Google Ads Bidding Strategy Deep-Dive: Master Every Bid Strategy for Maximum ROAS

What Bidding Strategy Actually Does

At its core, bidding strategy tells Google: "This is what I want you to optimize for." Everything else—keywords, ads, targeting, budget—is secondary to this fundamental instruction.

How Google Uses Your Bidding Strategy

When You Select "Maximize Conversion Value":

• Google analyzes which users are most likely to make high-value purchases
• Determines optimal times to show ads to these users
• Calculates how many impressions each user needs before converting
• Adjusts bids in real-time based on conversion probability and value
• Learns and refines targeting based on what actually drives value

When You Select "Maximize Clicks":

• Google finds users most likely to click (regardless of conversion potential)
• Optimizes for maximum click volume
• Ignores whether those users actually buy or become leads
• Result: Wasted budget on "clicky" but non-converting traffic

The difference is night and day.

The AI Optimization Era

Era	How It Worked
2009-2019	Advertisers manually managed bids, placements, targeting. Google executed instructions.
2020+	Google's AI handles optimization. Advertisers provide strategy and inputs.

Core Truth: In the AI-driven era, your bidding strategy is your primary control lever. Everything else are inputs Google considers.

Manual Bidding Strategies

Strategy	What It Does	When to Use
Manual CPC	You set exact bid for each keyword	Learning phase, full control needed
Enhanced CPC	Manual with AI adjustments up/down	Transitioning from manual to smart

Automated Volume Strategies

Strategy	What It Does	When to Use
Maximize Clicks	Gets most clicks within budget	Building traffic data (short-term only)
Maximize Conversions	Gets most conversions within budget	After 15+ conversions, growing volume
Maximize Conversion Value	Gets highest total value within budget	When value tracking is accurate

Target-Based Strategies

Strategy	What It Does	When to Use
Target CPA	Hits specific cost per acquisition	After 30+ conversions, cost control needed
Target ROAS	Hits specific return on ad spend	E-commerce, value varies by product
Target Impression Share	Shows ads X% of time	Brand campaigns, competitive defense

The Critical Difference

Strategy	Optimization Goal	Best For
Maximize Conversions	Most conversions (regardless of value)	All conversions worth the same
Maximize Conversion Value	Highest total revenue/value	Conversions have different values

Why Value Wins for Most Businesses

E-Commerce Example:

• Maximize Conversions: Gets 100 orders averaging $25 = $2,500 revenue
• Maximize Conversion Value: Gets 60 orders averaging $75 = $4,500 revenue

Fewer conversions but 80% more revenue.

Lead Gen Example:

• Maximize Conversions: 50 leads, 10% close rate = 5 customers
• Maximize Conversion Value (with lead scoring): 30 leads, 25% close rate = 7.5 customers

Fewer leads but 50% more customers.

When to Use Each

Use Maximize Conversions When	Use Maximize Value When
All conversions have same value	Products/services have different prices
Volume is the primary goal	Revenue/profit is the primary goal
Value tracking isn't set up	Transaction values pass to Google Ads

How to Set Initial Targets

1. Run Maximize Conversions/Value for 2-4 weeks
2. Calculate actual CPA or ROAS achieved
3. Set target 10-20% looser than actual (e.g., if CPA was $50, set target at $55-60)

Target CPA Setting Framework

Actual CPA	Initial Target	Why
$50	$55-60	Gives algorithm room to optimize
$100	$110-120	Prevents over-restriction

Target ROAS Setting Framework

Actual ROAS	Initial Target	Why
400%	350-380%	Allows volume growth
600%	500-550%	Balance efficiency and scale

Scaling Targets Over Time

• Tighten targets gradually: 5-10% improvement at a time
• Wait 2-3 weeks between target changes
• Monitor volume: If conversions drop significantly, target is too aggressive
• Seasonal adjustment: Loosen during slow periods, tighten during peaks

What Is Customer Acquisition Bidding?

Google's new customer acquisition settings allow you to bid differently for new customers vs. returning customers—critical for growth-focused businesses.

Acquisition Modes

Mode	How It Works	Best For
Bid Higher for New	Adds value premium for new customers	Growth focus, value new customers more
New Customers Only	Only bids on acquisition	Pure acquisition campaigns
Off	Treats all customers equally	Retention focus, repeat purchases valued

Setting Up Customer Acquisition Bidding

1. Navigate to campaign settings
2. Find "Customer Acquisition" section
3. Enable acquisition goal
4. Set new customer value premium (e.g., +$50)
5. Upload customer lists for exclusion

Calculating New Customer Value

Formula: Customer Lifetime Value - First Purchase Value = New Customer Premium

• If LTV is $500 and first purchase averages $100, new customer premium = $400
• If willing to invest 50% of LTV for acquisition, set premium at $200

Mistake 1: Wrong Strategy for Stage

Stage	Wrong Choice	Right Choice
New campaign, no data	Target ROAS	Manual CPC or Maximize Clicks
15-30 conversions/month	Maximize Clicks	Maximize Conversions
100+ conversions/month	Maximize Conversions	Target CPA/ROAS

Mistake 2: Targets Too Aggressive

Setting target CPA 50% below actual CPA kills volume. Algorithm can't find traffic that meets impossible targets.

Fix: Start 10-20% looser than actual performance, tighten gradually.

Mistake 3: Changing Strategies Too Frequently

Every strategy change resets learning. Constant changes prevent optimization.

Fix: Wait 2-4 weeks minimum between strategy changes. Allow learning period.

Mistake 4: Using Maximize Clicks Long-Term

Maximize Clicks finds clicky people, not buyers. Extended use wastes budget.

Fix: Use only for initial data gathering (1-2 weeks max), then switch to conversion-based strategy.

Mistake 5: Ignoring Conversion Tracking Issues

Smart bidding is only as good as your data. Bad tracking = bad optimization.

Fix: Verify conversions match actual sales/leads before trusting automation.