Google Ads explains what Smart Bidding is and offers best practices

Google Ads this week released a new video titled Smart Bidding: Basics and best practices. This video explains what Smart Bidding is and offers best practices to optimize campaign performance.

Smart Bidding is a type of bid strategy that uses Google's AI to optimize for conversions or conversion value. It leverages a wide array of signals to make accurate predictions at auction time. There are three main goals you can optimize for with Smart Bidding: maximize conversions, maximize conversion value, or maximize return on ad spend (ROAS).

Here are some tips to get the most out of Smart Bidding:

• Pick the right strategy based on your goals. If you want to generate more sales or leads, choose maximize conversions. If you want to focus on value, like revenue or profit, choose maximize conversion value.
• Set the right targets. When using maximize conversion value with a target ROAS, set a target that aligns with your business objectives. You can adjust these targets as often as you need to based on market changes or to optimize for a new ROI goal.
• Use conversion tracking. This will allow Smart Bidding to optimize for the right conversions.
• Choose the right conversion goals. Ideally, these should be actions that have a relatively short conversion delay so you can assess campaign performance more easily.
• Monitor performance. Use the bid strategy report to view your average performance against your target ROAS. You can also view explanations for performance fluctuations.