Every Google Ads campaign has a bid strategy sitting behind it. It decides how much you are willing to pay each time your ad competes for a spot. Pick the wrong one and you can spend a month’s budget chasing the wrong result. Pick the right one and the campaign has a fair chance of doing what you set it up to do.
Most small businesses accept whatever setting Google suggests during setup. That is not always a bad choice, but it helps to know what each option actually does. This guide walks through the main bid strategies in plain terms. It also covers the groundwork you need before handing control to an automated option.
Start with the result you want
Google’s own advice is to choose a bid strategy based on your goal. Its Google Ads bidding basics page groups the options by the result you are after: clicks, impressions, conversions or video views. That sounds obvious, yet plenty of accounts run a strategy that does not match what the owner really wants. A plumber who wants phone calls gains little from a strategy built to win as many cheap clicks as possible.
So before you touch the settings, write down one sentence about success. It might be more calls, more quote requests or more online sales. It might simply be more people seeing your brand in your local area. That sentence will point you to the right family of strategies.
Strategies built around clicks
Maximise clicks is the simplest automated option. Google sets your bids to get as many clicks as possible within your budget. You can also set a maximum cost per click for the whole campaign so no single click costs more than you are comfortable with. It suits new campaigns where you mainly want traffic and have no conversion data yet.
Manual CPC is the other click option. With it, you set your own maximum bids at the ad group or keyword level. Google describes it as a way to fine tune bids to steer the cost and volume of clicks. It gives you the most control, but it also asks the most of your time.
One thing has changed in recent years. Google retired Enhanced CPC for Search and Display campaigns from the week of 24 March 2025. Campaigns that were not moved to another strategy are now effectively running on manual CPC. If you set up an account years ago and have not looked since, it is worth checking which strategy each campaign is really using.
Clicks are only half the story, of course. A click that lands on a weak page rarely turns into an enquiry. It pays to look at conversion rate optimisation alongside your bidding, because a better landing page makes every click worth more.
Strategies built around visibility
Target impression share is for advertisers who care most about being seen. You choose where you want to appear: the absolute top of the page, the top of the page or anywhere on the page. Google then sets bids to reach that position as often as you ask. It is available on the Search network only.
This can make sense for brand searches or a very small, competitive service area. It can also get expensive quickly, because you are paying for position rather than results. Most small businesses are better served by a strategy tied to clicks or conversions.
Smart Bidding and conversion strategies
Google calls its conversion based strategies Smart Bidding. They include Maximise conversions, Maximise conversion value, Target CPA and Target ROAS. These strategies set bids for each auction using signals such as device, location, time of day, remarketing lists, language and operating system. That is far more detail than a person could adjust by hand.
Maximise conversions aims to get as many conversions as possible within your budget. You can add an optional target cost per action if you want to keep a lid on what each lead costs. Maximise conversion value works the same way but chases the total value of sales rather than the number of them. You can add an optional target return on ad spend to that one.
Target CPA and Target ROAS are the stricter versions. Target CPA tries to get as many conversions as possible at the cost per action you set. Target ROAS tries to get as much conversion value as possible at the return you set. Google notes that some conversions will cost more or less than your target, so judge results over a reasonable period rather than day by day.
Conversion tracking comes first
Smart Bidding only works if Google knows what counts as a result. Google’s help pages state plainly that you need conversion tracking enabled to use it. Without tracking, a conversion strategy has nothing to learn from. For the value based options, Google also asks that you have enough conversions with values recorded before you switch.
Tracking matters beyond Google Ads too. The same enquiry data helps you judge how your other channels perform. Businesses that already run inbound marketing will recognise the idea of measuring leads rather than raw traffic.
A sensible path for a small account
There is no single correct strategy, but many small accounts follow a similar pattern. Your starting point depends mostly on how much tracking data you already have. Here is a practical way to think about it:
- A brand new campaign with no tracking can start on Maximise clicks with a sensible maximum cost per click.
- Once conversion tracking is set up and recording real enquiries, Maximise conversions becomes a fair option.
- After the campaign builds a steady history of conversions, you can try adding a target cost per action.
- Online stores that record sale values can look at Maximise conversion value and later Target ROAS.
Whichever strategy you choose, give it time. Google says automated strategies learn as they go, using past bid performance to inform future bids. Changing the strategy or targets every few days resets that learning and makes results harder to read. Make one change, then watch it for a while.
Budgets and bid strategies work together
Your daily budget and your bid strategy are linked. If a campaign shows as “Limited by budget”, Google suggests keeping the daily budget comfortably above your average daily spend. A tight budget can stop an automated strategy from bidding where it would otherwise find good results. If money is limited, it is often better to narrow your keywords or locations than to starve a broad campaign.
Google also offers portfolio bid strategies. These group several campaigns under one shared target, such as one Target CPA across a few campaigns. They can help larger accounts, but a small business with one or two campaigns rarely needs them. Keep things simple until the account is big enough to justify the extra layer.
Paid search also sits alongside your other channels. Many businesses also keep in touch with past customers through email marketing, which needs no bid at all. Ads work best as one part of a wider plan rather than the whole plan.
Frequently asked questions
Which Google Ads bid strategy is best for a new business?
Many new advertisers start with Maximise clicks because it needs no conversion history. Set a maximum cost per click so spend stays under control. Move to a conversion strategy once tracking is in place and recording real results.
Do I need conversion tracking for Smart Bidding?
Yes. Google states that conversion tracking must be enabled to use Smart Bidding. Without it, the system has no results to learn from or aim for.
What happened to Enhanced CPC?
Google deprecated Enhanced CPC for Search and Display campaigns from the week of 24 March 2025. Campaigns left on it are effectively running on manual CPC. Check each campaign and choose a current strategy on purpose.
Should I manage bidding myself or get help?
Plenty of owners run a small account well once they understand the options. Others prefer to hand it over and focus on running the business. If you are weighing that up, it helps to understand which digital marketing services you might need before you decide.