Digital advertising is booming in Bangladesh. With 66.9 million internet users (39% penetration) and over $350 million spent on digital marketing in 2022, Bangladeshi businesses are increasingly turning to Google Ads to reach customers online.
Google’s Smart Bidding – automated bidding strategies powered by AI – can supercharge campaign results by automatically adjusting bids to hit specific goals. In this guide, we’ll explain what Smart Bidding is, how to set up Target CPA and Target ROAS strategies, and how local advertisers can optimize these campaigns for the Bangladeshi market.
Smart Bidding refers to automated bid strategies that use Google’s AI and machine learning to optimize for conversions or conversion value at every auction. For example, if Google’s AI predicts a user searching from Dhaka at 8 PM is likely to convert at high value, Smart Bidding will automatically raise the bid for that auction.
In contrast, it bids lower when the conversion likelihood or value is predicted to be low. This auction-time bidding means advertisers don’t have to manually adjust bids by device, location, or time. Smart Bidding factors in hundreds of signals (device, location, time, demographics, user behavior, etc.), making it a powerful tool even for small campaigns.
In fact, Google notes that Smart Bidding “works successfully for businesses large and small,” and can even improve new campaigns with limited historical data. Smart Bidding offers four main strategies: Maximize Conversions, Maximize Conversion Value, Target CPA, and Target ROAS.
This playbook will focus on Target CPA (tCPA) and Target ROAS (tROAS), which let you specify a desired cost or return goal. Target CPA automatically finds bids to get as many conversions as possible at your target cost per action. Target ROAS automatically adjusts bids to achieve a specific return-on-ad-spend (for example, “₹5 of revenue per ₹1 spent”). In both cases, Google’s AI uses your conversion data and real-time signals to set optimal bids.
Setting Up Smart Bidding Campaigns in Google Ads
Before turning on Smart Bidding, make sure your account is ready. Conversion tracking must be correctly set up, with conversions defined (sales, sign-ups, etc.) and, for tROAS, each conversion should have a value (e.g. sales amount).
Google requires sufficient data: generally at least 15–30 conversions in the past 30 days for Target CPA, and around 50 conversions for Target ROAS to work smoothly. (If you don’t meet these thresholds, consider starting with Maximize Conversions or a portfolio bid strategy that pools data across campaigns.)
Once tracking is in place, choose the right strategy. In the Google Ads campaign settings under Bidding, you can select Target CPA or Target ROAS. Enter your goal: for tCPA, set the average cost per conversion you want; for tROAS, set a percentage (e.g. 500% to get $5 back for every $1 spent). Google often provides a recommended target based on past performance – you can use this as a starting point or adjust it. Note that tCPA and tROAS can be applied at the campaign level or as a portfolio across multiple campaigns.
Once enabled, Smart Bidding goes into a “learning phase” of about 1–2 weeks. During this time, avoid making drastic changes. The system is using your past data and real-time auction signals to model each auction. It’s normal for performance to fluctuate early on.
After the learning period, Google Ads will typically recommend adjustments to targets or budgets. For example, if your target CPA is set too low, you might see few conversions – you may need to raise the target or give it more time. Likewise, setting a very high ROAS target may limit scale (fewer impressions) because the algorithm bids more conservatively.
Step-by-step to set Target CPA or ROAS:
- Verify conversion tracking is active and collecting data.
- In Google Ads, go to your Search or Display campaign and click Settings > Bidding.
- Choose Change bid strategy > Target CPA (or Target ROAS).
- Enter your target (e.g. “200 BDT” for tCPA or “300%” for tROAS) based on your goals.
- Save and let the campaign run. Monitor performance and adjust the target gradually if needed.
Target CPA Bidding (tCPA) Explained
Target CPA is designed to maximize the number of conversions (sales, leads, etc.) while achieving your average cost per conversion goal. For example, if you set a tCPA of 100 BDT, Google will try to get you as many conversions as possible at around 100 BDT each. It does this by predicting the likelihood of conversion in each auction: if a user appears likely to convert, Google may bid above average; if not, it bids lower.
Implementing tCPA: in the campaign’s bidding settings, select “Target CPA” and enter your desired cost per acquisition. Google may suggest a starting CPA based on your recent history. Use that suggestion or fine-tune it. Remember, don’t set the target too low initially, or you risk missing many auctions. For example, if your average CPA has been 150 BDT, start around that range. Over time you can gradually adjust.
Unlike manual CPC where you set each bid, tCPA dynamically finds the optimal bid for each auction. It also supports device-specific adjustments. For instance, you can set different CPAs for mobile versus desktop if mobile conversions cost less. Google Ads also allows portfolio bid strategies: grouping multiple campaigns under one tCPA target to pool data (helpful for smaller local campaigns).
Optimization tips for tCPA:
- Include all relevant conversion actions in your conversion setting (so Smart Bidding has more data).
- Segment performance by device/time to see if certain times or devices perform better. You can set bid adjustments at the ad group level if needed.
- Use negative keywords and good ad copy to ensure the algorithm is learning from high-quality traffic (avoid clicks from irrelevant searches).
