Smart Bidding has matured dramatically over the past three years. In 2021, the question is no longer whether to use automated bidding — it’s how to use it correctly. Misunderstood Smart Bidding strategies waste budgets. Implemented well, they consistently outperform manual CPCs.
The Four Smart Bidding Strategies Explained
Target CPA (tCPA): Optimizes bids to achieve your desired cost per acquisition. Best for accounts with 30+ conversions per month and stable conversion values.
Target ROAS (tROAS): Bids to maximize conversion value at a specific return on ad spend target. Essential for ecommerce accounts with varying product margins.
Maximize Conversions: Spends your entire budget while maximizing conversion volume.
Maximize Conversion Value: Focuses on value rather than volume. Ideal for businesses where some conversions are worth more than others.
The Learning Period Problem
Every Smart Bidding strategy requires a learning period of 1–2 weeks after significant changes. Impatient advertisers who modify bids during the learning period effectively reset the clock — and sabotage their own campaigns.