In Pay-Per-Click (PPC) advertising, bidding is the backbone of your campaign performance. Your bid determines how much you’re willing to pay for a click, which directly influences ad visibility, placement, and cost efficiency. Traditionally, advertisers relied heavily on manual bidding, giving them complete control over bids for keywords or ad groups. However, with the rise of AI and machine learning, platforms like Google Ads and Microsoft Ads now offer automated bidding strategies that use data signals in real-time to maximize results.
The big question is: When should you let automation take over, and when should you keep control in your hands?
Let’s explore in detail.
Understanding the Two Approaches
1. Manual Bidding
- You control the maximum CPC (Cost-per-Click) for each keyword or ad group.
- Gives complete transparency and flexibility.
- Requires constant monitoring, adjustments, and analysis.
2. Automated Bidding
- AI-powered algorithms adjust bids in real-time.
- Factors like device type, location, time of day, and past behavior are analyzed instantly.
- The system optimizes toward specific goals (conversions, clicks, impressions, etc.).
When to Use Automated Bidding
Automated bidding shines under specific conditions. Here are the main situations where it’s the better choice:
1. When You Have Conversion Data to Train the Algorithm
Automated strategies rely on historical data. If your campaigns already generate enough conversions, the algorithm can learn patterns and optimize bids more effectively than manual adjustments.
- Best for: Established campaigns with measurable conversion goals (sales, leads, sign-ups).
- Example strategies: Target CPA (Cost per Acquisition), Target ROAS (Return on Ad Spend).
2. When Campaigns Are Too Large to Manage Manually
If you’re running thousands of keywords across multiple campaigns, manual bidding becomes overwhelming. Automated bidding can analyze millions of data points in real-time—something humans simply cannot do efficiently.
- Best for: Large accounts with diverse keyword sets.
- Benefit: Saves time while ensuring competitiveness across all auctions.
3. When Real-Time Adjustments Are Crucial
Markets shift constantly. For instance, device usage varies during the day, and competitor bids fluctuate. Automated bidding adjusts instantly, whereas manual bidding lags behind.
- Best for: Highly competitive industries where timing and speed matter.
- Benefit: Maximizes impressions and clicks at the right time.
4. When You Have Specific Business Goals
If your priority is maximizing conversions, improving ROI, or increasing visibility, automated bidding is ideal. Each strategy is goal-oriented and aligns with KPIs.
- Example:
- Maximize Conversions → Best for lead gen and eCommerce.
- Target ROAS → Best for businesses with strong revenue tracking.
- Target Impression Share → Best for branding campaigns.
5. When Testing New Markets or Audiences
Automated bidding helps you quickly identify what works and what doesn’t when you enter a new region or target demographic. The algorithm can optimize faster than manual guesswork.
- Best for: Expansion campaigns.
- Benefit: Faster learning curve with minimized wasted spend.
6. When You Want to Save Time and Focus on Strategy
Manual bidding is time-consuming. If your team is small or you want to focus on strategic growth (like ad copy, landing pages, or audience targeting), automation handles bidding while you work on higher-level optimizations.
- Best for: Small teams with limited time.
When Manual Bidding Is Still Better
Automation isn’t perfect. Manual bidding still works well in certain scenarios:
- New Campaigns Without Enough Data
- Automated bidding needs historical data. Without it, the algorithm may mismanage your budget.
- Manual bidding lets you guide performance during the learning phase.
- Low-Budget Campaigns
- If your daily budget is very small, automation might overspend chasing conversions.
- Manual bidding allows stricter control over costs.
- Niche Keywords or High-Value Clicks
- In industries where one click could cost hundreds of dollars (legal, medical, etc.), you may not want AI deciding your bids.
- Testing or Experimenting
- If you’re testing specific keywords, ad placements, or bids, manual control allows precision.
How to Transition to Automated Bidding
If you’re currently using manual bidding but considering automation, here’s a smooth approach:
- Start with Hybrid Control
- Use Enhanced CPC (ECPC) first. It combines manual bidding with AI adjustments.
- Choose the Right Strategy for Your Goal
- Awareness → Target Impression Share.
- Traffic → Maximize Clicks.
- Conversions → Maximize Conversions or Target CPA.
- Revenue → Target ROAS.
- Give It Time
- Automated strategies need a “learning period” (1–2 weeks). Don’t judge too early.
- Monitor Closely
- Even with automation, monitor performance and set bid limits to prevent overspending.
The Bottom Line
Automated bidding is not about giving up control—it’s about making smarter use of your resources.
- Use automated bidding when you have enough data, clear goals, and want real-time optimization at scale.
- Stick with manual bidding for smaller campaigns, tight budgets, and situations where precision outweighs speed.
The smartest advertisers often combine both approaches: start manually, gather data, then switch to automation once campaigns mature.
✨ In short:
Choose automated bidding when scale, data, and efficiency matter most. Use manual bidding when control, precision, and testing are priorities.