Smart Bidding
Smart Bidding is Google Ads' auction-time automated bidding (tCPA, tROAS, Maximize conversions, Maximize conversion value), setting each bid from the conversion data you feed it.
Instead of you setting keyword bids, the system sets a bid for each individual auction using machine learning over your conversion feed and contextual signals.
| Strategy | Optimizes toward | Needs per-conversion values? |
|---|---|---|
| Target CPA (tCPA) | An average cost per conversion | No |
| Target ROAS (tROAS) | An average return on ad spend | Yes |
| Maximize conversions | Conversion volume within budget | No |
| Maximize conversion value | Total conversion value within budget | Yes |
#It optimizes toward whatever arrives
Smart Bidding doesn't know what your conversions should be; it optimizes toward the feed you supply: counts, values, arrival lag, dedup state, and consent-modeled estimates filling observed gaps. The value-optimizing strategies additionally depend on real per-conversion values arriving. A misbehaving strategy is diagnosed at its inputs first.
In practice: Buron runs scheduled checks on these inputs (conversions still flowing, conversion actions carrying values, Smart Bidding readiness), because that's where "Smart Bidding isn't working" almost always lives.
What the algorithm actually runs on, input by input: Smart Bidding is a signals problem. The values contract behind tROAS: Value-based bidding.
Related terms
Signal quality
Signal quality is the fitness of your conversion data as an input to automated bidding: complete, deduplicated, on time, and carrying real values.
Value-based bidding
Value-based bidding is automated bidding that optimizes toward conversion value instead of conversion count: tROAS and Maximize conversion value on Google Ads.