In the world of PPC advertising, choosing the right bidding strategy can be the difference between success and wasted ad spend.

With so many options and conflicting advice, it can be difficult for advertisers to know which path to take. Recent analysis from Optmyzr, an online ad software company, has highlighted the importance of selecting the correct strategy and the potential pitfalls of mismanaging these choices.

The Underdogs: Max Conversion Value and Max Clicks

One of the key takeaways from Optmyzr’s deep dive into PPC bidding strategies is that Max Conversion Value consistently delivers a better Return on Ad Spend (ROAS) and Cost per Acquisition (CPA) than other strategies.

This approach focuses on maximising the value of each conversion, making it particularly effective for businesses that want to extract the highest possible return from their ad spend.

However, one surprising finding was that Max Clicks, often an underutilised strategy, also offers strong performance for traffic-based campaigns. Advertisers seeking to drive more visitors to their website should not ignore this option, as it can be effective, especially when paired with intelligent bid adjustments.

Conflicting Advice: Why Picking a Strategy is Tough

There’s no universal bidding strategy that guarantees success across the board. The real answer to the “best” strategy lies in your business goals, campaign objectives, and available data.

Optmyzr’s data revealed that success in Google Ads is determined by multiple factors, and each bidding strategy has its strengths and weaknesses. Let’s break down the major categories.

Manual Bidding: Control at a Cost

For years, Manual CPC was the go-to for advertisers wanting full control. It allows precise bid adjustments, but Optmyzr’s analysis shows that it typically underperforms in CPA, Click-Through Rate (CTR), and Conversion Rate compared to automated strategies. Manual bidding only shines when paired with large budgets, making it impractical for small or mid-sized advertisers.

Interestingly, manual bidding can still be useful for niche campaigns, particularly when advertisers have a deep understanding of their market’s auction dynamics.

However, the research highlights that even in such cases, it’s tough to justify relying on manual bidding alone when automated strategies can handle larger datasets more efficiently.

Smart Bidding: The King of Conversions (With a Catch)

For accounts with more than 50 conversions in a 30-day period, Smart bidding strategies like Max Conversion Value and Target ROAS are hands-down winners in terms of ROAS, CPA, and conversion efficiency. Google’s machine learning algorithms excel at optimising bids when they have enough data to work with.

That said, Smart bidding isn’t perfect. It requires a high volume of conversions to hit optimal performance, and smaller accounts may struggle to reach the necessary thresholds.

For businesses with low conversion volumes, using micro-conversions—smaller but relevant actions, such as a form submission—can help provide Google with more data, but only if the conversion values are appropriately assigned.

Auto Bidding: Best for Early-Stage Campaigns

Optmyzr’s analysis also found that Auto bidding strategies like Max Clicks are great for early-stage accounts where conversion data is still being collected.

These strategies work well for traffic-focused goals and can help advertisers get a feel for auction prices without relying on conversions. Once enough data has been gathered, businesses can transition into more sophisticated strategies like Smart bidding.

Bid Caps and Targets: Do They Help?

One of the more contentious topics in PPC management is the use of bid caps and targets.

While the intention behind setting a bid cap is to manage budget and control costs, Optmyzr’s study found that they often introduce more problems than they solve. Setting bid caps too low can limit ad exposure, while setting targets incorrectly can reduce efficiency across campaigns.

In fact, the data suggests that applying bidding targets may hurt performance more than help it. Advertisers using Max Conversions or Max Conversion Value without targets saw better results on key metrics like ROAS and CPA than those who set strict targets.

Human error plays a large role here, with many advertisers setting goals that don’t align with their actual data, leading to underperformance.

The Budget Dilemma: Does More Spend Mean Better Results?

A common belief in digital advertising is that higher spend guarantees better results, especially with Smart bidding. However, Optmyzr’s findings challenge this assumption.

Smart bidding performs best when budgets fall between $10K and $50K per month, but large budget increases can destabilise performance. In contrast, Manual CPC shows a more linear relationship with budget increases, making it the only strategy that consistently benefits from larger ad spends.

Small-budget accounts can still see success with Smart bidding, provided they have enough conversion volume. It’s the quality of the data, not the budget size, that drives success in these campaigns.

Multi-Strategy Approach: The Future of PPC?

Perhaps one of the most revealing findings is that 48% of advertisers use more than one bidding strategy within the same Google Ads account. This hybrid approach allows advertisers to adjust their tactics based on campaign goals and account maturity.

For example, early-stage campaigns may use Auto or Manual bidding to build data, transitioning into Smart bidding once enough conversions have been achieved.

This multi-strategy approach speaks to the complexity of modern PPC management. Rather than relying on one technique, savvy advertisers use a combination of strategies to meet evolving campaign goals.

Key Takeaways

1. Max Conversion Value is the best Smart bidding option for high-ROAS campaigns, while Max Clicks is an underused but effective Auto bidding strategy for traffic-based goals.
2. Manual CPC struggles to keep up with automated strategies in most cases, but it can work in high-budget, highly-managed campaigns.
3. Setting bid caps and targets often hurts performance, with Smart bidding strategies performing better when allowed to operate freely.
4. Conversion volume matters more than budget size. Smaller-budget accounts with strong conversion data often outperform larger-budget accounts with weaker data.
5. Advertisers should consider using multiple bidding strategies to optimise their campaigns, adjusting tactics as their accounts grow.

For more details, check out the complete study here.