Google Ads Bidding Strategies Explained

Short answer: Google Ads has seven main bidding strategies. New campaigns with no conversion data should start with Manual CPC or Maximize Clicks. Once you’ve collected 30–50 monthly conversions, switch to Target CPA or Target ROAS and let the algorithm work.

The 7 Google Ads bidding strategies

1. Manual CPC

You set the maximum bid for each keyword. Google won’t exceed it. This gives full control but requires constant manual management. Best for: campaigns with very small budgets, advertisers who want granular control, or accounts with inconsistent conversion tracking.

2. Enhanced CPC (eCPC)

Manual CPC with a layer of automation. Google adjusts your manual bids up or down (within a limit) based on the likelihood of conversion. A transitional strategy between full manual and full automated bidding.

3. Maximize Clicks

Google spends your budget to get as many clicks as possible. It doesn’t care about conversion rate or CPA — just clicks. Useful for new campaigns to generate traffic quickly, or for brand awareness where clicks matter more than conversions.

4. Target CPA

You tell Google your target cost per conversion, and it adjusts bids in every auction to hit that goal. This is the most common smart bidding strategy for lead generation and service businesses where all conversions are worth roughly the same amount.

Start your target CPA close to your current actual CPA. Once stable, reduce it gradually (10–15% at a time). See what is CPA and what is a good CPA.

5. Target ROAS

You set a target return on ad spend, and Google optimises bids to hit it. Best for ecommerce where different orders have different values — Google will bid more aggressively for users more likely to make a large purchase. See target ROAS bidding explained.

6. Maximize Conversions

Google spends your entire budget to get as many conversions as possible, with no CPA target. A good starting strategy before you have reliable CPA data — lets the algorithm learn what converts, then switch to Target CPA once you have enough data and know your target.

7. Target Impression Share

Google bids to show your ad at a target impression share — either anywhere on the page, at the top, or at the absolute top position. Best for branded campaigns where you want to dominate your own brand name searches. Not recommended for performance campaigns.

How to choose the right strategy

Common mistakes

FAQ

Is Target CPA or Target ROAS better?
Target CPA is better when all conversions are worth the same (e.g. all leads have equal value). Target ROAS is better when conversion values vary (e.g. ecommerce orders of different sizes). If you’re not passing conversion values to Google, use Target CPA.

What happens during the Smart Bidding learning period?
The algorithm experiments with different bids to learn what predicts conversions. During this 1–2 week period, CPA may fluctuate significantly. Avoid making major changes to the campaign during learning — it resets the period.

Can I set a max CPC limit with Target CPA?
Not directly. Target CPA doesn’t have a hard CPC cap. If you need to limit CPC, use portfolio bid strategies with optional max CPC limits, or use Manual CPC with eCPC instead.

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