What are the Core Benefits of Google Ads Automated Bidding?

By January 17, 2024 February 15th, 2024 PPC
Benefits of Google Ads Automated Bidding

In the fast-paced world of online marketing, Google Ads stands out as a strong tool for businesses to connect with the people they want to reach. And right in the center of this tool is a super useful feature called automated bidding. This feature is a big deal in the world of online ads.

Automated bidding in Google Ads is like having a smart helper that uses machines to figure out the best bid for each ad competition. This is different from the old way, where advertisers had to set the bids themselves.

With automated bidding, Google Ads takes care of the hard work, so advertisers can concentrate on the big-picture strategy. It’s like having a tech-savvy assistant making sure your bids are just right! According to a study, “More than 80% of advertisers use automated bidding to improve ad performance and free up time”.

The arrival of automated bidding has completely changed how we handle bids. It’s like a champion for campaigns, making them perform even better by adjusting bids right when it matters. This smart feature automatically changes bids based on the chances of someone clicking and doing what the ad wants, like making a purchase. This not only saves time but also makes spending on ads work way better, giving you more value for your money.

In the upcoming parts, we’ll explore more about why Google Ads automated bidding is awesome and how it’s influencing the future of online advertising.

What is Google Ads Automated Bidding?

Google Ads Automated Bidding, as the name suggests, is an automated process of managing bids for your ads on the Google Ads platform. It leverages machine learning algorithms to optimize bids in real-time, aiming to get the most value out of your ad spend.

Unlike manual bidding, where advertisers decide the bids for their ads, automated bidding is like having a smart helper. It looks at lots of things like the type of device people use, where they are, what time it is, and more. Then, each time your ad could show up, it automatically adjusts the bids based on all these details.

So, whenever your ad has a chance to pop up, Google Ads figures out the best bid to reach the goal you set, whether it’s getting more clicks, being seen more, getting more people to take action, or getting more value from conversions. It’s like having someone who customizes your bids for every situation.

The main aim of automated bidding is to make sure you get the most value from your advertising money. It does this by looking at what happened before and learning from it. This way, it figures out the best spots for your ads that are likely to get more people to take action. 

This smart helper then uses this knowledge to make better choices when deciding how much to bid. This could mean your campaigns do even better, and you get more value for the money you spend. It’s like having a friend who’s good at making sure every penny you put into ads counts. Google Ads have an average 8:1 return on investment.

Types of Google Ads Automated Bid Strategies

Google Ads offers several types of automated bid strategies to help advertisers achieve their specific campaign goals. Here are the seven key types:

Google ads automated ads strategy

  1. Maximize Clicks: This is the simplest way to bid for clicks. You set a budget, and Google Ads does the rest. It uses machine learning to adjust bids in real-time based on factors such as ad quality, keyword competitiveness, and user behavior. Because “The average click-through rate for Google Ads is 4-6%”.
  2. Target Search Page Location: This strategy aims to show your ad on the first page of Google search results or in the top positions.
  3. Target Outranking Share: This strategy helps your ad to outrank another domain’s ads.
  4. Target Cost-Per-Acquisition (CPA): With this strategy, you set your desired average cost per conversion, and Google Ads uses your target CPA to set a bid based on the likelihood of the ad converting.
  5. Enhanced Cost-Per-Click (ECPC): This strategy adjusts your manual bids to help you get more conversions. It raises your bid for clicks that seem more likely to lead to a conversion and lowers it for clicks that seem less likely.
  6. Target Return on Ad Spend (ROAS): This strategy sets bids to help get as much conversion value as possible at the target ROAS.
  7. Maximize Conversions: This strategy uses advanced machine learning to automatically optimize and set bids for each auction. It aims to get the most conversions for your campaign while spending your budget.

Each of these strategies serves a unique purpose and can be used based on the specific requirements and goals of your campaign. In the following sections, we will delve deeper into each of these strategies, focusing specifically on Maximize Clicks and Target CPA.

Following are the core benefits of Google Ads Automated Bidding

Google Ads Automated Bidding offers a multitude of benefits that can significantly enhance the performance of your advertising campaigns. Here are the core benefits:

Improved Efficiency

Automated bidding is like having a smart assistant for bids. It uses machines that are super good at learning to figure out the best bids right when you need them. This way, you don’t have to spend a lot of time guessing or figuring it out yourself. It’s like a time-saver that makes sure your bids are always in top shape without you having to work too hard.

Enhanced Performance

It isn’t just about setting bids and forgetting them—it’s like having a helper who keeps an eye on each auction and tweaks your bids to make things work even better. So, your ads can perform at their best, reaching more of the right people without you having to constantly check and adjust things. It’s like having a friend who always makes sure you’re putting your best foot forward.

Increased Reach

When you use automated bidding, it’s like having a strategy that’s super good at making your ad reach more people. It figures out the best bids for each time your ad shows up, so you’re getting all the folks who might be interested in what you have to offer. It’s like having a buddy who can get your message to a bigger crowd.

Cost-Effective Advertising

Automated bidding is like a money-saver. It keeps a close eye on your bids and adjusts them in real-time so you’re not paying too much for clicks. This way, your ads work better, and you’re not spending more money than you need to. It’s like having a financial advisor for your ads, making sure you get the most bang for your buck.

