How Google Ads calculates bids

Smart Bidding uses Google’s machine learning technology to optimize for conversions across every ad auction.

Why: This allows you to set millions of unique bids every second across campaigns.

When calculating bids for Maximize conversions or Target CPA, your bid strategy will take into account your specified budget or target CPA, contextual signals at auction-time, and search query-level performance across your account.

Why: This helps your bid strategies predict the auction-time conversion rate before setting a bid.

When calculating bids for Maximize conversion value or Target ROAS, your bid strategy will take into account your specified budget or target ROAS, contextual signals at auction-time, and search query-level performance across your account.

Why: This helps your bid strategies predict the auction-time conversion value per click before setting a bid.

The same bid is applied across all keywords when using the Maximize clicks bid strategy.

Why: Bids are adjusted up or down to ensure you hit your campaign budgets while getting as many clicks as possible.

Bids are set to help achieve your Impression Share goal when using the Target impression share bid strategy.

Why: This will help you show your ad in the Google search results in the optimal location based on your goals.

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