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 new lead generation campaigns on Maximize conversions while conversion data builds.
- Move to Target CPA once a campaign has a steady record of conversions and a cost per lead you are 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 records 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 counts qualified leads before relying on 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, aiming for 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 achieved over the last few weeks. A target set far below recent results often makes the campaign show for far fewer searches. Adjust in moderate steps and give each change a week or two to settle.
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 searches and audiences more likely to produce valuable leads. It works best with enhanced conversions for leads or offline imports feeding real outcomes back. Our guide to enhanced conversions for leads covers the setup.
Data Thresholds
Google does not require a fixed minimum for most strategies, but bidding becomes more reliable as conversions grow. Campaigns with only a handful of conversions a month often perform 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 change at a quiet time and allow a learning period of one to two weeks before judging. Avoid changing strategy, budget and targets at the same time.
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 likely too low for the auctions available. Raise it toward 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.
Sources
- Google Ads Help, about Smart Bidding support.google.com