Bidding & Smart Bidding
We've all been there—swearing off certain PPC strategies only to discover they work brilliantly when applied correctly. As practitioners in the r/PPC community often discuss, one of the most polarizing topics revolves around bidding strategies, particularly the use of automated versus manual approaches in different campaign types. After managing over $350M in Google Ads spend, I've learned that the strategies we initially resist often become our most powerful tools once we understand their proper application and timing.
The Great Bidding Strategy Reversal
Early in my career, I was a manual bidding purist. The idea of letting Google's algorithms control my bids felt like surrendering control to a black box. But here's what changed my perspective: data from hundreds of campaigns showed that my resistance was costing clients real money.
The turning point came during a $2.3M annual spend account where manual bidding was delivering a 3.2 ROAS. After reluctantly testing Target ROAS on 30% of the budget, that segment achieved 4.1 ROAS within six weeks. The algorithm had access to conversion data across millions of auctions that I simply couldn't process manually.
Key Insight: Your resistance to certain strategies often stems from bad timing or improper implementation, not inherent flaws in the approach itself.
The Max Clicks Controversy in Demand Gen
A common question in the r/PPC community centers on bidding strategy selection for Demand Generation campaigns. The consensus among experienced practitioners is clear: avoid Max Clicks for demand gen at all costs.
Here's why this matters: Demand Gen campaigns target users in the awareness and consideration phases. Max Clicks optimizes purely for volume, not quality. In my experience, accounts using Max Clicks for Demand Gen see:
- 45-60% higher CPCs compared to Target CPA
- 70% lower conversion rates
- Significantly higher bounce rates (often >80%)
- Poor audience quality that contaminates remarketing pools
Common Mistake: Using Max Clicks for Demand Gen because it seems like the "safe" option when you lack conversion data. This approach burns budget on low-intent traffic and creates poor user experiences.
When to Embrace Advanced Bidding Strategies
The key to successful automated bidding isn't avoiding it—it's knowing when and how to implement it properly. Here are the specific conditions that determine success:
Volume Requirements for Smart Bidding
Before switching to any Target CPA or Target ROAS strategy, ensure you meet these minimums:
| Campaign Type |
Minimum Conversions (30 days) |
Recommended Conversions |
| Search Campaigns |
30 |
50+ |
| Shopping Campaigns |
20 |
40+ |
| Display/Demand Gen |
50 |
100+ |
| Video Campaigns |
15 |
30+ |
The Learning Period Reality
Every automated bidding strategy requires a learning period, but most advertisers don't give it enough time. Based on my campaign data:
- Week 1-2: Performance typically 15-25% below manual baseline
- Week 3-4: Performance reaches manual baseline
- Week 5-8: Performance exceeds manual by 10-30%
- Week 9+: Optimized performance with ongoing improvements
Best Practice: Budget 20-30% extra spend during the first month of automated bidding implementation to account for the learning period and allow for proper optimization.
Portfolio Bidding: The Strategy I Resisted Most
Portfolio bidding strategies were my biggest mental block. The concept of grouping multiple campaigns under one bidding strategy felt like it would dilute performance across different audience segments and campaign types.
I was completely wrong. Portfolio bidding has become one of my most powerful tools, particularly for:
Cross-Campaign Budget Optimization
When I group related campaigns (same product line, similar customer journey stage) into portfolio strategies, Google can shift budget toward the best-performing opportunities in real-time. A recent example:
- 5 Search campaigns for B2B software client
- Individual Target CPA strategies: 2.8 ROAS average
- Portfolio Target CPA strategy: 3.6 ROAS average
- 28% improvement from better cross-campaign optimization
When NOT to Use Portfolio Strategies
Portfolio bidding isn't universal. Avoid it when:
- Campaigns have dramatically different customer lifetime values
- Seasonal patterns vary significantly between campaigns
- You need granular control over individual campaign budgets
- Campaigns target completely different audiences with different intent levels
Key Insight: Portfolio strategies work best when campaigns share similar conversion values and customer intent levels. They fail when you force disparate campaign types together.
