significantly better with automated bidding (i.e., Maximize Conversions) because it can automatically test many variations of your broad match keywords to find the best search terms with high conversion rates. 

This is much more difficult to achieve with manual bidding for broad match keywords.

For more specific terms, often used in B2B lead generation, phrase and exact match are preferred to keep search terms focused and avoid wasting money on irrelevant searches. 

Both automated and manual bidding can be effective with these match types, as you may not want to target a wide range of variations or related terms. 

Many industries rely on extremely specific keywords where slight variations or related terms no longer make sense to target.

Industries like home services, local businesses, attorneys, medical, education, insurance, and ecommerce often benefit from using broad match with automated bidding since many relevant search terms are available.

Testing broad match keywords with automated bidding is worthwhile if you have the budget.

Broad match has evolved significantly, now factoring in elements such as:

• The user’s recent search activities.
• The content of the landing page.
• Other keywords in an ad group to better understand keyword intent.

In my experience, this approach has been far more effective than the old broad match, which attempted to expand to terms it deemed related. 

However, negative keywords remain critical and should always be a priority on any PPC management checklist.

Maximize Conversions: Benefits, challenges, and best practices

The Maximize Conversions bidding strategy is often used to gather data for a specific ad campaign. 

It can initially result in high CPCs and CPAs because it tests various combinations to determine what generates the most conversions over time. 

Unlike a human monitoring CPC and CPA during a new campaign launch, Google focuses on maximizing conversions within your budget but lacks the data to perform optimally at the start.

In other words, Maximize Conversions doesn’t immediately deliver the results its name suggests.

If enough conversions aren’t gathered during the learning phase, it may spend significant amounts with no conversions. 

This occurs because platforms like Google Ads, Microsoft Ads, or Meta Ads are trying to identify the right audience or keywords that could convert. 

If the initial keywords or audience don’t work, the system will test others. 

This is not an instant process, and in some cases, hundreds of clicks and substantial costs may yield no conversions. 

While results typically improve if the right audience or keywords are targeted, success is not guaranteed. 

Many advertisers pause campaigns after excessive ad spend with no conversions, where testing manual bidding first might have been a better option.

Maximize Conversions can be particularly effective with audience targeting in Display Ads or Video campaigns for lead generation or ecommerce. 

These campaign types often launch well with Maximize Conversions because their CPCs tend to be low, and automation can efficiently test various audiences or placements much faster than manual CPC bidding. 

For these types of campaigns, a tCPA or tROAS may not even be necessary if the strategy is delivering ample conversions.

Refining Maximize Conversions with tCPA or tROAS

A Target CPA (tCPA) or Target ROAS (tROAS) can be applied after you have determined your average CPA or ROAS, or you can choose to set up Maximize Conversions with a tCPA or tROAS from the start – both approaches are acceptable. 

However, this setting can be restrictive if it is based on assumptions without supporting data. 

To avoid overly limiting the campaign early on, you may consider launching with a higher tCPA or tROAS than your ideal target.

Ecommerce tends to be simpler with automated bidding because a sale is a sale. 

Lead generation, however, involves additional challenges such as lead quality issues or fake leads. 

For this reason, CRM and call-tracking software integration are essential to monitor lead quality by source and ad campaign.

Boosting returns with Maximize Conversion Value

For ecommerce, Maximize Conversion Value is an excellent option for prioritizing higher-priced products over lower-priced ones to boost your overall ROAS for the campaign. 

However, it’s often best to start with Maximize Conversions and switch to this setting after gathering sufficient sales data.

This option can also be applied to lead generation if different values are assigned to different leads. 

For instance, filling out a form for an appointment can be assigned a higher conversion value than simply providing an email for a free download.

Portfolio bidding: Strategies for complex campaigns

Portfolio bidding refers to shared bidding strategies that can be applied to one or multiple campaigns, offering additional settings not available at the campaign level. 

These strategies are particularly useful when CPCs are increasing rapidly, as portfolio bidding allows you to address this issue immediately. 

Unlike campaign-level settings, portfolio bidding enables you to set both a Target CPA and a Max CPC simultaneously. 

This is especially beneficial in industries where target keywords typically have low CPCs. 

It can also be useful in competitive industries or for expensive keywords to avoid $200 CPCs that could harm account performance.

For instance, you can set a target CPA of $50 with a max CPC of $8. 

This approach is far more effective than using the Maximize Conversions bid strategy, which may test CPCs as high as $150 – three times your target CPA. 

Even with a 100% conversion rate, this would exceed your goal by a wide margin. 

This is a clear example where automation benefits from human guidance to ensure it aligns with your advertising goals when its default testing logic doesn’t make sense.

Portfolio bidding can also be valuable for ecommerce. 

For example, setting a target ROAS of 300% with a max CPC of $10 directs automation to adjust bids to achieve a 300% ROAS while capping clicks at $10 each. 

This keeps the automation in check and focused on achieving your desired outcomes.

Performance Max: Aligning automation with campaign data

Performance Max campaigns do not always deliver “maximum performance,” as the name suggests. 

For campaigns heavily reliant on automation, it is generally best to use Performance Max after establishing proof of concept with Search, Shopping, Video, or Display campaigns. 

Starting with a new account that lacks performance data and expecting Performance Max to optimize everything independently is risky. 

While it can sometimes succeed, it performs significantly better when supported by proven performance data, such as a customer list to help match your target audience or at least a remarketing audience of website visitors.

Exploring less common bidding strategies

Some less commonly used strategies include Target Impression Share, which adjusts bids to maximize impression share.

This prioritizes showing your ad as frequently as possible without monitoring other metrics. It is primarily used by large brands with nearly unlimited budgets.

Even for branded keywords in branded campaigns, it is unwise to pay excessive CPCs ($100 or more) just to maintain a top position.

The Maximize Clicks strategy adjusts bids to generate the highest possible number of clicks. However, this is not cost-effective for most advertisers unless they are large brands with substantial budgets. 

Switching from Maximize Clicks to Maximize Conversions, a common practice, is not recommended. 

Keywords that attract the most clicks do not necessarily generate the most conversions. Instead, start with manual CPC and then transition to Maximize Conversions (with or without a target CPA). 

This ensures a cohesive strategy, as both approaches aim to optimize for conversions. 

In contrast, gathering data through Maximize Clicks does not align with the goals of Maximize Conversions.

Additionally, Google is phasing out Enhanced CPC bidding. If you currently use this strategy, we recommend transitioning to manual CPC or an automated option in the first quarter of 2025.

Dig deeper: 10 advanced strategy ideas for Google Ads