What is automated bidding?

Automated bidding is a digital advertising feature that uses algorithms, machine learning, and campaign data to automatically set or adjust bids based on an advertiser’s chosen goal. Instead of manually managing every bid, advertisers allow the advertising platform to optimize bids to help achieve objectives such as generating clicks, increasing conversions, acquiring leads, or maximizing sales revenue.

Automated bidding is available on platforms such as Google Ads and Meta Ads, although the strategies and controls differ between platforms.

Key features of automated bidding

• Automatic bid adjustments: The platform sets or adjusts bids according to the selected bidding strategy.

• Goal-based optimization: Bids are optimized toward objectives such as clicks, conversions, or conversion value.

• Machine learning: Some strategies use historical campaign data and predictions to guide bidding decisions.

• Real-time signals: Depending on the platform and strategy, bids can reflect factors such as device, location, time, and auction context.

• Reduced manual work: Advertisers spend less time adjusting individual bids.

• Performance monitoring: Advertisers can evaluate results using metrics such as CPC, CPA, conversion rate, and ROAS.

Common automated bidding strategies

Not all strategies are available for every campaign type or advertising platform.

Example of automated bidding

A Shopify jewellery store wants to increase online purchases. It launches a Google Ads campaign using Maximize Conversions with a daily budget of ₹2,000.

Google Ads automatically adjusts bids in eligible auctions to help generate as many purchases as possible within the budget. The store monitors conversion volume, cost per purchase, and ROAS to assess performance.

Automated bidding vs. manual bidding

In short: Automated bidding uses advertising platform algorithms to manage bids toward a chosen campaign objective, helping advertisers reduce manual work and optimize campaign performance.