Ask What is the impact of bid cap settings on smart bidding performance in Google Ads?

[Newman]

Bid caps can be useful for controlling costs, but they can also hold a campaign back if they are too restrictive. Smart bidding works by adjusting bids based on the chance of getting a conversion, so limiting how high it can bid may stop it from competing in valuable searches. A lot of advertisers focus so much on keeping bids low that they miss opportunities that could have brought better results. Finding the right balance is usually more important than choosing the lowest possible bid. Can strict cost control sometimes end up reducing growth opportunities?