The Bidding Strategy Landscape
Google Shopping campaigns offer several bidding strategies, ranging from fully manual to fully automated. Each is designed for a different situation — and Google's own recommendations aren't always right for your account stage, data volume, or margin structure.
Here's what's available for Standard Shopping campaigns:
- Manual CPC — You set the max CPC for each product group
- Enhanced CPC (ECPC) — Manual bids adjusted automatically by Google's signals
- Maximize Clicks — Google spends your budget to get as many clicks as possible
- Target ROAS — Google optimizes bids to achieve your target return on ad spend
- Maximize Conversion Value — Google spends to maximize total revenue (no ROAS target)
For Performance Max campaigns, you only get Target ROAS or Maximize Conversion Value — Manual CPC isn't available.
Google deprecated Enhanced CPC for Shopping campaigns in 2025. If you're still running it, your campaigns are likely defaulting to manual CPC behavior. Migrate intentionally to Target ROAS or Manual CPC rather than letting it drift.
Manual CPC: When to Use It Still
In a world where Google pushes Smart Bidding at every turn, Manual CPC still has legitimate use cases. Don't let Google's recommendations sway you away from it if your situation calls for it.
When Manual CPC makes sense
- New accounts with no conversion data — Smart Bidding needs 30–50 conversions per month to work properly. Below that, you're better off with manual control.
- Accounts coming out of suspension — After a GMC suspension, your conversion history is disrupted. Manual CPC gives you stable, predictable spending while you rebuild data.
- Very low-volume, high-margin products — If you sell 5 products a month at $500 margin each, Manual CPC with conservative bids protects you from Smart Bidding's volatile behavior.
- Testing new product groups — When launching new products, Manual CPC lets you gather performance data before letting the algorithm optimize.
Manual CPC best practices
- Start bids conservatively (50–70% of your target CPC) and raise them based on impression share data
- Segment your product groups by performance tier so you can bid differently for bestsellers vs. slow movers
- Check impression share regularly — if it's below 60% for top products, bids are probably too low
- Review and adjust bids weekly until performance stabilizes
Enhanced CPC: The Middle Ground
Enhanced CPC (ECPC) was designed to be a bridge between manual control and Smart Bidding — your manual bids, but with Google adjusting them up or down based on conversion likelihood signals.
As noted, Google deprecated ECPC for Shopping in 2025. For most accounts, the better decision is to either:
- Stay on Manual CPC (full control), or
- Migrate to Target ROAS (full Smart Bidding)
There's less of a case for a middle ground in modern Shopping campaigns.
Maximize Clicks
Maximize Clicks tells Google: spend my budget on as many clicks as possible, with no specific ROAS or CPA target.
When it's useful
- Brand awareness campaigns where conversion volume doesn't matter (rare in Shopping)
- Gathering initial data on a brand new campaign before you have enough conversions for Target ROAS
- Free listings campaigns (though these don't use bidding in the traditional sense)
When it's dangerous
- When you care about ROAS — Maximize Clicks ignores conversion value entirely
- When you have high-ticket items — Google may spend your budget on cheap, low-AOV clicks
- Any situation where profitable sales are the goal
Maximize Clicks with a max CPC cap can work well as a "ramp-up" strategy for new campaigns: let Google find traffic, cap your per-click cost, gather conversion data for 2–4 weeks, then switch to Target ROAS once you have enough conversions.
Target ROAS: The Gold Standard
Target ROAS (tROAS) is the primary Smart Bidding strategy for Shopping campaigns. You tell Google the ROAS you want to achieve, and Google's algorithm adjusts bids in real-time at every auction to achieve it.
Example: Set Target ROAS to 400% → Google aims to generate $4 in revenue for every $1 of ad spend.
