Introduction

If you’ve been running Google Ads for a while, you’ve probably noticed just how much more reliant we’ve all become on automation. It’s not just a trend anymore — it’s the direction the whole platform is headed. We recently talked with the folks over at Pitch Black Digital Marketing, and they had a lot to say about how smart bidding has gone from being a nice-to-have to pretty much essential for anyone serious about scaling their campaigns efficiently.

As Google’s algorithms continue to evolve, smart bidding is becoming sharper, faster and frankly, smarter. It’s not just about setting a few rules and letting the system handle the rest. Machine learning now pulls in a tonne of data in real time, adjusts bids at lightning speed and can drastically improve your return on ad spend — if you know how to work with it.

Let’s unpack why this shift is happening, how it’s changing strategies like Target CPA and Target ROAS, and what you can do to stay ahead of the curve.

What is Smart Bidding?

At its core, smart bidding is Google’s way of automating bid strategies using machine learning. Instead of manually tweaking your max CPCs and second-guessing what your competitors might be doing, smart bidding takes into account a ton of data signals — location, device, time of day, browser, and more — to determine the best possible bid for each individual auction.

This isn’t just automation for the sake of it. Smart bidding learns over time. It figures out what works and what doesn’t, based on your account’s history and conversion data. The goal is simple: get you more of what you want (conversions, revenue, leads) for less money and effort.

The main promise here is efficiency. It allows marketers to focus more on strategy, creative and landing page optimisation, instead of getting bogged down in the daily grind of bid micromanagement.

Core Smart Bidding Strategies

Target CPA (Cost Per Acquisition)

Target CPA is probably the most familiar to advertisers. It lets you tell Google, “This is how much I’m willing to pay for a conversion,” and Google will do its best to hit that target. It’s super useful for lead generation or sales where you’ve got a good handle on your margins.

That said, it works best when there’s already a decent volume of conversion data in your account. Otherwise, the system doesn’t have enough to go on. And while it’s generally great at finding the right users, it can sometimes miss the mark if your target CPA is set unrealistically low.

Target ROAS (Return on Ad Spend)

Target ROAS is the e-commerce darling. Instead of telling Google how much a conversion should cost, you tell it how much value you want from each dollar spent. So, if you set a Target ROAS of 400%, you’re telling the system to try and generate £4 in revenue for every £1 you spend.

Again, this relies heavily on accurate conversion value tracking. If your product feed is a mess or your revenue data isn’t feeding in properly, Target ROAS can’t perform its magic. But when it’s working right, it’s brilliant at pushing more budget toward high-value traffic and scaling profitably.

Other Strategies

There are a few other smart bidding strategies in the toolbox, like Maximise Conversions and Maximise Conversion Value. These are good options if you don’t have a specific CPA or ROAS goal in mind and just want to drive as many conversions (or as much value) as possible within your budget.

Enhanced CPC (ECPC) used to be the go-to halfway house between manual and automated bidding, but it’s been kind of overshadowed by the newer, smarter strategies.

The Role of Machine Learning

Machine learning is the brain behind smart bidding. It looks at historical data, compares patterns and then uses those patterns to predict what’s likely to happen next. Every auction, every user, every impression is an opportunity for the system to learn and improve.

What’s wild is how much data it uses. Google looks at device type, location, time of day, language settings, operating system, the list goes on. It then tailors your bid on the fly for each individual auction, something no human could ever do manually — at least not at this scale.

What’s more, the more data you give it (through accurate conversion tracking, imported offline conversions, etc.), the better it gets. It’s not about replacing marketers. It’s about giving us a tool that can handle the grunt work while we focus on the bigger picture.

Why Smart Bidding is Becoming More Crucial

The digital ad space has gotten insanely competitive. Between rising CPCs, limited tracking due to privacy changes, and more advertisers jumping online post-pandemic, the pressure is on to squeeze as much performance out of each pound as possible.

Manual bidding just can’t keep up. It’s too slow, too rigid, and too reliant on assumptions. Smart bidding, on the other hand, adapts in real time. It can shift budgets around, react to new data instantly and make thousands of tiny adjustments throughout the day that all add up to better results.

