Skip to main content

GAds: Changes - Smart Bidding strategies for Search campaigns

June 2022 

Google is changing how bid strategies are organized for Search campaigns to focus on 2 main performance goals:

  1. Conversions
  2. Conversion value

You’ll still be able to use Target CPA and Target ROAS as bid strategies. They will simply be bundled with the Maximize conversions and Maximize conversion value bid strategies, respectively. This means that:

  • Maximize conversions will have an optional target CPA
  • Maximize conversion value will have an optional target ROAS

    There will be no impact to bidding behavior due to this update. Using the optional target CPA and target ROAS fields will optimize your performance the same way Target CPA and Target ROAS bid strategies did until now.

Screenshot 2022-06-10 at 10.26.45 AM.png

 

How it works

When you select Maximize conversions or Maximize conversion value bid strategies, you can choose to add an optional target CPA and target ROAS instead of creating standalone strategies for Search campaigns.

  • Maximize conversions using a target CPA:
    • Google Ads automatically sets bids to help get as many conversions as possible at the target cost-per-action (CPA) you set.
    • Some conversions may cost more or less than your target.
    • This strategy will work as the Target CPA bid strategy does today.
  • Maximize conversion value using a target ROAS:
    • Google Ads automatically sets bids to help get as much conversion value as possible to achieve an average return on ad spend (ROAS) at the target you set.
    • Some conversions may have a higher or lower return than your target.
    • Within the Maximize conversion value strategy, this target ROAS is the average conversion value you’d like to get for each dollar you spend on ads.
    • Enter a value as a percentage using this formula: Conversion value ÷ ad spend x 100% = target ROAS percentage. For example, if your goal is to get an average of $5 in sales for each $1 you spend on ads, your target ROAS would be 500%.
    • This strategy will work as the Target ROAS bid strategy does today.
Note: When the optional targets aren’t set, Maximize conversions and Maximize conversion value will still behave in the same way that they do today.