# Smart Bidding

Smart Bidding is Google Ads' machine-learning bidding system that automatically sets per-auction bids to optimize for a chosen conversion goal. It uses signals like device, location, time of day, audience, and historical conversion data to predict the probability and value of a conversion for every auction.

Canonical: https://myleadsfactory.com/glossary/smart-bidding

## In depth

- Available bid strategies: Target CPA, Target ROAS, Maximize Conversions, Maximize Conversion Value, Enhanced CPC.
- Requires a conversion-tracking foundation. Without imported offline conversions, Smart Bidding optimizes against form-fills which doesn't predict revenue for most B2B accounts.
- Learning phase: 7-14 days during which performance is volatile. Major changes (budget, target, conversion goal) restart the learning phase.
- Recommended minimum: 30 conversions/month for Target CPA, 50/month for Target ROAS. Below those thresholds, manual CPC often outperforms.

## Common misconception

Smart Bidding doesn't 'find' new customers, it predicts which existing auction-winners are most likely to convert at your target cost. It optimizes what you feed it. Feed it form-fills, it bids on form-fillers. Feed it revenue, it bids on revenue.

Source: [Google Ads: About Smart Bidding](https://support.google.com/google-ads/answer/7065882)

## Related terms

- https://myleadsfactory.com/glossary/performance-max
- https://myleadsfactory.com/glossary/offline-conversions
- https://myleadsfactory.com/glossary/target-cpa