12 Google Ads Bidding Strategies (+ When to Use Each)

Google Ads bidding strategies determine how much you pay to show your ads, who sees them, and how often they appear. There is a range of strategies to choose from — and choosing the right one is key to reaching your business goals.

You can have the perfect ad copy, target the right keywords, and optimize your landing pages — but with the wrong bidding strategy, your Google Ads budget can disappear fast.

“Using an effective bid strategy is key to running a well-optimized campaign,” says HawkSEM Associate Director of SEM Rachel Corak.

“Understanding the nuances between bid strategies and when to apply them can make all the difference in maximizing ROI.”

Below, we’ll break down 12 Google Ads bidding strategies — and when to use each.

What is Google Ads bidding?

Google Ads bidding is how advertisers set or automate the maximum amount they are willing to pay for a click, impression, or conversion to compete for ad placement in Google’s ad auctions.

How does bidding work?

Google Ads bidding works through a real-time auction process that runs every time someone searches or visits a site where ads can be shown.

• When a user searches on Google or visits a site in the Google Display Network, Google runs an auction among advertisers targeting that query, placement, or audience.
• Your bid tells Google how much you’re willing to pay for a click, impression, or conversion.
• Google calculates your ad’s rank based on your bid and how closely your ad matches what the user is looking for.
• The highest-ranked ads appear in the most visible spots.
• You only pay when a user clicks on your ad.

This process — which takes milliseconds — ensures that users see ads relevant to their needs and that advertisers have a fair chance to show their ads.

Types of Google Ads bidding

You can use different methods to set your ad spend.

Each offers a unique way to manage your bids, depending on your single campaign goals and how much control you want over your spending.

Here are three types of bidding on Google Ads:

1. Manual bidding
2. Automated bidding
3. Smart bidding

1. Manual bidding

Manual bidding lets you set your own bids for specific ad groups or keywords.

This method gives you direct control over your advertising costs. You decide how much you will pay per click on each ad.

For example, if you observe that your ads perform better on weekends or at certain times of day, you might increase your bids during those periods to capture more visibility and traffic.

2. Automated bidding

Automated bidding lets Google manage your bids. It automatically sets bid amounts based on your campaign goals, such as increasing website visits or enhancing ad visibility.

This system uses machine learning to estimate the most effective bid for each auction, which optimizes your chances of achieving your advertising objectives without manual intervention.

For example, suppose your goal is to increase the number of people who see your ad within a certain budget. In that case, Google will dynamically adjust your bids to maximize your ad’s visibility without exceeding your spending limit.

3. Smart bidding

Smart bidding is a subset of automated bidding focused on conversion-based goals like generating leads or sales.

It uses sophisticated machine learning algorithms to adjust your bids in real-time. It considers a range of signals that indicate the likelihood of a conversion.

Smart bidding includes options like Target cost per action (CPA), where Google aims to secure as many conversions as possible at or below your specified cost per action.

12 bidding strategies on Google Ads

There are different strategies for both manual and automated bidding. Let’s look at them individually:

Manual bidding strategies

1. Manual CPC
2. Manual CPM
3. Maximize clicks

Automated bidding strategies

4. Enhanced CPC
5. Target impression share
6. Automated CPM
7. Maximize conversions
8. Maximize conversion value
9. Target CPA
10. Target ROAS

Advanced bidding strategies

11. Portfolio bid strategies
12. Shared budgets

1. Manual CPC

Manual cost per click (CPC) bidding allows you to set the maximum amount you want to pay for each click on your ads.

You control bids at the keyword or ad group level, giving you direct oversight of spend, cost efficiency, and how bid adjustments might impact your Quality Score.

This strategy allows you to allocate higher bids to keywords, audiences, or time periods that consistently drive more valuable traffic, while keeping tighter limits on lower-performing areas.

Pros

• Total control over bid amounts
• Easier to manage costs directly
• Can reduce spend when optimized well

Cons

• Requires constant monitoring and adjustment
• Time-consuming to optimize effectively
• Risk of overbidding and increased costs

When to use

Manual CPC bidding works well when you need precise control over how much you’re spending on each click, have strong historical data, or are running smaller, more focused search campaigns.

