Are You Letting Google Overspend Your Ad Budget? Watch my new video on The Risks of Smart Bidding in Google Ads
Activating Smart Bidding in any Google Ads campaign can be your biggest opportunity for growth.
However, it can also be your biggest risk.
If you enable Smart Bidding at the wrong time or in the wrong way, it can completely derail your account.
In this weeks newsletter, we will break down some of the most common misconceptions about Smart Bidding and how to use it correctly.
The tCPA and tROAS Myth
This is where many businesses go wrong.
The conversion data you see inside your Google Ads dashboard is useful, but it does not tell the full story of what is happening in your business.
To succeed with Smart Bidding, you must first understand what success actually means for your business.
I posted a short clip recently from a longer video that showed a campaign with a return on ad spend (ROAS) of 200 percent. The comments were full of people saying:
👉 "Wait please don’t tell me you are actually managing other people’s campaigns"
👉 "1.88 Roas with google ads is literally disgusting"
👉 "1.88 return of investment is not a level to be acting like an expert your literally a newbie"
But here is the key point. That business sells a one-time product and then offers an extended service plan that generates additional profit over time.
When we took on the account, we worked with the business owner to lower their target ROAS so they could sell more units on the front end. The long-term profit came from the service plan, not the initial sale.
This is why you should never define success purely by how high your tROAS is or how low your tCPA appears.
Those metrics need to align with your real-world business model and profit structure.
Your tCPA and tROAS Are a Brake, Not an Accelerator
Too many advertisers set their tROAS or tCPA based on what they want to achieve, rather than what their data can currently support.
When setting targets:
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Use Target CPA Gradually. If your current cost per acquisition (CPA) is thirty dollars and your goal is fifteen, do not immediately set your target CPA to fifteen. Step it down gradually to twenty-five, then twenty, and finally fifteen. This gives Google’s algorithm time to adjust without losing volume.
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Monitor Performance Every Sixty to Ninety Days. Avoid changing your bidding strategy too frequently. The Smart Bidding algorithm needs time to stabilise and collect enough data before any adjustments.
The goal is not to rush the process but to give Google the right environment to learn and optimise effectively.
Real-Life Examples of Smart Bidding Wins
When Smart Bidding works, it can drive exceptional results.
For example, one of our clients began with a manual bidding strategy while collecting conversion data. Once we had enough volume, we introduced tROAS and gradually reduced the target to scale the campaign profitably.
As the algorithm learned which audiences were most likely to convert, we saw a steady improvement in efficiency and revenue growth.
The key was timing, data quality, and patience.
Key Takeaways
Smart Bidding can transform performance, but only if implemented strategically.
Before enabling Smart Bidding, make sure that you:
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Understand your true business model and profit margins
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Have reliable conversion data inside your account
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Adjust targets gradually to give the algorithm time to learn
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Evaluate results over time, not just in short cycles
If used correctly, Smart Bidding can be one of the most powerful growth tools in Google Ads. Used incorrectly, it can stall campaigns and waste valuable budget.
Need help setting the right Smart Bidding strategy for your business?
Download the Smart Bidding Checklist and start optimising your campaigns today.
Have a great week,
Aaron
- Monday 3rd November, 8pm AEST: The Risks of Smart Bidding in Google Ads
- Wednesday 5th October, 8pm AEST: Outdated Google Ads Strategies
Head Over To My YouTube Channel 👇
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[LIVE MASTERCLASS + Q&A]
Account Reviews | with Aaron Young 💻
Wednesday, 5th, November, 2025, 10:00 AM (AEST)
Wednesday, 5th, November, 2025 12:00 AM (GMT)
Tuesday, 4th, November 2025, 4:00 PM (PT)
