Do you know how to choose the right smart bidding strategy? Do you know how to set it up to achieve a return on investment?


Does  Smart Bidding strategy tell you anything?

It is definitely a good idea to first check the conversions you have added to AdWords. Although, Smart bidding strategies are optimized for any conversion.

A conversion is an action that is counted when a user clicks on, for example, a text ad or views your video ad and then makes an online purchase or calls you to order his merchandise. We wanted to explain this term to you a bit, as this term will be used more than once in the text.


CPA smart strategy

Efektívna komunikačná a bidding stratégia

The first smart bidding strategy is suitable for those who do not have too high budget. Therefore, for campaigns with a limited budget and no specific CPA, a strategy to maximize conversions is appropriate.

Do you know what is CPA?

CPA (Cost per action) refers to the price per share or acquisition of a customer. It indicates the price you will pay for a visitor of your website to take a specific action. It can be the purchase of a product, signing up in some web form, it can be a registration or ordering your newsletter. This means that the marketing consultant pays for advertising only when an action takes place. But let us go back to strategy. This uses the maximum of daily budget.

However, a minimum of 15 conversions per month is required to achieve the desired result. It delivers maximum conversions, regardless of value, and can evaluate user signals based on their behavior. It ignores all bid adjustments (adjustments to the appropriate cost-per-click settings – this allows you to reach an interesting place in the search, so you can increase your conversion chances). The exception is 100% device bid. This Smart Bidding strategy strives to deliver the maximum number of conversions, but regardless of their value.

Smart Bidding strategy – eCPC

The following smart bidding strategy will be appreciated especially by those who launch new campaigns. This is an improved cost-per-click (eCPC). ECPC automatically adjusts manual bids per click based on the likelihood that a sale or conversion will occur on your website. It uses a limit on your maximum CPC bids to optimize conversions. It helps increase conversions. Here, too, at least 15 conversions per month are required to work properly. If you do not reach them, it does not adjust the bids. Here, it is a good idea to edit bids for your audience. The advantage is compatibility with third party tools.

tROAS – target return on investment for advertising

If you consider the return on investment in advertising, a smart bidding strategy, the so-called Target Return on Advertising Investment (tROAS) is the best option for you. You can use it only if the conversion value is measured. If you want it to work properly, it requires at least 30 conversions per month for the search network and 50 conversions for shopping campaigns. The optimal amount is 100 or more conversions with this strategy. As with maximizing conversions, this strategy ignores bid adjustments, up to 100% adjustments for devices.

Smart Bidding strategy – tCPA

If you have an unlimited budget, a smart bidding strategy, the so-called target cost per acquisition (tCPA) is best option for you. We recommend using it only for campaigns with at least 30 conversions per month. Device bid adjustments adjust CPA, also ignore audience bid adjustments, and accept 100% non-device adjustments.

With the last two strategies, it is not a good idea to interfere with your campaign settings, although you may notice that your performance fluctuates. It depends on the number of conversions. With a small number of conversions, larger fluctuations can occur, so the determination phase can be 2-3 weeks, with a higher number, this phase is shortened to 24-72 hours.

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