This strategy also works best when you already know which keywords or times of day drive the strongest performance.

This allows you to allocate your budget more intentionally by setting maximum CPCs at the keyword or ad group level.

Further reading: 22 Ways to Lower Your Cost Per Click on Google (+Checklist)

2. Manual CPM

Manual CPM (cost per mille) bidding lets you set a fixed price for 1,000 impressions of your ad.

This strategy is effective for increasing brand awareness by ensuring your ads are seen by a large number of people.

It’s particularly useful when you want to broadcast your message widely without targeting specific user actions like clicks or conversions.

Pros

• Good for building brand visibility
• Fixed costs for impressions
• Effective control over ad exposure

Cons

• No guarantee of click-through or conversions
• Can be less efficient with budget
• Not targeted toward direct response objectives

When to use

Manual CPM is ideal when your advertising goal is to maximize visibility, such as promoting a new brand or product.

3. Maximize clicks

Maximize clicks automatically adjusts your bids to secure the most clicks possible within your set budget.

Google uses auction-time signals to raise or lower bids dynamically, helping you capture clicks efficiently without manual bid management.

Pros

• Fully automated
• Designed to maximize web traffic
• Helpful for gaining visibility quickly

Cons

• Doesn’t prioritize conversion quality
• Can drive less qualified traffic
• Spend may increase without significant ROI

When to use

Maximize clicks is best for top-funnel goals, such as launching new products or during promotional events, to quickly draw attention and visitors.

It is also suitable for testing the market response to new offerings or expanding your audience base in new geographic regions.

4. Enhanced CPC (eCPC)

Enhanced cost per click (eCPC) is a semi-automated bidding strategy that fine-tunes your manual bids by raising them for clicks likely to convert and lowering them for less promising ones.

You still set base bids, but Google uses historical and auction-time signals to modify them in real time.

This strategy combines the precision of manual bidding with the insights of automated algorithms, which helps prioritize higher-intent clicks without fully handing bidding over to Google.

Pros

• Improves conversion efficiency with smart bid adjustments
• Retains manual bid control while adding automation
• Adapts bids based on conversion likelihood

Cons

• Fluctuating ad spend may challenge budget management
• Requires accurate conversion tracking to be effective
• Less powerful than fully automated conversion-based strategies

When to use

Enhanced CPC works best when you have reliable conversion data but aren’t ready to fully transition to automated bidding.

This strategy is beneficial for businesses that want more efficiency than manual CPC while maintaining control, especially when performance varies by keyword, device, or audience.

5. Target impression share

Target impression share bidding is designed to show your ad a specific percentage of the time for eligible searches.

To do this, you set an impression share goal and choose where you want your ads to display: the top of the page, absolute top, or anywhere on the search results page.

Google then adjusts bids to try to meet that goal within your budget.

Pros

• Helps increase your ad’s visibility
• Good for maintaining a strong presence in search results
• Allows you to target based on ad placement goals

Cons

• Can become expensive because it prioritizes visibility
• May lead to higher spending with less focus on conversions
• Requires careful monitoring

When to use

Target impression share is best for brand protection, competitive keyword defense, or high-priority campaigns where brand visibility is key.

Further reading: 7 Easy Ways to Improve Impression Share (+ Common Challenges)

6. Automated CPM (cost per mille)

CPM-based automated bidding strategies focus on maximizing ad visibility rather than clicks or conversions.

Instead of setting manual bids, Google automatically adjusts bids to optimize impression delivery based on the chosen cost per mille (CPM) goal.

This bidding strategy is frequently used in Display and Video campaigns where the primary objectives are awareness and reach.

vCPM (viewable cost per thousand impressions)

vCPM ensures advertisers only pay for viewable impressions, meaning the ad has to appear on a user’s screen to count.

A viewable impression is defined as:

• Display ads: at least 50% of the ad is visible for one second or longer
• Video ads: at least 50% of the ad is visible for two seconds or longer

Target CPM

Target CPM lets advertisers set a target cost per 1,000 impressions, and Google optimizes bids to deliver impressions at or around that price while maximizing reach within budget.

