What Is Smart Bidding in 2026?
Smart bidding is Google's suite of automated bid strategies that uses machine learning to optimize for conversions or conversion value at auction time. In 2026, the landscape has shifted significantly: AI Max for Search has emerged as the dominant new feature, call-only ads were deprecated in February 2026, and Smart Bidding Exploration has been introduced as a way to find new customers at the cost of short-term ROAS efficiency.
The Core Smart Bidding Strategies
1. Target CPA (Cost Per Acquisition)
Target CPA sets bids to get as many conversions as possible at or below your target cost-per-acquisition. It remains the go-to strategy for lead generation campaigns with consistent conversion values. Minimum requirement: 30+ conversions per month. Start with a target CPA 20-30% above your actual historical CPA to give the algorithm room to learn.
2. Target ROAS (Return on Ad Spend)
Target ROAS is ideal for e-commerce accounts where conversion values vary. The algorithm optimizes for revenue, not just volume. Requires at least 50 conversions per month for reliable performance. In 2026, this pairs well with Performance Max campaigns, which now drive approximately 45% of Google Ads conversions.
3. Maximize Conversions
Best for campaigns with limited historical data or when you want to spend a fixed budget efficiently. Use this as a stepping stone before switching to Target CPA once you have sufficient conversion data.
4. Smart Bidding Exploration (New in 2025-2026)
This new setting allows you to accept a lower ROAS in exchange for the algorithm finding new customer segments. According to Google, accounts using Smart Bidding Exploration see on average an 18% increase in unique search query categories with conversions and a 19% increase in overall conversion volume. It is best suited to accounts that have already maximized their existing audience and want to expand reach.
AI Max for Search: The 2026 Game-Changer
AI Max is not a bidding strategy per se, but it works hand-in-hand with smart bidding. It combines broader search term matching, dynamic text customization, final URL expansion, and controls for brand exclusions, location targeting, and URL restrictions. AI Max is best suited to accounts with solid conversion tracking, strong landing pages, and clear exclusion lists. Accounts still struggling with basic measurement should not adopt it yet - the system needs reliable feedback signals to perform well.
When to Use Manual CPC in 2026
Manual CPC bidding is not obsolete. It remains the right choice for brand campaigns with extremely high conversion rates, compliance-sensitive industries where ad copy must be tightly controlled, and new accounts with fewer than 30 conversions per month. The key principle: smart bidding earns its autonomy through data. Until your account has sufficient signal, manual control protects your budget.
Migration from Call-Only Ads
Call-only ads were deprecated by Google in February 2026. If you were running call-only campaigns, you must migrate to Responsive Search Ads (RSAs) with call assets attached. RSAs with call assets deliver the same phone call functionality with the added benefit of text-based ad serving, giving you more auction eligibility and better Quality Scores.
The Bottom Line
In 2026, the most effective Google Ads accounts are not those that blindly adopt every automated feature - they are the ones that match the right bidding strategy to the right campaign maturity. Start with sufficient conversion data, choose the strategy that aligns with your business goal, and layer in AI Max and Smart Bidding Exploration only when your account foundation is solid.