Google is beginning to introduce Smart Bidding Exploration into Performance Max campaigns, offering advertisers more flexibility to capture conversions by relaxing stringent ROAS targets.
Smart Bidding Exploration in Performance Max could lead to unlocking more conversions through broader ROAS targets, while also potentially lowering efficiency if the AI system over-prioritizes volume.
It is ultimately a shift in control. Google automation is doing more of the thinking, so marketers will again want to assess trade-offs between growth and return on ad spend.
There is now a Smart Bidding Exploration toggle in Performance Max accounts. This means that the algorithm can “relax” ROAS targets when it sees fit, which will likely facilitate greater volume through lower-intent search queries.
This was first introduced at the Google Marketing Live, but had only been framed as a test of the bidding option used in search campaigns.
Jonni Lomax, Company Director at Lomax PPC, noticed the toggle this week, saying before on X that: “optimistically, this means data quality is maintained when competition is high” and “pessimistically, it will lower the overall ROAS.”
Advertisers find themselves in a familiar trade off, again, of more conversions faster over a tighter efficiency. Essentially, marketers using Performance Max now can see an unexplored demand with Smart Bidding Exploration and the real test will be if the conversions made up for any less discipline on ROAS.
Coming to an end, this is one step closer to automation in Google Ads. With the new Smart Bidding Exploration, you can discover new conversion opportunities and expand your reach beyond strict ROAS. But it’s all about how you adapt to the changes while keeping up with your strategy.
