💡 Summary Your bidding strategy determines how Google spends your budget — and choosing the wrong one can mean overpaying for clicks that don’t convert. In this guide, I’ll break down every Google Ads bidding strategy available, explain when each one works best, and give you a simple framework to pick the right one for your campaign goals.
Here’s something most beginners don’t realise: two advertisers can target the exact same keyword, with the same budget, and get completely different results — simply because they chose different bidding strategies.
Your Google Ads bidding strategy is one of the most important settings in your entire campaign. It tells Google how to spend your money, what to optimise for, and how aggressively to compete in the auction.
Get it right and Google works with you to hit your goals. Get it wrong and you’ll either overspend on low-quality clicks or underspend so much your ads barely show.
This guide covers every bidding strategy available in Google Ads today — what each one does, when to use it, and when to avoid it. Let’s break it down. 👇
How Google Ads Bidding Works (Quick Overview)
Every time someone searches on Google, an auction happens in milliseconds. Google looks at all the advertisers targeting that search query and decides which ads to show — and in what order.
Your bid is one factor in that decision. But it’s not just the highest bidder who wins. Google also considers your Quality Score — a measure of how relevant your ad and landing page are to the searcher. This is why a well-optimised campaign can outrank a competitor who’s bidding more.
Your bidding strategy tells Google what you want to optimise for in that auction:
- Do you want to maximise the number of clicks?
- Do you want to hit a specific cost per conversion?
- Do you want to maximise the value of each conversion?
- Or do you want manual control over every bid?
Different campaign goals need different bidding strategies. Let’s go through each one.
Manual CPC — Full Control, Full Responsibility
What It Is
Manual CPC (Cost Per Click) is the most hands-on bidding strategy. You set the maximum amount you’re willing to pay for a click on each keyword — and Google won’t exceed that amount.
You can also enable Enhanced CPC (eCPC), which allows Google to adjust your manual bids up or down by up to 30% when it predicts a conversion is more or less likely.
When to Use Manual CPC
- You’re brand new to Google Ads and want to understand how the auction works before handing control to automation
- You have a very small budget and need to control exactly what you pay per click
- Your campaign has limited conversion data (fewer than 30–50 conversions per month) — Smart Bidding needs data to work effectively
- You’re running a simple campaign with a small keyword list and have time to monitor and adjust bids regularly
When to Avoid Manual CPC
- When you’re managing a large campaign with dozens of keywords — manually adjusting bids becomes a full-time job
- When you have enough conversion data to use Smart Bidding — automation will almost always outperform manual bidding at scale
- When you don’t have time to review and adjust bids weekly
What to Watch
With Manual CPC, you need to check your campaigns regularly. If your bids are too low, your ads won’t show. Too high, and you’ll exhaust your budget on a handful of clicks. Set bid adjustments for devices, locations, and time of day to get the most out of manual bidding.
Maximise Clicks — Spend Your Budget, Get Traffic Fast
What It Is
Maximise Clicks is an automated strategy where Google tries to get you as many clicks as possible within your daily budget. You set the budget; Google handles the rest.
You can optionally set a maximum CPC bid limit to prevent Google from overpaying for individual clicks.
When to Use Maximise Clicks
- You want to drive traffic to a new website and gather data quickly
- You’re running a brand awareness campaign where volume of visits matters more than conversion efficiency
- You’re in the early stages of a campaign and need search term data before switching to a conversion-focused strategy
- Your campaign has no conversion tracking set up yet
When to Avoid Maximise Clicks
- When your goal is leads or sales — Maximise Clicks optimises purely for traffic volume, not quality
- When you have conversion tracking in place and enough data for Smart Bidding
- When your landing page isn’t ready — driving lots of clicks to a poor landing page wastes budget fast
Important: Always set a maximum CPC limit when using Maximise Clicks, otherwise Google can spend your entire daily budget on a small number of expensive clicks.
Target CPA (Cost Per Acquisition) — The Conversion Machine
What It Is
Target CPA is a Smart Bidding strategy where you tell Google what you want to pay for each conversion — and Google automatically adjusts your bids in real time to hit that target.
