When to Start Using Smart Bidding Exploration (and When Not To)

Smart Bidding in Google Ads has evolved dramatically with the introduction of Smart Bidding Exploration an AI-powered feature designed to expand performance beyond traditional ROAS or CPA limits. But as experienced marketers know, automation is only powerful when implemented under the right conditions. This review breaks down exactly when to start using Smart Bidding Exploration in Search and Performance Max campaigns and when to hold back.

TL;DR: When to Use Smart Bidding Exploration (and When Not To)

 

Use Smart Bidding Exploration when:

• You have stable conversion tracking and at least 30–50 conversions/month.
• Campaigns are mature, well-optimized, and not budget-limited.
• You’re hitting CPA/ROAS goals and want to scale further.
• You're open to slightly lower efficiency in exchange for more volume.
• You have monitoring in place and trust Google's AI to find new high-potential queries.

 

Avoid Smart Bidding Exploration when:

• Conversion volume is too low or tracking is inaccurate.
• Your campaign is new, budget-constrained, or underperforming.
• You can’t afford a drop in ROAS or increase in CPA.
• Conversion values are missing, incorrect, or mixed without clear intent.
• You’re using PMax without enough signal or volume to guide the algorithm.

 

What Is Smart Bidding Exploration?

Smart Bidding Exploration (SBE) allows Google’s bidding algorithm to loosen strict efficiency targets (like tROAS or tCPA) to test new search queries that may convert well but fall outside current bidding constraints. It does not alter your keyword targeting or campaign settings. Instead, it relaxes the ROAS thresholds slightly to explore more expansive traffic and conversion opportunities, with the goal of unlocking additional volume and long-term value.

Think of it as giving the algorithm “permission to explore” you sacrifice a small amount of efficiency in exchange for potentially higher overall conversion volume or revenue.

 

When to Start Using Smart Bidding Exploration

1. You Have Sufficient Conversion Volume

Before adopting Smart Bidding or SBE, your campaigns should have a solid history of conversions. Ideally, you should have at least 30 conversions per month for tCPA, and 50+ for tROAS. For Performance Max, 20–30 conversions monthly is typically the threshold for dependable learning. Low conversion volumes mean poor predictive accuracy and high performance volatility.

 

2. Conversion Tracking Is Accurate and Stable

Your success with Smart Bidding depends on clean, reliable data. That means proper tagging, no duplicate conversions, and clearly defined primary goals. Inaccurate or unstable tracking confuses the algorithm and leads to wasted spend.

3. Campaigns Are Mature and Well-Optimized

Avoid enabling SBE immediately after launching a campaign. Let your campaign stabilize with manual or Maximize Conversions bidding. Once performance data accumulates and you understand CPA or ROAS benchmarks, then transition into Smart Bidding or SBE.

4. You’re Maxing Out Current Demand

Smart Bidding Exploration works best when your campaign is already capturing most available conversions at your current target efficiency. If impression share is high and you're not budget-limited, but you want to grow more, SBE can help break through that plateau by uncovering new query opportunities.

5. You’re Willing to Trade Some Efficiency for Volume

This is crucial: SBE may slightly reduce your ROAS or increase CPA in exchange for more conversions. You should only use it if your margins or goals allow for this. If you’re strictly capped on CPA or ROAS, SBE isn’t the right fit.

6. You Have Budget Flexibility and a Scaling Mindset

SBE typically works when you're not budget-capped. You must be prepared to increase spend if the algorithm finds worthwhile new conversion opportunities. If you're operating on tight daily budgets, SBE may have limited impact or introduce inefficiency.

7. You Trust the Algorithm and Have Monitoring in Place

You need visibility into performance trends, the ability to assess search terms (where possible), and a process to evaluate if new traffic from exploration aligns with business goals. SBE is not fire-and-forget it requires oversight.

 

When Not to Use Smart Bidding Exploration

1. Low Conversion Volume or Sparse Data

If your campaigns generate fewer than 15–30 conversions per month, Smart Bidding especially with Exploration can become erratic or ineffective. The algorithm has no base to learn from. Instead, use Maximize Conversions or manual CPC until volume improves.

2. Campaigns Are Budget-Limited

If your campaigns are losing impression share due to budget, your first step should be to resolve the limitation, not to enable SBE. Exploration requires room to grow. Budget-constrained campaigns cannot meaningfully test new auctions.

3. You're Operating with Strict Efficiency Requirements

If you cannot afford any increase in CPA or decrease in ROAS, SBE will likely conflict with your business objectives. By design, SBE trades some efficiency for reach if you can’t afford the trade, don’t use it.

4. Conversion Values Are Missing or Misaligned

Avoid using tROAS or any value-based bidding strategy (including Smart Bidding Exploration)f you don’t have reliable conversion value data. For lead generation, use tCPA or Maximize Conversions instead. If multiple conversion types are counted together without value differentiation, Smart Bidding may optimize for the wrong actions.

5. Campaigns Are New or Underperforming

If a campaign is still in its infancy or struggling to meet basic performance thresholds, adding SBE will likely amplify existing issues. Get the fundamentals right keywords, ads, landing pages, and tracking before layering on automation.

6. PMax Campaigns Without Clear Signals

Performance Max requires strong signals. Launching with SBE-like strategies too early in a PMax campaign can cause inefficient exploration or poor budget allocation. Begin with Maximize Conversion Value or Maximize Conversions, and only introduce tROAS or exploration later.

 

Final Thoughts

Smart Bidding Exploration offers a sophisticated way to break through performance ceilings but only if your foundation is ready. Use it when your campaigns are mature, well-optimized, and you’re hitting your current efficiency goals with room to scale. Avoid it when data is thin, budget is constrained, or your business model demands strict efficiency.

As an experienced Google Ads marketer, your role is to know when the algorithm will amplify your success and when it might magnify your problems. Approach Smart Bidding Exploration with strategic intent, and it can become one of the most powerful growth levers in your toolkit.