The average cost per click in Google Ads reached $5.26 in 2025, with conversion rates improving by 65% across industries. Smart Bidding with AI-powered optimisation is no longer optional – it’s essential for ROI.

Google Ads automation has evolved significantly. Smart Bidding uses machine learning to optimise bids in real-time based on countless signals like device, location, time of day, and user behaviour. The algorithms continuously improve as they gather more data.

Key automated bidding strategies:

Maximise Conversions:

Automatically sets bids to get the most conversions within your budget.

Maximise Conversion Value:

Focuses on getting the highest revenue, not just conversion volume.

Target ROAS:

Aims for a specific return on ad spend you set.

Google’s push towards Broad Match combined with Smart Bidding is showing strong results. For example, a women’s hat retailer using Broad Match might show ads for “winter headwear for women” or “women’s accessories”, with Smart Bidding automatically optimising for high-quality leads.

Performance Max campaigns now shift budgets across Google’s ecosystem (Search, Display, YouTube, Gmail) to wherever ads perform best, maximising ROI through cross-channel bidding.

First-party data integration has become crucial. With 71% of publishers reporting first-party data as their primary source of positive ad performance, use Customer Match lists, GA4 signals, and enhanced conversions to maintain targeting precision.

The average click-through rate for Google Search ads is 6.66%, but top performers see much higher by embracing automation smartly.