If you want to pay no more than £20 per lead, you set a £20 target CPA and Google optimises every auction with that goal in mind.
When to Use Target CPA
- You have conversion tracking properly set up (this is non-negotiable for Smart Bidding)
- Your campaign has generated at least 30–50 conversions in the last 30 days — Google needs this data to optimise effectively
- Your primary goal is lead generation or sales at a consistent cost
- You want to remove manual bid management and let Google’s machine learning work
When to Avoid Target CPA
- When you have fewer than 30 conversions per month — the algorithm won’t have enough data and performance will be unpredictable
- When your conversion tracking isn’t accurate — garbage in, garbage out. If Google is optimising towards the wrong actions, your results will suffer
- In the first few weeks of a new campaign — give it time to collect data first with Manual CPC or Maximise Conversions
Setting Your Target CPA
Don’t just guess a number. Calculate your target CPA based on your actual business economics:
- What is your average order value or customer lifetime value?
- What profit margin can you afford to spend on acquisition?
- What’s your current conversion rate?
For example: if your service is worth £500 and you’re happy to spend 20% on acquisition, your target CPA is £100.
Start with a target that’s close to your historical CPA and adjust gradually — don’t set an aggressive target right away or Google will struggle to spend your budget.
Target ROAS (Return on Ad Spend) — For eCommerce and High-Value Sales
What It Is
Target ROAS tells Google to optimise your bids to achieve a specific return on ad spend. Instead of targeting a cost per conversion, you’re targeting a revenue multiple.
If you set a 400% target ROAS, you’re telling Google: “For every £1 I spend on ads, I want £4 back in revenue.”
When to Use Target ROAS
- You run an eCommerce store where transactions have varying values and you want to maximise total revenue, not just conversion volume
- You have conversion value tracking set up (not just conversion tracking — you need to be passing revenue values back to Google)
- Your campaign generates at least 50 conversions per month with consistent revenue data
- You want Google to prioritise high-value conversions over low-value ones
When to Avoid Target ROAS
- For lead generation campaigns where conversions don’t have a direct monetary value
- When your conversion values are all the same — Target CPA will do the same job more simply
- When you have fewer than 50 monthly conversions — the algorithm needs significant data to work well
Setting Your Target ROAS
Calculate your minimum acceptable ROAS first:
- If your product costs £50 and you sell it for £150, your gross margin is £100
- If you’re willing to spend £30 of that on ads, your minimum ROAS is 150/30 = 5x (500%)
Start with a ROAS target that reflects your historical performance, not your ideal. You can increase the target gradually as performance improves.
Maximise Conversions — Let Google Spend Your Budget on Results
What It Is
Maximise Conversions tells Google to get you as many conversions as possible within your daily budget — without a specific cost-per-conversion target. Google has full control over bid amounts.
When to Use Maximise Conversions
- You have conversion tracking set up and want to move away from manual bidding
- You want to use your full budget and prioritise conversion volume
- You’re transitioning from Manual CPC and want to test Smart Bidding with less constraint than Target CPA
- Your campaign is in a growth phase where volume matters more than efficiency
When to Avoid Maximise Conversions
- When you have a strict cost-per-acquisition target — Maximise Conversions doesn’t cap what Google pays per conversion
- When your budget is very limited — without guardrails, Google can spend your entire budget on a small number of expensive conversions
Pro tip: Maximise Conversions is a great stepping stone. Start here to let Google’s algorithm learn, then switch to Target CPA once you have 30+ conversions and can see what your natural CPA looks like.
Maximise Conversion Value — Prioritise Quality Over Quantity
What It Is
Similar to Maximise Conversions, but instead of optimising for the number of conversions, Google optimises for the total value of conversions within your budget.
This means Google will prioritise auctions where it predicts a higher-value conversion is likely, even if that means fewer total conversions.
