Smart Bidding Exploration for Performance Max and Shopping: Should You Turn It On?

What It Is

Smart Bidding Exploration started in Search campaigns. It's now available for Performance Max and Shopping campaigns using Target ROAS.

In plain English: it lets Google bid on searches it would normally skip, because it predicts they could bring in new customers. In exchange, you accept that your ROAS may dip slightly while it explores.

You don't change your products, feeds or targeting. You set a ROAS tolerance, and Google is allowed to work within that range.

Why Google Built It

Target ROAS campaigns can get stuck. Over time, they focus on searches and customers they already know will convert. That keeps ROAS steady but stops growth, because the campaign never tries anything new.

Exploration is designed to break that loop by finding searches your campaign is currently too cautious to bid on.

How It Works

Your campaign must use Target ROAS - It doesn't work with Maximise Conversion Value without a target.

It shouldn't be limited by budget - If budget is already capped, there's no room to explore.

You set a tolerance - Google suggests starting with 10%. If your target ROAS is 500%, Google may bid as if your target were closer to 450% on exploration traffic.

You can monitor it - The bid strategy report shows your effective ROAS target and how much traffic came from exploration.

Who Should Try It

Good fit

Ecommerce brands that have plateaued - ROAS is stable but revenue isn't growing.

Businesses with healthy margins - A 10% ROAS dip doesn't wipe out profit.

Accounts with good data - Plenty of conversions and accurate conversion values.

Businesses focused on new customers - Especially if you also use new customer acquisition goals.

Poor fit

Tight margins - If you only just break even, exploration can push you into a loss.

Budget-limited campaigns - It won't have anywhere to go.

Poor tracking - If conversion values are wrong, exploration optimises for the wrong things. Our conversion tracking guide covers the fundamentals.

Seasonal peaks - Don't start testing during Black Friday or Christmas, when data is skewed anyway.

How We Test It

1. Work out your break-even ROAS

Before setting any tolerance, know your break-even point. If you need 300% ROAS to break even and your target is 500%, a 10% tolerance (around 450%) leaves plenty of room. If your target is 320%, it doesn't.

2. Start with one campaign

Pick a campaign that is stable, not budget-limited and has at least 50 conversions a month.

3. Use a 10% tolerance

Stick with Google's suggested starting point.

4. Run it for four to six weeks

Exploration needs time. A week of data tells you very little.

5. Judge it on new customers and total profit

The question isn't whether ROAS dropped. It will, a little. The question is whether total profit and new customer volume went up.

A Note on Timing

With Black Friday and Christmas close, now isn't the ideal time to start testing for most retailers. Our advice is to plan a test for January, when traffic settles and you have a clean baseline.

The Bottom Line

Smart Bidding Exploration is a sensible tool for ecommerce businesses whose growth has stalled. It isn't a quick win, and it isn't for everyone. Used carefully, on the right campaign, it can find customers your current setup is ignoring.

Want help planning a test? Get in touch and we'll look at whether your account is ready.