Budgets set the ceiling, but bidding decides how you compete in the auction. In this chapter, we'll unpack the difference between manual and automated bidding, what goals each supports, and when to switch from one to the other.

Key Points:

• A bidding strategy tells Google what you value most: clicks, conversions, visibility, or efficiency. Matching your bid strategy to your campaign goals is critical;
• Manual bidding (Manual CPC) gives you granular control over keyword-level bids. It's best for small campaigns, testing environments, or advertisers who want to micromanage performance;
• Automated bidding (Smart Bidding) uses machine learning to optimize bids in real time based on factors like device, location, audience, and time of day;
• Core automated strategies include:
  • Maximize Conversions → focuses on volume;
  • Maximize Conversion Value → focuses on revenue;
  • Target CPA (Cost per Acquisition) → maintains acquisition costs;
  • Target ROAS (Return on Ad Spend) → balances cost with revenue;
  • Maximize Clicks → drives traffic;
  • Target Impression Share → prioritizes visibility.
• Use manual bidding when you have limited data or want controlled testing;
• Shift to automated bidding once you have at least 15–30 conversions per campaign per month for the algorithm to optimize effectively;
• Automated bidding thrives with good conversion tracking - without it, Smart Bidding is running blind.