Smart Bidding for Lead Generation
Which Google Ads bid strategy suits a lead generation account at each stage, and how to change strategies safely.
Key Takeaways
- Smart Bidding sets bids for each auction using signals Google sees at the time, aiming for the goal you choose.
- Start a new lead generation campaign on Maximize conversions while conversion data builds up.
- Move to Target CPA once a campaign has a steady record of conversions and a cost per lead you're happy with.
- If different leads are worth very different amounts, assign values and use value-based bidding.
On This Page
For lead generation, start a campaign on Maximize conversions, switch to Target CPA once it's recording conversions steadily at a cost you can sustain and move to value-based bidding when you can assign different values to different lead types. Whichever you use, Smart Bidding is only as good as the conversions it learns from, so make sure it's counting qualified leads before you lean on the automation.
How Smart Bidding Works
Smart Bidding sets a bid for each auction using signals such as device, location, time, the search itself and audience data, all aimed at the goal you set. It needs conversion data to learn which auctions are likely to produce results.
The Main Strategies
| Strategy | What it does | Best when |
|---|---|---|
| Maximize conversions | Gets as many conversions as possible within the budget | New campaigns building conversion data |
| Maximize conversions with a target CPA | Aims for an average cost per conversion you set | Campaigns with steady conversions and a known affordable cost per lead |
| Maximize conversion value | Gets as much total conversion value as possible | Leads have different values assigned |
| Maximize conversion value with a target ROAS | Aims for a return on ad spend you set | Values are reliable and volume is steady |
| Manual CPC | You set bids by hand | Very low volume or tightly controlled tests |
Setting a Realistic Target CPA
Base the target on the cost per lead the campaign has actually achieved over the last few weeks. Set it far below recent results and the campaign will often show for far fewer searches. Adjust in moderate steps. A new target doesn't put the campaign back into learning, but judge each change over 1 to 2 conversion cycles before you make the next one.
Work backward from what a customer is worth to the most you should pay for a lead.
Set a bidding target slightly above the result at first so the campaign has room to learn, then tighten it as the data comes in.
Value-Based Bidding With Lead Values
A remodeler whose kitchen jobs are worth ten times a small repair can assign higher values to kitchen leads, or import job values from the CRM. Value-based bidding then favors the searches and audiences most likely to produce valuable leads. It works best when enhanced conversions for leads or offline imports are feeding real outcomes back. Our guide to enhanced conversions for leads covers the setup.
Data Thresholds
Google doesn't require a fixed minimum for most strategies, but bidding gets more reliable as conversions grow. A campaign with only a handful of conversions a month often does better with a broader goal, a combined campaign or Maximize conversions without a target until volume builds.
Changing Strategies Safely
Use a campaign experiment to test a new strategy against the current one, or make the change at a quiet time. Google's help page on Smart Bidding learning says a new or reactivated strategy, campaigns, ad groups or keywords added to or removed from a strategy and significant changes to conversion goals put a campaign into a Learning status, which never lasts more than 7 days. Budget changes, target changes and edits to your ads don't trigger it, and ads keep serving while it shows.
Give results 1 to 2 conversion cycles before you judge a change, which is roughly the time it takes a typical customer to go from click to lead. Avoid changing the strategy and the conversion goals at the same time, or you won't know which change moved the numbers.
Frequently Asked Questions
Should a new campaign use Target CPA?
Usually not. Start with Maximize conversions until you have a reliable cost per lead to base a target on.
Why did my campaign stop spending after I set a Target CPA?
The target was probably too low for the auctions available. Raise it toward your recent results.
Is Manual CPC still useful?
For very small or tightly controlled campaigns, yes. Most accounts with reliable tracking do better with Smart Bidding.
How long does the Smart Bidding learning period last?
Google says the Learning status never lasts more than 7 days, and your ads keep serving while it shows. Budget changes, target changes and new ad copy don't trigger it, though results can take 1 to 2 conversion cycles to settle.
Sources
- Google Ads Help, about Smart Bidding support.google.com
- About Smart Bidding learning, Google Ads Help support.google.com
Match Your Bidding to Your Data
Request a free proposal and we'll review your strategy with you.