Pros

• Optimized for brand awareness and reach
• Reduces wasted spend on non-viewable impressions (vCPM)
• Predictable impression costs (target CPM)

Cons

• Not optimized for clicks or conversions
• Performance is harder to tie to ROI
• Not helpful for lower-funnel goals

When to use

CPM-based automated bidding works best for brand awareness, reach, and visibility campaigns, especially on Display and YouTube.

Use vCPM when viewability matters, and target CPM when maintaining a consistent impression cost is the priority.

7. Maximize conversions

Maximize conversions automatically adjusts your bids to get as many conversions as possible within your budget.

This strategy analyzes current data and past performance to place effective bids at each auction, aiming to turn more viewers into customers.

It’s useful for Google Ads campaigns focused on increasing actions like sales, sign-ups, or other desired outcomes.

Pros

• Increases the number of conversions by using effective bid strategies
• Saves time by managing bids automatically
• Works well with real-time data to capture more conversion opportunities

Cons

• Needs a good amount of historical data to function optimally
• Requires accurate setup of conversion tracking
• Could result in higher costs if not carefully watched

When to use

Maximize conversions is best for targeted campaigns like a sign-up drive for a new service or a limited-time offer on a product.

It’s effective when your priority is to increase specific user actions, such as completing purchases or registrations.

It allows you to focus more on outcomes and less on managing bid details.

Further reading: What are Google Ads Enhanced Conversions? + Setup Guide & Expert Tips

8. Maximize conversion value

Maximize conversion value is an automated bidding strategy that adjusts bids in real time to drive the highest total conversion value within your budget.

Instead of prioritizing the number of conversions, Google focuses on clicks most likely to generate higher-value purchases or leads.

This strategy evaluates each potential conversion’s value and targets those that offer the highest returns.

Pros

• Focuses on earning higher revenues per conversion
• Automatically adjusts bids for high-value opportunities
• Helps optimize your return on ad spend

Cons

• Might increase the average cost per conversion as it seeks more valuable leads
• Requires detailed input on the value of different conversions
• Needs well-set conversion tracking to be effective

When to use

Maximize conversion value bidding is ideal for special promotions or sales events in an online store where you want to push high-margin products, such as luxury goods, during a holiday sale.

It helps ensure that your advertising budget is focused on products that will yield the highest revenue per sale.

9. Target CPA (cost per action)

Target CPA bidding lets you decide how much you’re willing to pay for each conversion, such as a sale or a sign-up.

TCPA automatically adjusts your bids to help you get as many conversions as possible at your set price.

It’s different from just aiming for more conversions because it keeps your budget in check by focusing on the cost of each conversion.

Pro tip: Remember, the “A” in CPA here stands for Action, which can include many conversion types — not just acquisitions or sales.
Pros

• Helps control the cost of each conversion
• Optimizes bids to achieve a consistent cost per conversion
• Useful for budget management and predictable spending

Cons

• May reduce exposure if the set CPA is too low
• Requires historical conversion data to set a realistic CPA
• Could limit the volume of conversions if CPA targets are very aggressive

When to use

Target CPA is great if you know how much you want to spend on each conversion.

For example, if you can afford to spend $10 for each new subscriber, use this strategy to keep costs within your budget while trying to gain as many subscribers as possible.

10. Target ROAS

Target return on ad spend (ROAS) is a smart bidding strategy that lets you set a goal for the revenue you want to get (target return) for every dollar you spend on ads.

Google adjusts bids in real time to maximize conversion value while aiming to meet your specified ROAS target.

This is useful for ensuring that your online advertising campaigns lead to measurable financial results.

Pros

• Optimizes bids to maximize revenue relative to ad spend
• Bids adjust to achieve specific revenue goals
• Connects ad spending to business outcomes

Cons

• Requires detailed setup and precise revenue tracking
• May overlook smaller, yet profitable conversions
• Needs extensive data to optimize effectively

When to use

Target ROAS bidding works well for ecommerce advertisers who understand their product margins and need to ensure that ad spend translates into profitable sales.

