A bid strategy determines how much Google Ads pays for each impression or click and what the system optimizes for in the auction: clicks, conversions, conversion value or visibility. The right strategy lets you automate routine work and get more leads for the same budget. The wrong one, or the right one set up badly, can spend months “learning” from the wrong data.
The first version of this article was published in 2019. Since then Google has retired several strategies, changed its attribution models, and on 17 August 2026 changed how target-based strategies behave when a campaign is limited by budget. We have rewritten the article from scratch: which strategies exist today, what you need before switching on Smart Bidding, how long learning takes, and how to move to automated bidding safely.
Google groups bid strategies by goal. Strategies that optimize for conversions or conversion value using machine learning are called Smart Bidding.
| Goal | Strategy | What you set | When it fits |
| Conversions | Maximize conversions | Budget only | Conversions are tracked and you want as many as possible within budget |
| Conversions | Target CPA | The average cost per conversion you want | You know what a lead or sale is worth and need to keep its cost under control |
| Conversion value | Maximize conversion value | Budget only | Conversions have different values (order totals) and you want maximum revenue |
| Conversion value | Target ROAS | The return on ad spend you want | An online store that passes order values and knows its margins |
| Clicks | Maximize clicks | Budget and, optionally, a maximum CPC bid limit | You need traffic, for example to collect your first conversion data |
| Clicks | Manual CPC | Bids for ad groups or keywords | You need full control over bids and have too little data for automation |
| Visibility | Target impression share | The share of impressions and the location: absolute top, top of page or anywhere | Branded search, protecting your brand terms from competitors |
Display and video campaigns have their own strategies based on cost per thousand impressions or cost per view, but they are not used for Search or Performance Max. Performance Max only runs on Maximize conversions and Maximize conversion value, with or without a target. If you run Shopping or Performance Max, see our Google Shopping and Performance Max services.
If you have read guides to automated bidding written a few years ago, some of their advice no longer applies.
| Then | Now |
| Enhanced CPC (ECPC) | Discontinued for Search and Display campaigns from the week of 31 March 2025. Campaigns that were not moved to another strategy now run on Manual CPC |
| Target search page location and Target outranking share | Retired in 2019. Replaced by Target impression share with a choice of location |
| First click, linear, time decay and position-based attribution | Removed in 2023. Only data-driven attribution (the default) and last click remain |
| Smart Goals from Google Analytics as conversions | Gone along with Universal Analytics. Conversions are imported from GA4 or tracked with the Google Ads tag |
| Target CPA and Target ROAS as standalone strategies | In 2021 they became optional targets inside Maximize conversions and Maximize conversion value. In summer 2026 Google started showing them as separate options in the menu again. How they work has not changed |
Smart Bidding optimizes for exactly what you have marked as a conversion. If your primary conversion is a view of the About page or an 80% scroll, the system will learn to bring in people who scroll, not people who buy.
So before you start:
Requirements depend on the strategy and campaign type:
Being able to switch a strategy on does not mean it will perform consistently. To evaluate results, Google recommends looking at a 30-day period with at least 30 conversions. If you get only a handful of conversions a month, the system simply has nothing to learn from, and it is better to collect data first.
There is no universal "best" strategy. The choice depends on what you know about your conversions and how many you get.
| Situation | Where to start |
| New account, no conversions yet | Maximize clicks with a maximum CPC limit, or Manual CPC, to collect the first conversions on relevant queries |
| Some conversions, but few, and no clear acceptable cost per lead | Maximize conversions |
| A steady flow of conversions and a clear acceptable cost per lead | Target CPA, set at your actual cost per conversion for the last month |
| Online store passing order values | Maximize conversion value, then Target ROAS once data builds up |
| Branded search | Target impression share with a maximum CPC limit |
To set a realistic target, you need to know what return on ad spend your margins can support. Our ROAS calculator helps with the numbers.
After you launch or change a strategy, its status shows "Learning". According to Google’s help documentation, calibration can take up to around 50 conversion events or 3 conversion cycles — that is, three times the average time between a click and a conversion. For a product bought on the day of the click, that is a few days; for B2B with a week-long decision cycle, it is several weeks.
Learning starts again when:
Results fluctuate during learning, and that is normal. The most common mistake is changing the target or budget every day after a bad day: each change sends the strategy back to the beginning.
If you expect a few unusual days (a sale, a tracking outage), use seasonality adjustments and data exclusions (advanced controls in the bid strategies section). They tell the system what to expect instead of forcing it to relearn.
Campaigns using Target CPA or Target ROAS that were limited by budget used to overperform their targets. For example, the Target CPA was $40, but the actual cost per conversion was $25. Many advertisers got used to that "bonus".
Since 17 August 2026, these campaigns deliver closer to the stated target. If the target is $40, the system will aim for more conversions at around $40, rather than fewer conversions at $25. The change applies to Search, Shopping, Performance Max, Demand Gen and Display campaigns.
Google does not adjust your targets or budgets automatically. What to do:
If your cost per conversion went up after 17 August and you didn’t change the target or budget, this is the most likely reason.
Manual bid adjustments (location, ad schedule, audiences, demographics) mostly don’t apply to Smart Bidding: the system accounts for these signals in every auction. The exceptions:
For the same reason, don’t combine Smart Bidding with scripts or third-party rules that change bids. They will fight the automation, and each change they make can send the strategy back into learning.
If a campaign performs steadily on Manual CPC or Maximize clicks, don’t switch it to Smart Bidding in one go. It is safer to run a custom experiment:
If the trial wins, Google lets you apply the changes to the original campaign without relaunching it.
If you want to check whether conversions and bid strategies in your account are set up correctly, that is part of our Google Ads audit. If the account needs to be built from scratch, see Google Ads setup.
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