- Monitor the “average CPA” metric. Keep it near your target on average – fluctuations are normal.
Google’s support help indicates that Target CPA bidding “automatically finds an optimal bid for your ad” each auction using historical data and contextual signals. In practice, if actual costs deviate, it’s due to external factors (seasonality, competitive changes, etc.), but the algorithm will self-correct over time.
Many Bangladeshi advertisers find that after an adjustment period, conversions increase while cost stays around the target. For example, a local Dhaka e-commerce store switching to tCPA might see a jump in sales volume once the bid strategy aligns with real-time auction insights.
Target ROAS Bidding (tROAS) Explained
Target ROAS is ideal when you care about maximizing revenue (or value) for every taka spent. With tROAS, you tell Google a desired return on ad spend; Google then predicts conversion values to hit that target. For instance, setting a 500% tROAS means you want 5 BDT in revenue for every 1 BDT spent. The algorithm will bid higher for auctions likely to produce high-value sales, and lower for less valuable ones.
To use tROAS, your conversion tracking must send a value for each conversion (e.g. order value). In the campaign’s bidding settings, select “Target ROAS” and specify your target percentage. Google often shows a recommended range. Remember that like tCPA, setting the target too high can reduce volume. Start with a realistic ROAS, perhaps based on average historical performance.
Google’s help explains: “Using Google Ads Smart Bidding, this bid strategy analyzes and uses Google’s AI to predict the value of a potential conversion… Then, Google’s AI adjusts your bids… to maximize your return on them.”. So, if a conversion is likely worth more (e.g. a big sale), tROAS will bid aggressively. If not, it holds back.
Target ROAS tips:
- Ensure you track actual purchase values (in BDT). If you sell products at different prices, accurate values are crucial.
- If you have few conversion values, consider enabling conversion value rules in Google Ads to adjust values for high-priority products or customer segments.
- As with tCPA, give the algorithm time to learn. You may see a dip in conversions initially but typically an increase in average order value or profit.
- According to Google, “Google Ads will try to keep your conversion value per cost equal to the target ROAS you set… using real-time signals such as device, browser, location, and time of day.”.
Smart Bidding recommends more data for tROAS: Google suggests at least 50 conversions in 30 days for optimal performance. If a campaign is smaller (e.g. a new product in Bangladesh), you might run a broader strategy (like Maximize Conversion Value) until enough data accrues, then switch to tROAS.
Optimizing and Monitoring Your Smart Bidding Campaigns
Once Smart Bidding is active, ongoing optimization is key. Monitor performance through Google Ads reports: focus on metrics like CPA, ROAS, total conversions, and conversion value. The Bid strategy report in Google Ads lets you see how your tCPA or tROAS strategy is performing over time. Also compare segment reports (e.g. by device or time of day) to spot trends.
- Budget and Target Alignment: Make sure your daily budget can support your targets. If your budget is too low relative to target ROAS, Google may limit impressions. For example, if you set an aggressive ROAS but have a small budget, you might see very few conversions. In that case, either increase the budget or lower the ROAS goal slightly.
- Seasonality Adjustments: Bangladesh has shopping peaks around events like Eid, Pohela Boishakh or year-end sales. Smart Bidding algorithms adapt over weeks, but if you expect a short-term spike, use Seasonality Adjustments (in Google Ads) to signal expected conversion lift during those days, helping the algorithm bid up as needed.
- Use Broad Match Keywords: Google recommends pairing Smart Bidding with broad match keywords to help the algorithm learn faster and find more auctions. Don’t over-constrain with only exact match if you can avoid it.
- A/B Testing: Even with Smart Bidding, it can help to test settings. For example, you might experiment with two identical campaigns – one on target CPA and one on target ROAS (if you can measure both conversions and value) – and compare results after a month. Use Google Ads’ Experiments tool for a controlled test.
At Implevista, our PPC services help local businesses continually refine these settings. For instance, if a campaign’s actual CPA consistently stays below the target, we might gradually lower the tCPA to get more volume while maintaining cost efficiency. If a target ROAS campaign underperforms, we analyze which keywords or ads yield higher-value conversions and exclude low-value traffic.
Smart Bidding for the Bangladeshi Market
Bangladesh’s digital landscape has its own traits. Mobile internet connections exceed the population size, and many users browse primarily on mobile devices. Smart Bidding’s ability to factor in device signals is therefore particularly useful: it can automatically bid higher on mobile for campaigns where mobile users tend to convert.
Local language and geography: If your ads are in Bangla or target specific cities (Dhaka, Chittagong, etc.), Smart Bidding will learn those patterns too. For example, bids might be higher during Dhaka rush hour or for Dhaka users if they convert better.
Competitive market: Google’s own data suggests Bangladesh’s Google Ads CPCs vary widely by industry, but generally, targeting high-intent search terms yields quality leads. Smart Bidding helps maximize ROI even in competitive auctions. A local travel agency using Implevista’s IVTrip travel software saw that applying tROAS for holiday package ads increased booking revenue while controlling ad spend.