When to Use Maximise Conversion Value
- You’re running an eCommerce campaign and want to prioritise high-value orders over low-value ones
- You have conversion value tracking set up with different values assigned to different actions
- You’re in a growth phase and want revenue maximisation without a specific ROAS constraint
When to Avoid It
- When all your conversions have the same value — use Maximise Conversions instead
- When you need to hit a specific ROAS target — use Target ROAS instead
Target Impression Share — For Brand Visibility and Dominance
What It Is
Target Impression Share lets you tell Google how often you want your ad to appear — and where. You set a target percentage of auctions where your ad should show, and choose a placement goal:
- Anywhere on the page
- Top of the page
- Absolute top of the page (position 1)
When to Use Target Impression Share
- You’re running a branded campaign and want to make sure your ad always appears when someone searches for your brand name
- You’re in a competitive market and need to maintain visibility against specific competitors
- You’re running a local awareness campaign where visibility in your area matters
When to Avoid Target Impression Share
- For most direct response campaigns — optimising for visibility rather than conversions will increase costs without necessarily improving results
- When budget is limited — chasing impression share can be expensive, especially for competitive “absolute top” placements
Which Google Ads Bidding Strategy Should You Use? A Simple Framework
Here’s how to decide based on where you are right now:
🟡 New Campaign — No Conversion Data Yet
Use: Manual CPC or Maximise Clicks Why: You need data before automation can work. Run for 2–4 weeks, get 30–50 conversions, then switch.
🟠 Campaign with Some Data — 20–50 Conversions/Month
Use: Maximise Conversions Why: Google has enough signal to start optimising automatically. Let it learn without a hard CPA constraint.
🟢 Established Campaign — 50+ Conversions/Month
Use: Target CPA (lead gen) or Target ROAS (eCommerce) Why: You have the data for Smart Bidding to work at its best. Set a realistic target and let it optimise.
🔵 Brand / Visibility Campaign
Use: Target Impression Share Why: When the goal is presence, not conversions, this gives you direct control over visibility.
Bidding Strategy Quick Reference Table
| Strategy | Best For | Conversion Data Needed | Controls |
|---|---|---|---|
| Manual CPC | Beginners, small budgets | None | You set bids manually |
| Maximise Clicks | Traffic, early data collection | None | Set budget + optional max CPC |
| Maximise Conversions | Scaling conversions | 20–30/month | Set daily budget |
| Target CPA | Lead gen, consistent cost/lead | 30–50/month | Set target cost per conversion |
| Maximise Conv. Value | eCommerce revenue growth | 30–50/month | Set daily budget |
| Target ROAS | eCommerce, high-value sales | 50+/month | Set target revenue multiple |
| Target Impression Share | Brand visibility | None | Set impression % and placement |
Common Bidding Strategy Mistakes to Avoid ❌
1. Jumping straight to Target CPA without enough data Smart Bidding needs at least 30–50 conversions per month to work properly. Start with Maximise Conversions to build that data first.
2. Setting an unrealistic Target CPA If your historical CPA is £80 but you set a target of £20, Google will either barely spend your budget or serve your ads in low-competition auctions that don’t convert. Start close to your actual CPA and improve from there.
3. Changing your strategy too often Every time you make a significant change to your bidding strategy, Google enters a learning phase — typically 1–2 weeks. Changing strategy every few days resets this constantly and you’ll never get stable data.
4. Using Maximise Clicks as a long-term strategy It’s a great starting point, but don’t stay here. Once you have conversion data, move to a conversion-focused strategy.
5. Ignoring the learning period After switching strategies, expect 1–2 weeks of inconsistent performance. Don’t panic and switch back — let the algorithm learn.
Final Thoughts
Choosing the right Google Ads bidding strategy isn’t about finding the “best” option — it’s about matching the strategy to where your campaign is right now.
Start with manual control or traffic-focused bidding to collect data. Transition to Smart Bidding once you have conversions. Then refine with Target CPA or Target ROAS once you know your numbers.
The biggest mistake you can make is either handing control to automation before you have data — or refusing to use automation even when you do.
Ready to set up your campaigns the right way? Check out our guide on How to Find Keywords for Google Ads to make sure the foundation of your campaign is solid before your bidding strategy ever comes into play. 🎯