Use this strategy when maintaining a specific return is more important than maximizing volume — for example, targeting $5 in revenue for every $1 spent on ads.

(Image: HawkSEM)

Advanced bidding and budget controls

In addition to standard bidding strategies, Google Ads offers other advanced tools that help manage performance and spend across multiple campaigns:

11. Portfolio bid strategies

Portfolio bid strategies allow you to apply a single automated bidding strategy across multiple campaigns, ad groups, or keywords.

These strategies are useful when you want consistent results and metrics across multiple campaigns, whether they are search campaigns, display campaigns, or even video campaigns focused on driving video views.

They can help you meet your overall performance targets more efficiently.

12. Shared budgets

If you manage multiple campaigns, shared budgets let you distribute your daily budget flexibly across them based on their performance.

This is helpful if you’re unsure which campaigns will perform best. And you want to ensure no opportunity is missed due to budget constraints.

Or when you’re running campaigns with different bidding strategies, such as manual CPC bidding for your branded keywords and Target CPA for your generic keywords.

How to choose the right bidding strategy

This depends on your campaign goals, budget, and the time you can dedicate to managing your ads.

If you’re setting up a new campaign, consider these questions to choose the right bidding strategy:

What is my primary goal for this campaign? Want to control cost per conversion? Look at Target CPA. If you’re focusing on video campaigns and want to optimize for cost-per-view, CPV bidding might be the right choice.

How much am I willing to spend on a conversion? If you have a specific cost in mind, Target CPA might be right for you.

Do I need to maximize the return on each dollar spent? If yes, then Target ROAS could be the ideal strategy.

Am I trying to gain visibility or drive specific actions? CPM or Target Impression Share strategies are suitable for visibility. For actions, look at Maximize Conversions or Enhanced CPC.

How much time can I commit to managing bids? If you prefer a set-it-and-forget-it approach, automated strategies like Maximize Conversions or Maximize Clicks may be better.

“While automated bidding strategies rely on machine learning, our team focuses on strategically understanding when to apply different bidding strategies,” says Corak.

“It’s also crucial to refine and optimize these strategies over time. This can mean adjusting ROAS or CPA targets, or even changing bidding strategies altogether when the campaigns have acquired enough data to enhance further.”

Choosing the best bidding strategy can be tricky since more than one might fit your exact use case.

Further reading: PPC Bid Management: A Complete Guide (+ 8 Proven Strategies)

Best practices for optimizing Google Ads bidding

Choosing the best bidding strategy is about more than picking an option from a dropdown.

The most successful advertisers pair the right strategy with realistic expectations, clean data, and ongoing performance monitoring.

1. Start with manual bidding

If you’re launching a new campaign or account, use manual bidding to gather data while establishing baseline performance.

Choosing this strategy first gives you visibility into cost-per-click, keyword performance, and conversion behavior before handing full control to automated bidding — and makes the automated bidding process more effective.

2. Don’t change strategies too frequently

Switching bidding strategies can lead to unstable performance.

Like Google AI and Performance Max campaigns, Google relies on a learning phase to optimize bidding decisions based on historical performance and user signals.

Instead, make changes only when you have enough data to support a clear trend.

3. Set realistic targets

Overly aggressive CPA or ROAS targets can restrict delivery and limit volume. When setting targets, base them on historical performance, not ideal outcomes. You can always tighten targets gradually once performance stabilizes.

4. Monitor performance weekly

Review performance weekly to spot trends. Focus on key metrics like conversions, CPA, ROAS, impression share, and budget pacing to determine whether your bidding strategy is aligned with your goals.

The takeaway

The right bidding strategy can help you boost ad performance, conversion rates, and return on ad spend.
But running a successful Google Ads account that hits your business goals requires a team of specialists.

HawkSEM is a top PPC agency that can improve your click-through rate (CTR) and conversions through custom strategies — from landing page optimization to choosing the best bidding options for your brand.

You deserve to get the most conversions out of your bidding strategies. Contact us today.

This article has been updated and was originally published in May 2024.