Google Ads Bidding Strategies Explained (and When to Use Each)

Google has 8+ bidding strategies. Each is right for a specific situation. The wrong strategy at the wrong time will burn your budget while giving you nothing in return.

Here's the practical guide to picking the right one.

TL;DR

The progression for ecom:

1. Manual CPC (first 7–14 days, learning the account).

2. Maximize Clicks (days 14–30, scaling traffic).

3. Maximize Conversions (days 30–60, after 30+ conversions).

4. Target CPA or Target ROAS (60+ days, stable data).

For PMax: always Maximize Conversion Value (start), Target ROAS (after 30 days).

Strategy 1: Manual CPC

You set the maximum CPC for each keyword. Google shows your ad if your bid is competitive.

Pros

Full control over costs.

Predictable spend.

Best for learning a new account's data.

Cons

Doesn't optimize toward conversions.

Manual work to adjust.

No machine learning leverage.

Use when

Brand new campaign without conversion data.

Tightly budgeted accounts.

Single-keyword high-intent campaigns (brand search).

Strategy 2: Enhanced CPC (eCPC)

Manual CPC, but Google adjusts your bid up or down based on conversion likelihood.

Pros

Slight ML benefit.

Still feels manual.

Cons

Largely deprecated by Google. Now subsumed by smarter strategies.

Use when

Almost never in 2026. Skip it.

Strategy 3: Maximize Clicks

Google maximizes clicks within your budget. You can set a max CPC cap.

Pros

Drives traffic volume.

Useful for new campaigns gathering data.

Cons

Optimizes for clicks, not conversions.

Easy to spend without selling.

Use when

New campaign, want to drive traffic to gather conversion data.

Awareness campaigns where clicks are the goal.

Set max CPC cap to prevent overspending.

Strategy 4: Target Impression Share

Bid to maintain a specific impression share on the page.

Pros

Useful for brand defense.

Predictable visibility.

Cons

Can be expensive — Google bids whatever needed to hit target.

Doesn't optimize toward conversions.

Use when

Brand keywords where you must show up.

Defensive bidding against competitors.

Strategy 5: Maximize Conversions

Google optimizes for the most conversions within budget.

Pros

ML-driven.

No conversion data threshold required.

Hands-off.

Cons

May spend more per conversion than ideal.

No control over CPA or value.

Use when

30+ conversions in past 30 days.

You want hands-off optimization.

Want to scale conversion volume.

Strategy 6: Target CPA (cost per acquisition)

You set a target CPA. Google optimizes to hit it.

Pros

Predictable cost per acquisition.

ML-driven, hands-off.

Cons

May stall delivery if target is too aggressive.

Sometimes misses target by 10–30%.

Use when

Stable conversion volume (50+/month).

Clear CPA target.

Long-term scaling within unit economics.

How to set

Calculate your max CPA:

LTV: ₱2,500.

Margin after COGS: 50% = ₱1,250.

Acceptable CAC payback period: 60 days.

Day-1 revenue: ₱2,500.

Max CPA = day-1 revenue × margin × 0.6 (room to grow) = ₱750.

Set Target CPA at ₱750.

Strategy 7: Maximize Conversion Value

Google maximizes total conversion value (revenue, not count) within budget.

Pros

Optimizes for revenue, not count.

Better than Maximize Conversions for ecom.

Cons

Requires conversion value tracking (purchase value passed to Google).

ML-driven, opaque.

Use when

E-commerce with variable AOV.

Conversion value is properly passed to Google (via Shopify or GTM).

Strategy 8: Target ROAS

You set a target ROAS. Google optimizes to hit it.

Pros

Aligns with margin goals.

Most powerful for scaled ecom.

Cons

Requires significant conversion value data (50+ conversions, ideally 100+).

Can stall if target is too aggressive.

Use when

60+ days of conversion value data.

Clear ROAS target based on margin.

Mature account.

How to set

If your average ROAS is 4.0 and your target is to maintain 3.5 while scaling, set Target ROAS at 350% (3.5x).

If you set it at 500% when current is 4.0, Google will likely reduce delivery — your inventory of profitable clicks is gone.

The progression

For a new ecom Search campaign:

Days 1–14: Manual CPC

Set CPC bids based on Keyword Planner suggestions.

Watch search terms, add negatives.

Drive 30+ clicks per keyword to start gathering data.

Days 14–30: Maximize Clicks (with cap)

If you have over 30 clicks/day per keyword and want more volume.

Cap max CPC to avoid overspending.

Days 30–60: Maximize Conversions or Maximize Conversion Value

Once you have 30+ conversions, switch.

Maximize Conversion Value better for ecom (revenue-focused).

Days 60+: Target ROAS or Target CPA

60+ days, 100+ conversions.

Set targets based on real margin.

For Performance Max

Different progression:

Phase 1 (first 30 days)

Maximize Conversion Value. No target ROAS.

Let it learn freely.

Phase 2 (days 30–90)

Target ROAS at 80% of current ROAS. Gives algorithm room to optimize.

Phase 3 (90+ days)

Target ROAS aligned with margin goals. Adjust monthly based on performance.

Common bidding mistakes

1. Switching to Smart Bidding too early

Without 30+ conversions, the algorithm has nothing to optimize toward.

2. Setting Target CPA/ROAS too aggressive

Algorithm can't deliver, campaign stalls.

3. Frequent strategy changes

Each switch resets learning. Wait at least 14 days between changes.

4. Manual CPC at scale

Past ₱20K/day, manual bid management is impossible. Smart bidding becomes mandatory.

5. Not tracking conversion value

Without value tracking, Maximize Conversion Value can't function. Set up value tracking.

When to override Smart Bidding

Smart bidding is good but not perfect. Override when:

A specific high-margin product needs more impression share.

You want to defend brand bids regardless of cost.

Manual control during a major sale event.

For specific keywords or products, Manual CPC or Target Impression Share can outperform.

Bid adjustments

Even with Smart Bidding, you can apply adjustments:

Device bid adjustment (+30% mobile, -20% tablet).

Location bid adjustment (+50% Metro Manila).

Audience bid adjustment (+30% past customers, -50% new visitors).

Smart Bidding "considers" these as signals but doesn't strictly follow.

Want help with bidding strategy?

Bidding strategy mistakes are expensive. My Google Ads Specialist service includes bidding setup and optimization. Or learn the system in the Google Ads Course Philippines.

Related reading:

Google Ads Quality Score Guide

Performance Max Deep Dive

Google Search Ads: Complete Guide