AI Bid Optimization

AI bid optimization means using machine learning and artificial intelligence to automatically adjust ad bids in real time. Instead of a human manually setting and adjusting bid levels, AI analyzes hundreds of signals per auction, including device, location, time of day, search history, and conversion probability, to set the optimal bid.

How does AI bid optimization work?

In platforms like Google Ads, bidding occurs for each individual search auction. Google's Smart Bidding is a form of AI bid optimization that adjusts bids based on real-time signals. External AI bid optimization, such as that offered through platforms like Cogny, adds an extra analysis layer on top of Google's own AI and optimizes for your goals rather than Google's.

Why is Google's built-in AI not enough?

Google's AI optimizes to maximize conversions within your budget. But it does not account for your overall business strategy, lifetime value per customer segment, or cross-channel impact. External AI bid optimization can include these factors and drive better ROAS over time.

Read more about how AI improves Google Ads in our article on AI-driven Google Ads optimization.