Changes to How Smart Bidding Strategies Are Organized for Search Campaigns

Everything You Need to Know in Less Than 50 words

Google is slightly changing the categories for bid strategies for Search campaigns. Google assures users that they can still use the same bid strategies. The strategies are just now bundled into two performance goals. These changes will not impact bidding behavior. You don’t need to do anything to your current or future Search campaigns for this update, as everything will change automatically. 

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With this new change, Google Ads has two performance goals: maximize conversions and maximize conversion value. Therefore, the bid strategies will change to reflect these performance goals, offering two bid strategies. 

Maximize Conversions Within a Set Budget

If this is your goal, the former bid strategy would be to maximize conversions. The updated bid strategy is the same, but now, you can also add an optional target CPA. 

Maximize Conversions to a Target CPA

If your goal is targeting CPA to maximize conversions, your bid strategy will change from target CPA to maximize conversions. In this case, you will add the optional target CPA to the bid strategy. 

Maximize Conversion Value Within a Set Budget

You will still use the maximize conversion bid strategy to maximize your conversion value within a budget. You can also add an optional target ROAS. 

Maximize Conversion Value to a Target ROAS

For this performance goal, you will use the maximize conversion value bid strategy and the optional target ROAS. 

Timeline of Changes

These updated strategies will begin in July 2022. Search campaigns started around July 2021 or earlier will automatically switch to the new strategy. Campaigns that started between July 2021 and July 2022 will already have these changes. 

The exceptions are any Search campaigns using a portfolio strategy. Expect these campaigns to be switched in 2023. 

Navigating the New Bid Strategy Options

Instead of choosing to maximize conversions, maximize conversion value, target ROAS, or target CPA, the latter two will be optional add-ons to the bid strategy. 

When you select maximize conversions, you can add a target CPA. Google Ads will automatically set bids to increase conversion and target the chosen CPA. A maximized conversion strategy with the target CPA option selected will function the same as the target CPA bid strategy did before. 

When you select maximize conversion values, you can add target ROAS. Google Ads will set bids to maximize your conversion value and achieve the ROAS you requested. The target ROAS is the average conversion value you want for each dollar spent on ads.

Final Note

These updates change very little and simply reorganize the bid strategy options. The performance of Search campaigns will not be affected.

Source: Google