In the nearest future, expect fully automated ad setup. That is, the targeting functions in Google Ads will be replaced by clear strategies that, thanks to artificial intelligence, will automatically select to whom and where to show launched advertisements.
Maximum number of clicks: you, as an advertiser, specify a budget, and the system tries to get the maximum number of clicks for that amount. This format is not considered smart because it does not use complex algorithms for the prediction of conversions.
Target displays percentage: the system manages bids to get desired displays’ percentage.
Optimized CPC: in this case, use a manual bid management strategy but with an optimizer. With a high probability of conversions, the bid will increase, with a low probability, it will decrease to almost zero.
Maximum conversions: you specify a budget, and the system generates the maximum number of conversions in response. With such settings, Google will not go beyond the budget.
Cost per conversion: write a budget and a cost per conversion. Google will focus on the specified price, and in some cases the system will offer to increase the budget to get more conversions.
Maximum conversion value: you specify the value of received conversion. At the same time, the system primarily focuses on the budget and tries to squeeze the maximum out of it.
Return on ad spend: here, similarly to the previous format, you indicate the value of the conversion. In this case, the algorithm is primarily focused on set ROAS (profitability), and secondly on the budget.
Google Recommendation: set a daily budget of ten CPA. With a smaller daily budget, the system will make incorrect steps.
These parameters can be changed in the CPA or ROAS strategies.
In the work of smart strategies, the definition of conversion plays a big role. You control what action you put under the conversion. Strategies with such conversions, which are repeated often, work much better.
Google Ads recently launched a report. There you can view the state of the algorithm: whether it has already passed the training period, or whether it has noted the important nuances of your ad.