Real-Time Optimization

Automated bidding is like having a speedy friend who can adjust your bids right away. So, if things in the market change, your bids change too—quickly and snappy. It’s like having someone who’s always on their toes, making sure your ads stay on top of what’s happening at the moment.

Flexibility and Control

With automated bidding, Google Ads takes care of managing your bids, but don’t worry; you’re still the boss of your budget. You can decide how much you want to spend, and if you ever want to switch up your bidding plan, you can do it whenever you like. It’s like having a trusty assistant who follows your lead and is ready to adapt whenever you say the word.

Data-Driven Decision Making

Automated bidding is like having a brainy friend who looks at all the things that happened before and figures out what might happen next. It uses past info to predict how well your ads will do in the future. This way, the decisions it makes are based on facts and numbers, making it easier for you to know what’s going to work best. It’s like having a friend who uses information to make smart choices.

Improved Targeting

It helps you aim your ads better. It figures out the best bids by looking at how likely it is that someone who clicks on your ad will do what you want, like making a purchase. It’s like having a guide that helps your ads hit the right target and get the results you’re looking for.

Continuous Optimization

Automated bidding is like a learner. It keeps figuring out what works best for your ads, and it doesn’t stop. It’s always getting better at picking the right bids as it learns more about what makes your campaigns successful. So, it’s like having a friend who’s always improving, making sure your ads are top-notch all the time.


Automated bidding is like a growth partner. It grows with your business, no matter how big it gets. Even if you have a bunch of keywords, it can handle them all and make smart choices for each one. So, it’s like having a friend who can keep up with your business as it expands, making sure everything stays smooth and efficient.

By leveraging these benefits, advertisers can drive better results, improve efficiency, and maximize the return on their advertising spend.

A few Things You Should Take Care of

Google Ads is continuously evolving, and its automated bidding feature is no exception. Here are some of the latest updates that have been introduced:

AI-Powered Smart Bidding and Bid Optimizations

The big news here is the arrival of AI-powered Smart Bidding, which is like having a smart assistant. This feature uses machines that are super good at learning to figure out the best bids for getting more people to take action or getting more value from those actions in each auction. 

It looks at lots of things happening at the time of the auction, like what device people are using, where they are, what time it is, and more. This way, it makes sure your bids match exactly what’s going on for each search. It’s like having a tech-savvy friend who customizes your bids to fit the unique details of every search.

Changes in tROAS or tCPA Bid Strategies

There are some updates on how Google handles Target CPA (tCPA) and Target ROAS (tROAS) bid strategies. Now, these strategies are like choices you have within the Max Conversions and Max Conversion Value strategies.

This tweak lets Google Ads use advanced AI to make bids smarter, aiming to give you better results for what you want to achieve. It’s like having more options that use really smart technology to make sure your goals are met.

To make the most of your tROAS or tCPA strategy, you need to keep some best practices in mind:

  • Set realistic and achievable targets. If your targets are too high or too low, you may limit your traffic or miss out on opportunities.
  • Monitor your performance and adjust your targets as needed. You can use the Bid Strategy Report and the Performance Planner to see how your campaigns are doing and what changes you can make.
  • Account for conversion lags. If conversions take time to occur after the click, exclude the most recent data when evaluating your strategy. For example, if conversions typically take seven days, look at the data from eight days ago or earlier.

tROAS and tCPA are powerful bidding strategies that can help you achieve your goals and grow your business. By choosing the right strategy, setting the right targets, and following the best practices, you can leverage the power of Google Ads and its AI.

Grouping Similar Conversions Together

Now you can group similar conversions so you can categorize and tag. This feature lets advertisers make bidding decisions for the whole account or campaign based on the type of conversion. It’s handy for businesses that have lots of similar actions they want people to take. It’s like having a way to organize and optimize your bidding for different types of actions that are pretty alike.

These updates aim to make Google Ads Automated Bidding more powerful and efficient, helping advertisers achieve better results from their campaigns.

In conclusion, Google Ads Automated Bidding is a powerful tool that offers numerous benefits to advertisers. It improves efficiency, enhances performance, increases reach, and provides cost-effective advertising. With real-time optimization, flexibility, control, data-driven decision-making, improved targeting, continuous optimization, and scalability, it is revolutionizing the realm of online advertising.

The introduction of AI-powered Smart Bidding and Bid Optimizations, changes in tROAS or tCPA bid strategies, and the new feature of grouping similar conversions are some of the latest updates that further enhance its capabilities.

These benefits and updates have a significant impact on advertisers and their campaigns, driving better results, improving efficiency, and maximizing the return on their advertising spend. As Google Ads continues to evolve, we can expect even more advanced features and benefits in the future.




Dhruv has over 20 years of experience in technology and development, spanning various business sectors. He has worked with several Fortune 100 and Fortune 500 companies, as well as numerous startups in the technology industry. His vision for the company is to become a global lifestyle brand that influences the next generation of marketing, software development, and branding as the internet enters its third evolution cycle and impacts all aspects of life. In his free time, Dhruv enjoys immersing himself in different cultures through travel, as well as fishing, cooking, reading, playing chess, and tennis.