Google's suite of auction-time bid optimization strategies. Target CPA, Target ROAS, Maximize Conversions, Maximize Conversion Value. The algorithm uses signals unavailable to manual bidders: device, location, time, audience overlap, search context, and more. The trade-off is control. You give Google more latitude, and the performance data becomes less interpretable. Smart Bidding works well when conversion tracking is clean, the conversion window fits your purchase cycle, and the account has enough volume to learn. When any of those conditions are missing, it optimizes toward noise.
Ad tech glossary
Smart Bidding
Technical definition
Automated bid strategies that use machine learning to optimize for conversions or conversion value in each auction.
The ADLINGO translation
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Related terms
- Ad Rank
- Broad Match Modifier (RIP)
- Discovery Campaigns
- FLEDGE (First Locally-Executed Decision over Groups Experiment)
- FLoC (Federated Learning of Cohorts)
- Local Service Ads
- Match Types
- Maximize Conversion Value
- Negative Keywords
- Performance Max
- PRAM (Partnership for Responsible Addressable Media)
- Privacy Sandbox
Where this shows up
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Monetizing AI Overviews
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