Google Ads Smart Bidding Example
Understanding Google Smart Bidding with Maximise Conversions
When it comes to running successful Google Ads campaigns, one of the most important elements is having the right bidding strategy (as well as tracking). A common approach many advertisers rely on is manual CPC (cost-per-click), where you set your own bids. However, Google’s Smart Bidding strategies—particularly Maximise Conversions – can sometimes outperform manual bidding by taking into account numerous data signals beyond simply the keyword itself.
In this post, we’ll explore how Maximise Conversions works, why similar keywords can have drastically different costs, and how relying solely on manual bids can sometimes cause you to miss out on valuable leads.
What is Google Smart Bidding?
Google Smart Bidding is a subset of automated bid strategies in Google Ads that use machine learning to optimise for conversions (or conversion value) in each auction. By tapping into vast amounts of data, Smart Bidding adjusts your bids in real time based on signals such as:
• The user’s device
• Geographic location
• Time of day
• Remarketing lists
• Browser type
• And more
This is sometimes referred to as a “contextual” approach to bidding because it goes far beyond what a single human could adjust manually in real time.
Maximise Conversions in Action
Under Maximise Conversions, Google Ads sets bids automatically to help you get as many conversions as possible within your budget. It essentially looks at all possible signals and determines the likelihood of a click turning into a conversion, then bids accordingly.
Example: Similar Keywords, Different Costs
This actually happened with a client of mine, which is inspiration for this blog post.
Imagine you have two very similar keywords. One is “___ guidance,” and the other is “___ assessment.” Even though they look almost identical, the Maximize Conversions strategy may decide to bid very differently on each.
• Keyword A has a CPC of £1.42 in the case because Smart Bidding sees fewer conversions coming from it and adjusts the bid down accordingly.
• Keyword B has a whopping £64.89 CPC as the algorithm detects signals indicating that visitors searching for Keyword B are more likely to convert.
Because Smart Bidding is not just reacting to your set maximum CPC but also to dozens of subtle signals (like searcher intent, query context, or historical performance), you’ll sometimes see big differences in cost—even for keywords that look nearly the same on the surface.
Why You’d Miss Out with Manual CPC
With manual CPC, you’re setting a static bid for each keyword. While you can adjust those bids over time based on performance, it’s impossible to match Google’s machine learning speed or its ability to process an array of data signals at once.
You would rarely, if ever, set a max CPC of over £50. It would be crazy but in this situation, the smart bidding knew this visitor would likely convert so bid higher to get the conversion.
If manual bidding is too conservative, you might:
1. Appear lower in the search results than competitors who are outbidding you.
2. Lose out on clicks from high-intent audiences, especially if your manual bid isn’t high enough to win those valuable impressions.
3. Miss out on conversions altogether by not being visible at the top when it matters most.
On the flip side, if your manual bid is too high, you risk overspending on clicks that don’t convert.
Key Takeaways
1. Maximize Conversions uses additional signals: Google can detect the likelihood of conversion at auction time. It automatically increases or decreases bids based on that real-time data to help you get as many conversions as possible.
2. Similar keywords can have vastly different costs: Because the algorithm sees differences in the user's journey and the probability of conversion, two closely related keywords might end up with very different CPCs.
3. Manual CPC can limit performance: Human oversight alone can’t account for all the contextual factors that happen at the moment an ad is shown, meaning you might miss valuable clicks – or overpay for clicks – if you try to do all the bidding manually.
4. Automation can save time and improve results: Letting Google’s machine learning handle real-time adjustments frees you to focus on other tasks, like refining ad copy or landing pages for improved user experience and higher conversion rates.
Best Practices for Using Maximise Conversions
1. Set a Realistic Budget
Make sure you have enough daily budget for Google to gather useful data. Overly restrictive budgets might limit the algorithm’s potential. When I took over this account, they were campaigns with £5 daily budgets. They were never going to work.
2. Use Conversion Tracking
Accurate conversion tracking is crucial. Ensure your tags are set up correctly so Google can optimise bids based on real results. If you run HubSpot, you can just send the leads straight back to ads ensuring maximum accuracy.
3. Review Performance Regularly
Even though Smart Bidding is automated, keep an eye on your campaigns to spot unusual changes. Look at CTR, CPC, and conversion rates to see if the strategy is performing as expected.
4. Combine with Smart Creative
Match Smart Bidding with well-structured ad groups and relevant ad copy. The clearer your ad experience, the more likely you’ll attract high-intent users.
5. Be Patient
Google’s algorithm often needs time to learn. Avoid making too many changes too quickly, or the learning process resets.
Final Thoughts
Moving from manual CPC to a Smart Bidding strategy like Maximise Conversions or Maximise Conversion Value is a major game-changer for many advertisers. While it might seem daunting at first to let Google handle your bids, the payoff in time savings and potential performance gains is often worth it.
If you notice very different CPCs for keywords that appear similar—like “___ guidance” vs. “___ assessment”—it’s probably due to the wealth of real-time signals Google evaluates when deciding how to bid.
Lean into these insights, trust the algorithm, and remember that automation can free you up to work on the strategic parts of your campaigns that truly move the needle.
Ready to let Google do the heavy lifting? Give Smart Bidding a try and see how data-driven bidding can help elevate your campaigns to the next level!
Ben has a BEng (Hons) in Computer Science and 20 years of experience in online marketing, specialising in SEO, lead generation and affiliate marketing. After spending over a decade as an igaming affiliate, he has decided to concentrate on GA4 training and SEO Audits.