In practice
You stop setting « 2 € max per click ». You give a goal (conversions or value), and the algo adjusts the bid on every search: higher for a ready buyer at 10pm on mobile, lower for a browser on Monday morning. It reads dozens of signals per auction (device, time, audience, history) you cannot process by hand.
Why it matters
Fed with clean conversion data, the algo beats manual bidding on the vast majority of accounts. This is the foundation of Google Ads performance today.
The common mistake
Turning it on with broken tracking. The algo optimizes toward the data you send it: if that data is wrong, it optimizes on the wrong basis. Check your tracking before, not after.
Related conceptsTarget CPA (tCPA)Target ROAS (tROAS)Server-side trackingMachine Learning



