Which Bid Strategies Does Google Ad Grants Actually Require?

If your Google Ad Grant account was created after April 22, 2019, you're required to use conversion-based Smart Bidding for all campaigns. This isn't a suggestion; it's a compliance requirement that Google actively enforces.

This rule causes confusion because there are multiple Smart Bidding strategies to choose from, the requirement doesn't apply equally to all accounts, and the relationship between bid strategies and the legacy $2 CPC cap isn't always clear. This guide untangles all of it.

Key Takeaways - Accounts created after April 2019 must use conversion-based Smart Bidding - Four strategies qualify: Maximize Conversions, Maximize Conversion Value, Target CPA, Target ROAS - Smart Bidding removes the $2 CPC cap, enabling bids of $4-$12+ - You need working conversion tracking before Smart Bidding can function effectively

The Requirement

Google's policy states: accounts created on or after April 22, 2019 must use conversion-based Smart Bidding for all campaigns, unless using Smart Campaigns.

Campaigns that don't comply are subject to automatic bid strategy changes. This means Google may switch your bid strategy without asking, which can disrupt performance.

The Four Approved Strategies

Maximize Conversions: The Default Starting Point

For most Grant accounts, Maximize Conversions is the right starting strategy. Here's why:

• It has the lowest data threshold: it works with even minimal conversion data
• It gives Google maximum flexibility to spend your budget
• It removes the $2 CPC cap, allowing competitive bidding
• It doesn't require you to set a target (no guessing what your CPA "should" be)

The downside: Maximize Conversions will spend your entire daily budget regardless of conversion cost. If it's driving conversions at $50 each when they could be achieved at $20, it won't self-correct. That's where Target CPA comes in once you have enough data.

Target CPA: The Efficiency Upgrade

Once a campaign has accumulated 30+ conversions in the last 30 days, consider switching to Target CPA. You set a target cost-per-acquisition (e.g., "$15 per volunteer sign-up"), and Google bids to hit that average.

How to set your target: Look at your current CPA in the campaign (Conversions column divided by Cost column). Set your Target CPA at or slightly above that number. Setting it too low will cause the algorithm to underbid and reduce spend. Setting it too high is fine initially; the algorithm will optimize down.

Common mistake: Setting Target CPA to $1 when your actual CPA is $12. The algorithm can't find conversions at $1, so it stops bidding entirely and your spend drops to near zero.

Maximize Conversion Value: The Value-Aware Option

If your conversion actions have different values (e.g., donation = $75, volunteer sign-up = $50, email subscription = $5), Maximize Conversion Value tells Google to prioritize the higher-value conversions.

Requirement: You must assign monetary values to your conversion actions in Google Ads. Without values, this strategy has nothing to optimize for.

Target ROAS: The Advanced Option

Target ROAS is the most sophisticated strategy and is primarily useful for Grant accounts with strong donation tracking where you can measure the actual revenue generated by each ad click. Most nonprofit Grant accounts don't need this; Maximize Conversions or Target CPA serve the vast majority well.

The $2 CPC Cap and Smart Bidding

One of the most important things to understand about bid strategies in Grant accounts:

Manual CPC bidding is capped at $2.00 per click. This was the only option before 2019 and is still available for legacy accounts, but it severely limits your competitiveness. Paid advertisers routinely bid $5-$15+ for the same keywords, so a $2 cap means your ads rarely win valuable auctions.

Smart Bidding removes this cap entirely. With Maximize Conversions, Target CPA, or any other Smart Bidding strategy, your Grant can bid $4, $8, or even $12+ per click when the algorithm predicts a conversion is likely. This is one of the biggest levers for maximizing your budget utilization.

See our detailed guide on removing the $2 bid cap for more.

How to Switch Bid Strategies

From Manual CPC to Maximize Conversions

1. Ensure conversion tracking is active (at least one meaningful conversion recording)
2. Go to your campaign Settings
3. Under Bidding, click "Change bid strategy"
4. Select "Maximize conversions"
5. Leave the optional Target CPA field blank for now
6. Click Save

Expect a transition period: The algorithm needs 1-2 weeks to learn your account's conversion patterns. Performance may fluctuate during this time. Don't panic and switch back after 3 days.

From Maximize Conversions to Target CPA

1. Verify the campaign has 30+ conversions in the last 30 days
2. Check your current CPA (Cost / Conversions)
3. Go to campaign Settings, then Bidding
4. Select "Maximize conversions" with a Target CPA
5. Set the target at or slightly above your current CPA
6. Monitor for 2 weeks before adjusting

What About Maximize Clicks?

Maximize Clicks is not a conversion-based Smart Bidding strategy. It's a volume strategy that maximizes clicks regardless of whether those clicks convert. However, Google's documentation acknowledges it as an acceptable temporary starting point:

You can begin with Maximize Clicks to gather initial traffic and data, but your priority should be to implement conversion tracking immediately and switch to Maximize Conversions as soon as you have enough data (typically 15-30 conversions in the last 30 days).

Key difference: Maximize Clicks still has the $2 CPC cap. Only conversion-based strategies remove it.

Who Does the Bidding Requirement Apply To?

Even for older accounts, using manual bidding with a $2 CPC cap leaves enormous value on the table. The practical recommendation for every Grant account, regardless of creation date: use Maximize Conversions at minimum.

Performance Max and Bidding

Performance Max campaigns use the same Smart Bidding strategies (Maximize Conversions, Maximize Conversion Value, Target CPA, Target ROAS). The bidding requirement is automatically satisfied since PMax only supports these strategies. You cannot run PMax with manual bidding.

Audit Your Bid Strategy with GrantMax

GrantMax checks whether every campaign in your account is using an approved bid strategy and flags any campaigns still on manual bidding or Maximize Clicks. If your bid strategy is limiting your spend, you'll know exactly which campaigns to update.

Check My Bid Strategy - Free

Prefer to hand it off to an expert? Our Google Ad Grant management services handle everything for you, from setup to ongoing optimization. Explore Grant Services

Frequently Asked Questions

Can I use different bid strategies for different campaigns? Yes. Each campaign can have its own bid strategy. A common approach: Maximize Conversions for newer campaigns without much data, and Target CPA for mature campaigns with 30+ monthly conversions.

What happens if Google auto-switches my bid strategy? Google may switch non-compliant campaigns to Maximize Conversions automatically. While this prevents suspension, it may not be the optimal strategy for that campaign. Review your bid strategies monthly to ensure they match your goals.

My conversion tracking just started. Which strategy should I use? Start with Maximize Conversions. It's the most forgiving with limited data. Once you've accumulated 30+ conversions in 30 days in a campaign, consider moving to Target CPA for more control.

Do bid strategy requirements differ by country? No. The bidding requirements are identical for Grant accounts worldwide.

Key Takeaways

• Accounts created after April 2019 must use conversion-based Smart Bidding
• Four approved strategies: Maximize Conversions, Maximize Conversion Value, Target CPA, Target ROAS
• Start with Maximize Conversions for most campaigns; upgrade to Target CPA once you have 30+ conversions/month
• Smart Bidding removes the $2 CPC cap, dramatically increasing competitiveness
• Conversion tracking must be active for Smart Bidding to work effectively
• Maximize Clicks is temporary only: switch to a conversion-based strategy as soon as possible
• The requirement is the same globally for all countries

Published: March 2026 | Last Updated: March 2026 | Author: GrantMax Category: Compliance | Tags: Compliance, Bidding