Automated bidding in Google Ads promises to simplify campaign management and boost results – but it’s not foolproof.
With the right bidding strategy, you can take control, optimize performance, and drive better conversions.
Let’s break down the essentials to get started.
Manual CPC: The best starting point for new campaigns
The simplest way to launch a new campaign, especially in a new or low-budget account, is to start with Manual CPC bidding.
This lets you test comfortable bid levels and adjust based on results.
Monitor these campaigns closely:
Start with a bid.
Increase it if volume is low.
Track ad position, CTR, CPC, and conversions.
For example, if impressions are too low, your bid is likely too low.
If you see high conversions, clicks, and a strong Impr. (Abs. Top) %, test lowering your bid to reduce CPC and CPA.
It’s a constant balance to find the optimal bid for your budget.
You can add negative keywords based on the search terms you see coming through and better control your spend, as there won’t be any surprises with average CPCs.
However, automated bidding strategies like Maximize Conversions in a new campaign or ad account may result in extremely high CPCs for your target keywords.
For instance, a small business may find a $100 CPC unacceptable, and spending can escalate quickly.
Once you’ve gathered enough performance data from impressions, clicks, and conversions, you can test switching to automated bidding strategies like Maximize Conversions.
Alternatively, if you have a higher budget and are prepared to spend more upfront to collect data, you can launch a new campaign using Maximize Conversions immediately.
Dig deeper: There is no ‘best’ Google Ads bidding strategy, study finds
Pairing keyword match types and bidding strategies for success
Keyword match types and bidding strategies will vary depending on your budget and the average CPC in your industry.
Broad match keywords perform significantly better with automated bidding (i.e., Maximize Conversions) because it can automatically test many variations of your broad match keywords to find the best search terms with high conversion rates.
This is much more difficult to achieve with manual bidding for broad match keywords.
For more specific terms, often used in B2B lead generation, phrase and exact match are preferred to keep search terms focused and avoid wasting money on irrelevant searches.
Both automated and manual bidding can be effective with these match types, as you may not want to target a wide range of variations or related terms.
Many industries rely on extremely specific keywords where slight variations or related terms no longer make sense to target.
Industries like home services, local businesses, attorneys, medical, education, insurance, and ecommerce often benefit from using broad match with automated bidding since many relevant search terms are available.
Testing broad match keywords with automated bidding is worthwhile if you have the budget.
Broad match has evolved significantly, now factoring in elements such as:
The user’s recent search activities.
The content of the landing page.
Other keywords in an ad group to better understand keyword intent.
In my experience, this approach has been far more effective than the old broad match, which attempted to expand to terms it deemed related.
However, negative keywords remain critical and should always be a priority on any PPC management checklist.
Maximize Conversions: Benefits, challenges, and best practices
The Maximize Conversions bidding strategy is often used to gather data for a specific ad campaign.
It can initially result in high CPCs and CPAs because it tests various combinations to determine what generates the most conversions over time.
Unlike a human monitoring CPC and CPA during a new campaign launch, Google focuses on maximizing conversions within your budget but lacks the data to perform optimally at the start.
In other words, Maximize Conversions doesn’t immediately deliver the results its name suggests.
If enough conversions aren’t gathered during the learning phase, it may spend significant amounts with no conversions.
This occurs because platforms like Google Ads, Microsoft Ads, or Meta Ads are trying to identify the right audience or keywords that could convert.
If the initial keywords or audience don’t work, the system will test others.
This is not an instant process, and in some cases, hundreds of clicks and substantial costs may yield no conversions.
While results typically improve if the right audience or keywords are targeted, success is not guaranteed.
Many advertisers pause campaigns after excessive ad spend with no conversions, where testing manual bidding first might have been a better option.
Maximize Conversions can be particularly effective with audience targeting in Display Ads or Video campaigns for lead generation or ecommerce.
These campaign types often launch well with Maximize Conversions because their CPCs tend to be low, and automation can efficiently test various audiences or placements much faster than manual CPC bidding.
For these types of campaigns, a tCPA or tROAS may not even be necessary if the strategy is delivering ample conversions.