When to use Target ROAS
- You have at least 30–50 conversions per month (ideally 50+)
- You have accurate conversion tracking with real transaction values
- Your average order value is relatively consistent (high variance AOV makes tROAS harder to hit)
- You want to scale volume while maintaining efficiency
Setting the right ROAS target
Don't set your ROAS target based on what you want — set it based on what your account can actually achieve. If your historical ROAS is 300%, starting with a target of 600% will severely limit your traffic.
- Look at your historical blended ROAS over the past 30–60 days
- Set your initial target at 10–15% above your current actual ROAS
- Evaluate after 2–3 weeks — if impression share is high and ROAS is met, raise the target by another 10%
- Continue iterating upward until you find the efficiency/volume tradeoff that works for your business
Setting a Target ROAS that's too high starves your campaigns of traffic. Google can't show your ads for auctions it estimates won't meet your ROAS target — so impression share collapses, conversion volume drops, and the algorithm's data quality degrades. This creates a negative spiral. Start achievable and ratchet up gradually.
Target ROAS and the learning period
When you first apply Target ROAS, or when you make significant changes to the target, your campaign enters a learning period (typically 1–2 weeks). During this time, performance may be volatile. Don't panic and change things again — each change resets the learning period.
Maximize Conversion Value
Maximize Conversion Value tells Google: spend my budget to get as much revenue as possible, without a specific ROAS constraint.
This is appropriate when:
- You're focused on total revenue growth and are willing to let ROAS vary
- You're entering a competitive period (Black Friday, peak season) and want to maximize total sales
- You're building market share and the cost is acceptable
It's not appropriate when:
- Profitability is your primary concern
- You have thin margins where overspending is dangerous
The Bidding Decision Framework
Use this decision tree to pick the right strategy:
-
Do you have fewer than 30 conversions/month?
→ Start with Manual CPC. Gather data. Revisit when you hit 30+. -
Do you have 30–50 conversions/month?
→ Try Maximize Conversion Value (no ROAS target) to grow volume while building data. Move to Target ROAS once you hit 50+. -
Do you have 50+ conversions/month with consistent data?
→ Target ROAS is your strategy. Set it at your historical ROAS + 10–15%. -
Are you in a high-growth or peak season?
→ Consider Maximize Conversion Value to maximize revenue, then return to Target ROAS in normal periods. -
Do you have wildly variable AOV or margin?
→ Consider Manual CPC with product group segmentation by margin tier, rather than letting Smart Bidding optimize across products with very different profitability.
Managing the Learning Period
Every time you switch bidding strategies or make significant changes to an existing Smart Bidding campaign, you trigger a learning period. Here's how to manage it without losing money:
- Don't change strategies mid-period — Give any new bidding strategy at least 2 full weeks before evaluating
- Don't make multiple simultaneous changes — Changing bidding strategy AND restructuring product groups AND adding new products at the same time makes it impossible to know what's causing performance changes
- Budget during learning periods — Performance can be volatile during learning. Don't judge the strategy by week one
- Watch for the "Limited by learning" status — If your campaign shows this status, it means Smart Bidding doesn't have enough data. Either reduce your ROAS target or wait for more data to accumulate
Bid Adjustments and Modifiers
With Smart Bidding strategies, many traditional bid adjustments are automated — but some still apply:
Device adjustments
Even with Smart Bidding, you can set device bid adjustments. If your mobile conversion rate is significantly lower than desktop (common for complex/high-AOV products), a -20% to -30% mobile modifier can improve efficiency.
Scheduling adjustments
If you know your conversion rate drops significantly at certain hours (e.g., 2–5am), ad scheduling or dayparting can prevent wasteful spending during those windows.
Audience layering
Adding audience lists (previous visitors, cart abandoners, past customers) to your Shopping campaigns allows you to monitor performance by audience segment and set bid adjustments for high-value audiences.
The best bidding strategy is the one you can commit to for at least 30 days without changing. Smart Bidding needs time and stability to work. Patience is a bidding strategy.
Before optimizing your bidding strategy, make sure your GMC account is healthy and your products are actually serving. Run a free compliance scan to check for issues that could be limiting your campaign performance.