How to Configure Smart Bidding in Your Google Ad Grant Account

Smart Bidding is the automated bidding system that makes your Google Ad Grant competitive. It removes the $2 CPC cap, allowing your ads to bid $4-$12+ per click. It's also a compliance requirement for accounts created after April 2019.

But "turn on Smart Bidding" is easier said than done. Which strategy do you choose? What settings do you configure? What happens during the transition? How do you know if it's working?

This tutorial walks through the actual setup process for each Smart Bidding strategy, including when to use each one, what to configure, and what to expect afterward.

Key Takeaways - Start with Maximize Conversions (no target) for most campaigns - Switch to Target CPA once a campaign has 30+ conversions in 30 days - You need active conversion tracking before Smart Bidding can work effectively - Expect 1-2 weeks of fluctuation during the transition; don't panic

Prerequisites

Before configuring Smart Bidding, ensure:

1. Conversion tracking is active: At least one meaningful conversion action recording data in Google Ads
2. GA4 is linked: Your GA4 property is connected to your Google Ads account
3. Auto-tagging is enabled: Admin, then Account settings, then Auto-tagging checked

Without conversion tracking, Smart Bidding can't optimize effectively. It will default to a "best guess" approach that typically underperforms. Fix tracking first.

Setting Up Maximize Conversions

This is the recommended starting strategy for most Grant campaigns. It tells Google: "spend my budget to get as many conversions as possible."

For a New Campaign

During campaign creation:

1. In the Bidding section, select Maximize conversions
2. Leave the Target CPA field blank (don't set a target yet)
3. Continue with the rest of your campaign setup

For an Existing Campaign

1. Go to Campaigns, then click on the campaign name
2. Click Settings (left sidebar)
3. Click on the Bidding section
4. Click Change bid strategy
5. Select Maximize conversions
6. Leave Target CPA blank
7. Click Save

What to Expect After Switching

Week 1: Performance will fluctuate. The algorithm is learning which auctions lead to conversions for your account. You may see higher CPCs than before (this is normal; the $2 cap is gone), some days with higher spend and some with lower, and possibly a temporary dip in conversions.

Week 2: The algorithm stabilizes. Spend becomes more consistent. Conversions should start improving as the algorithm learns.

Week 3+: Performance should exceed your previous manual bidding results. More budget spent, more competitive ad positions, and (ideally) more conversions.

Do not switch back during the learning period. Changing bid strategies resets the learning. Give it at least 2 full weeks before evaluating.

Setting Up Target CPA

Target CPA tells Google: "get me conversions at approximately this cost each." Use it when a campaign has enough conversion history for the algorithm to reliably predict performance.

When to Switch from Maximize Conversions to Target CPA

Switch when a campaign has:

• 30+ conversions in the last 30 days (the minimum for reliable optimization)
• A stable conversion pattern (not wildly fluctuating week to week)
• A clear average CPA you can calculate from recent data

How to Calculate Your Target

1. Go to the campaign's overview
2. Look at the last 30 days: total Cost and total Conversions
3. Divide Cost by Conversions = your current average CPA
4. Set your Target CPA at this number or 10-20% above it

Example: Campaign spent $2,400 and got 80 conversions in the last 30 days. CPA = $30. Set Target CPA to $30-$36.

Why set slightly above, not below? A Target CPA that's too aggressive (too low) causes the algorithm to underbid, reducing impressions and spend. It's better to start generous and tighten gradually.

How to Configure

1. Go to campaign Settings, then Bidding
2. Click Change bid strategy
3. Select Maximize conversions
4. Check the box for Set a target cost per action
5. Enter your calculated Target CPA
6. Click Save

Adjusting Over Time

• If spend drops significantly after setting Target CPA: your target is too low. Increase it by 20%.
• If CPA rises above your target consistently: the algorithm is struggling. Check if conversion tracking is still working correctly. Consider reverting to Maximize Conversions without a target.
• Review monthly: Adjust your Target CPA based on the most recent 30 days of data.

Setting Up Maximize Conversion Value

Use this when different conversions have different values to your organization (e.g., a donation is worth more than a newsletter sign-up).

