Skip to content
Home » Digital Marketing News » Why You Should Never Use Conversion-Based Bidding for Your Brand Campaigns in Google Ads

Why You Should Never Use Conversion-Based Bidding for Your Brand Campaigns in Google Ads

If you’ve ever felt like Google Ads was secretly out to milk your budget dry, you’re not alone. Conversion-based bidding strategies, like Max Conversions and Target CPA, are often touted as the holy grail of ad performance. And to be fair, I use these strategies on most of my non-branded search campaigns, and they’re great. But not all keywords are created equal. After a deep dive into my client campaigns, I’ve discovered that when it comes to brand campaigns, these automated strategies aren’t just flawed — they’re borderline exploitative.

With regular non-branded keywords, you’re competing with a bunch of other advertisers, and they may not even generate much value anyway. They tend to have a lot of volume, so letting AI decide which users are best to show your ads to is effective. When it comes to brand keywords, there tend to be few other advertisers bidding on them, and you should have 10/10 quality score, meaning you don’t need to bid aggressively to be the top result.

So why does Google end up bidding super-aggressively on your brand keywords and paying way over the odds for those keywords? Well, clearly it makes Google more money while leaving you with inflated costs-per-click (CPC) and higher CPAs. And yes, I have the receipts.


The Case for Manual CPC Bidding – Putting it to the Test

A few months ago, I started to question the performance of my clients’ brand campaigns. I had been using Google’s much-hyped Max Conversions and Target CPA strategies, across most campaigns, but I noticed one troubling trend: CPCs were rising, and CPAs weren’t where they should be. For most clients, brand CPCs should never be much above $1-$2, and CPA should be way lower than non-branded terms.

So, I decided to take it old school: I switched these campaigns to manual bidding. No fancy algorithms, no AI-powered promises — just good old-fashioned CPC management.

The results? Game-changing. Across several brand campaigns, the CPA plummeted. Why? Because my CPC was significantly lower. By manually controlling bids, I wasn’t overpaying for clicks that were already low-risk to convert. Instead of Google deciding how much I should spend, I decided how much I was willing to spend. Spoiler: it was a lot less.


The Head-to-Head Test: Manual Bidding vs. Max Conversions

To make sure this wasn’t a fluke, I set up a direct A/B test. I ran two identical brand campaigns: one with manual bidding and the other using Max Conversions. Both had the same budgets, ad creatives, and targeting. The only difference? The bid strategy.

Here’s what went down:

  • Conversions: Both campaigns generated a similar number of conversions. No major disparity there.
  • CPC: The Max Conversions campaign had a CPC that was more than double that of the manual bidding campaign.
  • CPA: Unsurprisingly, the inflated CPC in the Max Conversions campaign led to a significantly higher CPA. Meanwhile, the manual bidding campaign kept costs lean without sacrificing volume.

This wasn’t an isolated incident either. Across multiple clients and industries, I’ve consistently found that manual bidding crushes conversion-based strategies when it comes to brand campaigns. The reason? Brand campaigns typically target high-intent traffic, so Google’s automated bidding’s “smart” optimizations don’t really add value. Instead, they just inflate costs.


The Grim Future of Manual Bidding

Unfortunately, this golden era of manual bidding may be coming to an end. Google has been hinting at phasing out manual CPC bidding entirely, leaving advertisers with only Maximize Clicks (with a CPC limit) as the closest alternative. And while Maximize Clicks can work with tight CPC caps, you still have to rely on the algorithm showing your ads to the right people.

This move isn’t surprising. Google’s ultimate goal is to push advertisers toward full automation, where their algorithms can prioritize their bottom line over yours. It’s a strategy that’s great for Google’s shareholders but disastrous for advertisers trying to run efficient, cost-effective campaigns.


The Takeaway: Don’t Buy the Hype

Conversion-based bidding strategies might sound like a no-brainer, but when it comes to brand campaigns, they’re a trap. These campaigns don’t need the heavy lifting of automated bidding; they need the precision and cost control that only manual bidding can offer.

If you’re running brand campaigns, do yourself a favor: ditch the Max Conversions and Target CPA strategies and go manual. Your wallet will thank you. And if Google does pull the plug on manual bidding? Get ready to adapt, because the fight for efficient ad spend is only just beginning.

Leave a Reply

Your email address will not be published. Required fields are marked *