Google Announces New Smart Bidding

Google’s Latest Search Update Offers More Flexibility for ROAS Bidding
Announced at Google Marketing Live 2025

Yesterday at Google Marketing Live 2025, Google announced a major update to Search bidding that’s set to empower performance marketers in a whole new way. This latest feature introduces enhanced flexibility for ROAS (Return on Ad Spend) goal bidding, giving advertisers greater control over how and where they invest their budget.

What’s New?

Previously in beta, the update is now available to all advertisers. Historically, Google’s automated bidding strategies focused on tightly optimizing for specific, low-funnel, high-intent queries—like “buy red long-lasting lipstick”—to meet strict ROAS goals.

With this new flexibility, Google continues to utilize its AI technology to so that advertisers can now expand their targeting to higher-funnel terms, potentially attracting new audiences earlier in their buying journey—even if it means a slightly higher ROAS.

“We know today’s customer journey isn’t linear,” said a Google spokesperson. “This update empowers advertisers to unlock new growth by allowing our AI to explore higher-funnel terms that still deliver meaningful returns.”

Example

Let’s say a beauty brand typically drives conversions with high-intent search terms like “long-wear red lipstick.” With the updated ROAS flexibility, the brand could now bid on broader, discovery-stage terms such as “makeup tutorials” or “best lip color for summer,” reaching potential customers earlier in the funnel — and still maintaining efficient performance.

What This Means for Marketers

This update is can help those looking to:

• Broaden audience reach

• Test new keyword strategies

• Balance immediate conversions with long-term customer acquisition

Pro Tip:

Now’s a great time to review your current ROAS bidding strategies and test higher-funnel keywords that align with your brand narrative or content strategy.