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Smart Bidding (aka Automated Bidding Algorithms) is touted as an intelligent way to help manage bids on ad accounts. It is purported to work better than human bidding, save tremendous time, and achieve greater financial results. Machine learning will save us from a life of drudgery and thinking for ourselves!

But there are tremendous downsides to using Smart Bidding algorithms when you use them in the wrong situation or don’t understand what they are really optimizing for. They all have strong biases that you need to understand. In this article, we're going to dive into the main smart bidding methods, and look at where they fall short, to help you avoid making mistakes that will drive up your costs and reduce profit.

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