Prerequisites

Your conversion actions must have monetary values assigned:

1. Go to Goals, then Conversions, then Summary
2. Click on each conversion action
3. Under Value, assign a dollar amount (e.g., donation = $75, volunteer sign-up = $50, email sign-up = $5)
4. Save each conversion action

How to Configure

1. Go to campaign Settings, then Bidding
2. Click Change bid strategy
3. Select Maximize conversion value
4. Optionally set a Target ROAS (leave blank to start; the algorithm will maximize total value without a return target)
5. Click Save

This strategy prioritizes auctions that are likely to drive higher-value conversions. A click that might lead to a $75 donation will get a higher bid than a click that might lead to a $5 email sign-up.

Setting Up Target ROAS

Target ROAS (Return on Ad Spend) is the most advanced strategy. It's primarily useful for organizations with strong donation tracking where revenue data flows back to Google Ads accurately.

When to use: Only when you have consistent, accurate conversion value data (typically from donation tracking) and 30+ conversions with value in the last 30 days.

How to calculate your target: ROAS = Conversion Value / Cost. If you spent $1,000 and generated $5,000 in donations, your ROAS is 500%. Set your Target ROAS at or slightly below your current average.

Configuration: Same as Maximize Conversion Value, but check "Set a target return on ad spend" and enter your percentage.

Most Grant accounts don't need Target ROAS. Maximize Conversions or Target CPA serve the vast majority well.

Transitioning Multiple Campaigns

If you're switching multiple campaigns from manual bidding to Smart Bidding:

Don't switch everything at once. Change one campaign per week. This lets you:

• Monitor each transition individually
• Identify if any specific campaign has issues
• Avoid a scenario where all campaigns are in learning mode simultaneously (which could temporarily tank your account CTR)

Recommended order:

1. Brand campaign first (lowest risk, fastest learning)
2. Highest-converting campaign second (most data for the algorithm)
3. Remaining campaigns one per week

Troubleshooting Smart Bidding Issues

Spend dropped to near zero after switching:

• Check if conversion tracking is working. The most common cause.
• If using Target CPA, the target may be too low. Increase by 20-50%.
• The algorithm may need more time. Wait 2 full weeks before making changes.

CPCs are much higher than expected:

• This is normal and expected. Smart Bidding removes the $2 cap. CPCs of $4-$12 mean your ads are more competitive.
• High CPCs that don't result in conversions suggest a conversion tracking issue or a landing page problem.

Conversions decreased after switching:

• Check conversion tracking configuration. Has anything changed?
• Give the algorithm 2 weeks. Early fluctuations are normal.
• If conversions don't recover after 2 weeks, check if your conversion actions are still recording accurately.

Audit Your Bid Strategy with GrantMax

GrantMax checks whether every campaign is using an approved Smart Bidding strategy and evaluates whether your targets (CPA, ROAS) are set appropriately based on your historical data.

Check My Bidding Setup - Free

Prefer to hand it off to an expert? Our Google Ad Grant management services include bid strategy optimization. Explore Grant Services

Frequently Asked Questions

Can I use different bid strategies for different campaigns? Yes, and you should. Brand campaigns might use Maximize Conversions without a target, while mature service campaigns use Target CPA. Each campaign can have its own strategy.

What if I don't have any conversion data yet? Start with Maximize Conversions without a target. It will function similarly to Maximize Clicks but will start optimizing for conversions as soon as data comes in. Your priority should be getting conversion tracking set up as quickly as possible.

How often should I review my bid strategy? Monthly. Check whether each campaign's CPA is within an acceptable range, whether any campaign's spend has dropped unexpectedly, and whether any campaign has accumulated enough conversions to move from Maximize Conversions to Target CPA.

Are these strategies the same globally? Yes. Smart Bidding strategies and their configuration are identical for Grant accounts worldwide.

Key Takeaways

• Start with Maximize Conversions (no target) for most campaigns
• Switch to Target CPA when a campaign hits 30+ conversions in 30 days
• Calculate Target CPA from your last 30 days of data; set at or slightly above average
• Maximize Conversion Value when different conversions have different values
• Don't switch all campaigns at once: transition one per week
• Expect 1-2 weeks of fluctuation during each transition; don't panic
• Active conversion tracking is mandatory for Smart Bidding to work

Published: March 2026 | Last Updated: March 2026 | Author: GrantMax Category: Getting Started | Tags: Account Setup, Bidding