Smart bidding is the umbrella term for automated bid strategies in which the system sets the bid amount for each auction individually, based on the probability of conversion. This includes strategies aimed at a target cost per acquisition, a target return on ad spend, or maximising conversions within a budget. They work well, but come with three conditions. The first is a sufficient volume of conversion data – with only a few conversions a month, the system has nothing to learn from. The second is accurate and reliable measurement, since the strategy optimises precisely for whatever you feed it, including low-quality leads. The third is patience: deployment is followed by a learning phase, during which performance fluctuates, and frequent interventions prolong it. So change targets gradually, not in large jumps.
See also: Offline conversion import, Impression share, Budget pacing.