The Enhanced CPC Middle Ground
Enhanced CPC (eCPC) often gets dismissed as outdated, but it remains valuable in specific scenarios. I've found it particularly effective for:
New Account Launches
When launching accounts with limited historical data, eCPC provides a bridge between manual control and full automation:
- Start with manual CPC for 2-3 weeks to establish baseline
- Switch to eCPC once you have 15+ conversions
- Transition to Target CPA after reaching 30+ conversions
- Consider Target ROAS once you have 50+ conversions
High-Value, Low-Volume Campaigns
For campaigns with conversion values >$1,000 but <30 monthly conversions, eCPC provides automated optimization without the volatility of full Smart Bidding.
Best Practice: Use eCPC as a stepping stone, not a permanent solution. Set calendar reminders to evaluate advancement to full Smart Bidding as conversion volume grows.
Maximize Conversions: The Misunderstood Strategy
Maximize Conversions gets a bad reputation for budget burning, but it's incredibly effective when implemented correctly. The key is proper budget control and clear expectations.
Ideal Use Cases for Maximize Conversions
This strategy excels in situations where:
- All conversions have similar values
- You want to maximize lead volume within a set budget
- Conversion tracking is reliable and comprehensive
- You have sufficient budget to handle CPC fluctuations
Budget Management with Maximize Conversions
The most common failure point is inadequate budget management. Here's my approach:
- Set daily budgets 20-30% higher than your true comfort level
- Use monthly spending limits at the account level
- Monitor spend daily for the first two weeks
- Expect 15-25% budget fluctuation during optimization
Common Mistake: Setting exact daily budgets with Maximize Conversions and expecting consistent spend. This strategy requires budget flexibility to perform optimally.
The Testing Framework That Changed Everything
Instead of avoiding strategies based on past failures, I developed a systematic testing framework that removes emotion from the decision-making process:
The 30-20-50 Testing Rule
- 30% of budget stays with proven strategies
- 20% tests incremental improvements to current strategies
- 50% tests completely new approaches
This allocation ensures stability while forcing continuous experimentation with previously dismissed tactics.
Testing Documentation Process
For every strategy test, I document:
- Pre-test performance baseline (minimum 30 days)
- Specific hypothesis and success metrics
- Implementation timeline and learning period expectations
- Weekly performance checkpoints
- Post-test analysis and scaling decisions
This systematic approach revealed that 60% of my "never again" strategies actually worked well under the right conditions.
What to Do Next: Your Action Plan
Ready to challenge your own PPC strategy assumptions? Here's your step-by-step implementation plan:
- Audit Your Current Bidding Mix: List all campaigns and their current bidding strategies. Identify any using Max Clicks for demand gen or awareness campaigns—these need immediate attention.
- Identify Testing Candidates: Look for campaigns with 30+ monthly conversions still using manual bidding. These are prime candidates for Smart Bidding tests.
- Set Up Portfolio Strategy Tests: Group 3-5 related campaigns into a portfolio Target CPA test. Start with campaigns that have similar conversion values and audience intent.
- Implement the 30-20-50 Budget Rule: Allocate your testing budget using this framework. Begin with one "never again" strategy that has the highest potential impact.
- Create Performance Monitoring Systems: Set up weekly reporting for all strategy tests. Include conversion volume, CPC trends, ROAS/CPA performance, and quality metrics like bounce rate.
The strategies you've sworn off might be exactly what your accounts need to break through current performance plateaus. The key is approaching them with better data, clearer conditions, and systematic testing rather than hoping for different results from the same old approaches.
Related Reading
AI Disclosure: This article was generated with AI assistance based on a community discussion on
Reddit r/PPC. Expert analysis and practitioner perspective by John Williams, Senior Paid Media Specialist with $350M+ in managed Google Ads spend. AI was used to draft and structure the content; all strategic recommendations reflect real campaign experience.