Another big reason smart bidding is gaining ground is its ability to scale. Once a campaign is running well and you’re confident in your targets, you can ramp things up without having to babysit every ad group.

Plus, with first-party data and audience segmentation becoming more important due to cookie restrictions, smart bidding can incorporate those signals and make better decisions — something manual bidding can’t really do effectively.

Evolving Strategies: How Target CPA and ROAS Are Being Refined

Target CPA and Target ROAS aren’t static strategies. They’re constantly being updated behind the scenes. Google’s making them more responsive, more adaptive, and frankly, a bit more transparent (though there’s still room for improvement on that last point).

One noticeable improvement is how these strategies now better understand different attribution models. So if you’re using data-driven attribution, the system can more accurately assign value to different touchpoints in the user journey and optimise accordingly.

There’s also more nuance in how Google allocates budget between campaigns. Instead of treating everything equally, it’s getting better at spotting which campaigns or ad groups are likely to deliver the best results and shifting budget in that direction.

Even seasonality and trends are being handled better. Google’s tools can now anticipate surges in traffic and adjust bids proactively, rather than reactively. So when you’re approaching a busy retail period or a product launch, you’re less likely to waste budget or miss opportunities.

Best Practices for Using Smart Bidding

The first big rule of smart bidding: feed the machine good data. If your conversion tracking is off, your results will be too. Make sure you’re measuring the right actions (sales, leads, form fills) and that they’re firing correctly.

You’ll also need enough data to work with. Google recommends at least 15 conversions over the past 30 days for Target CPA and even more for ROAS strategies. The more you have, the quicker the system can learn.

It’s also smart to avoid making big changes too frequently. Every time you adjust your goals, pause campaigns or shake things up, it can reset the learning period. Try to let it stabilise and then analyse trends over a longer period.

Finally, layering in audience signals, like custom segments or first-party CRM data, can really supercharge your results. While the bidding is automated, your strategy around targeting and messaging still matters a lot.

Potential Pitfalls and Considerations

While smart bidding can be incredibly powerful, it’s not foolproof. One common mistake is setting goals that are too aggressive, too soon. If your target CPA or ROAS is completely unrealistic, the system might limit your visibility or stop spending altogether.

Another issue is data quality. If you’ve got duplicate conversions, incorrect attribution or mismatched revenue data, you’re basically feeding the algorithm junk food. It’ll try to optimise based on bad info, and that never ends well.

Then there’s the “black box” factor. Google doesn’t give you full transparency into exactly how decisions are made, which can be frustrating. That’s why regular reporting, testing, and tracking performance against your own KPIs is so important.

A good workaround is to run experiments. You can test one bidding strategy against another in a controlled environment and see which one performs better. It takes a bit of time, but it’s worth it to get data you can trust.

What’s Next for Smart Bidding?

Smart bidding isn’t going anywhere. If anything, it’s going to become even more central to Google Ads in the coming years. As machine learning continues to advance, expect smarter predictions, deeper integrations with other platforms and even more ways to bring in offline and cross-device data.

One thing that’s already happening is tighter privacy controls. With cookies being phased out and user data becoming harder to access, smart bidding will rely more on aggregated signals and predictive modelling. That means advertisers will need to be even more intentional about their tracking setups and data strategies.

We might also see smarter cross-platform bidding, where campaigns optimise not just within Google Ads, but across Google-owned properties like YouTube, Discover, and even Performance Max campaigns that blend search, display, video and shopping all into one.

All signs point to smart bidding being less of a “nice tool” and more of a foundational pillar for digital advertisers. Learning to work with it — not against it — is key.

Wrapping It All Up

If you’re serious about making the most of your Google Ads budget, smart bidding is no longer optional. It’s the engine behind some of the best-performing campaigns out there, and it’s only going to get better.

After chatting with the team at Pitch Black Digital Marketing, it’s clear that the shift toward automation isn’t about giving up control — it’s about using the tools available to work smarter, not harder. They’re helping clients get more out of their campaigns by letting the machines handle the maths, while they focus on messaging, creative and strategy.

So if you haven’t dipped your toe into smart bidding yet, or you’ve been burned by it in the past, maybe it’s time to give it another look. With the right setup, a bit of patience and a focus on clean data, it can do some seriously heavy lifting for your ad campaigns.