Monetization context: Although this guide focuses on advertisers, note that Bangladesh also has many content sites monetizing with Google products. Website owners often use Google AdSense to monetize their traffic (earning per click or impression). Advertisers, on the other hand, use Google Ads to promote products. Both operate within the Google ecosystem. Always ensure your ads and website deliver value – Smart Bidding rewards high-value conversions, so a user-friendly site and clear calls-to-action will improve your performance.
Throughout your Smart Bidding campaigns, link to proven resources. For example, Implevista’s own PPC Advertising service page showcases our expertise in driving conversions with Google Ads. And our blog posts (like A/B Testing Google Ads) provide additional optimization tips. By combining local market knowledge with these advanced bidding strategies, Bangladeshi advertisers can maximize their ROI on Google Ads.
Google Ads Smart Bidding (tCPA, tROAS) can significantly boost campaign performance by letting Google’s AI handle bid adjustments. By properly setting up conversion tracking, choosing realistic targets, and continuously monitoring performance, Bangladeshi advertisers can harness these automated strategies to increase leads and revenue. Remember to leverage local insights (mobile usage, language, seasonality) and follow best practices (enough data, incremental target changes) to get the best results.
For expert help implementing Smart Bidding in Bangladesh, contact Implevista. Our PPC Advertising services can handle everything from campaign setup to ongoing optimization. Explore our digital marketing blog for more tips, or subscribe to stay updated. Let’s optimize your Google Ads campaigns and drive measurable growth for your business!
FAQ
- What is Smart Bidding in Google Ads?
Smart Bidding is Google’s AI-driven automated bidding system that optimizes bids for conversions or conversion value in every auction. It includes strategies like Maximize Conversions, Target CPA, and Target ROAS, and uses real-time signals (device, location, time, etc.) to adjust bids. - When should I use Target CPA vs. Target ROAS?
Use Target CPA when your goal is to get as many conversions (sales or leads) as possible at a specific cost per conversion. Use Target ROAS when you want to maximize revenue or sales value, aiming for a specific return on ad spend (for example, “₹5 revenue per ₹1 spent”). Choose based on whether volume (tCPA) or profit/value (tROAS) matters more to your campaign. - How do I set up Target CPA bidding?
In Google Ads campaign settings, under Bidding, select Target CPA. Enter your desired cost per action (e.g. “100 BDT”). Google may suggest a starting value. Ensure your conversion tracking is set up and that you have at least ~15–30 conversions in the past 30 days. Save the settings and let the campaign run; monitor and adjust the target if needed. - How do I set up Target ROAS bidding?
In Google Ads, under Bidding, choose Target ROAS and input a percentage (e.g. “400%” for 4x return). You must track conversion values (e.g. sales amount) for Google to calculate return. Google suggests targets if you have conversion history. As with tCPA, have enough data (ideally 50 conversions) before using tROAS. Start with Google’s recommendation or your current ROAS as a baseline. - Do I need a certain number of conversions or budget?
Yes. Smart Bidding works best with enough data. Google recommends at least 15–30 conversions per month for tCPA and around 50 for tROAS. Also ensure your daily budget can accommodate your targets – too small a budget or target may limit impressions. If your campaign is too new or low-volume, start with Maximize Conversions (no target) to build data before switching to tCPA/tROAS. - How long does the Smart Bidding learning period take?
Typically 1–2 weeks. During this time, performance may fluctuate as Google’s AI “learns” your account and patterns. Avoid major changes during learning. After enough conversions are observed, the system stabilizes, and performance usually improves. For accurate evaluation, give it at least a month and 30+ conversions as Google advises. - Can I use Smart Bidding across multiple campaigns?
Yes, via portfolio bid strategies. Instead of setting tCPA/tROAS per campaign, you can create a portfolio strategy that applies the target across several campaigns. This pools data for faster learning, which is useful for smaller local campaigns. You can still later switch campaigns to individual bidding if needed. - What should I do if Smart Bidding isn’t giving enough volume?
Check if your target is too strict or your budget too low. If you set a very low CPA or very high ROAS, Google may limit bids and your ads might show less. Gradually relax the target or increase budget. Also ensure your keywords aren’t overly restrictive – adding some broad-match keywords can help the algorithm find more auctions. Finally, confirm your conversion tracking values and campaigns are properly configured.
- How does Smart Bidding handle mobile users?
Smart Bidding factors in the device automatically. In Bangladesh, with very high mobile connectivity, the algorithm may learn that certain campaigns or times (e.g. mobile searches at evening) convert better, and bid higher accordingly. You can also set mobile bid adjustments, but often Smart Bidding already optimizes by device as one of its signals. - Can I combine Google Ads with other website monetization options?
Advertisers should use Google Ads to drive conversions, while website owners can monetize their traffic with ads (e.g. Google AdSense) or affiliate links. If you run a content site, consider placing Google AdSense ads or affiliate promotions to earn revenue from visitors. If you run a business website, focus on using Google Ads and other marketing channels (social media, email, etc.) to attract and convert users. Implevista’s experts can advise on both paid ads and other strategies to monetize and grow your online presence.
