Google's Smart Bidding Exploration Now Runs Performance Max and Shopping: Here's What Changes
Google expanded its Smart Bidding Exploration feature to Performance Max and Shopping campaigns, letting Target ROAS advertisers accept controlled return tolerance to bid on more auctions. Here's how the feature works and what it means for your spend.
The 5-second version
- Google rolled out Smart Bidding Exploration to Performance Max and Shopping campaigns, expanding beyond Search.
- Target ROAS advertisers can now accept a 5, 30% return tolerance to pursue additional eligible auctions.
- The feature requires campaign-level Target ROAS bidding and uncapped budgets to activate.
Google announced an expansion of Smart Bidding Exploration to Performance Max and Shopping campaigns as of October 2026. The feature, which previously operated only on Search, now lets advertisers running Target ROAS bidding accept a controlled return tolerance, anywhere from 5% to 30%, to compete for additional eligible auctions they would normally skip.
What Smart Bidding Exploration Actually Does
Smart Bidding Exploration is a way for Google to say: "You've set a return target. We can help you hit more auctions if you're willing to let the return dip slightly below that target for some of them." When you enable it, you're giving Google permission to bid on auctions where the expected return falls within your tolerance band, say, your target is 400% ROAS, but you'll accept 380% to 300% on some conversions if it means more total volume.
The trade-off is deliberate. By accepting a wider margin of return, you're asking Google to be bolder with your budget. In exchange, you pursue more traffic and more sales. For business owners scaling revenue, this can be the right move. For those optimizing for profit per transaction, it's not.
Requirements to Turn It On
- Campaign-level Target ROAS bidding (not portfolio-level)
- Uncapped budget (or a budget high enough that it's not the limiting factor)
- Performance Max or Shopping campaign type
The 5% to 30% Tolerance Window
Google gives you control over how aggressive you want to be. Set it to 5% and you're saying "I'll barely budge from my target return to get more volume." Set it to 30% and you're saying "I'll take significantly lower returns per sale if it means much more volume." Most advertisers sit somewhere in the middle, around 10, 15%, balancing growth and margin.
5, 30% Range of return tolerance you can accept to pursue additional auctions
Who Benefits Most
This feature is most valuable for e-commerce and DTC brands with:
- Room in their margin to absorb slightly lower ROAS on incremental sales
- Strong unit economics where volume growth compounds value
- Seasonal campaigns where reaching more auctions during peak periods matters
- Mature Performance Max or Shopping setup with enough historical data for Smart Bidding to work well
If you're already profitable at your Target ROAS and want to scale revenue faster, Smart Bidding Exploration gives Google more room to bid aggressively. If you're operating at thin margins or your Target ROAS is already conservative, the feature may not be worth enabling.
How to Decide
Start by auditing your Performance Max and Shopping campaigns. Look at your current return target and ask: "If we accepted 10, 15% lower returns, would the incremental volume justify it?" If the answer is yes, enable the feature at that tolerance level and monitor performance for 2, 4 weeks. If you see volume rise without hitting your profit floor, keep it on. If margins shrink too fast, lower the tolerance or turn it off.
Smart Bidding Exploration expands to Performance Max and Shopping campaigns, allowing Target ROAS advertisers to accept a controlled 5, 30% return tolerance to pursue additional eligible auctions.PPC News Feed, October 2026
Questions owners ask
What exactly does Smart Bidding Exploration do in Performance Max and Shopping?
It lets Google bid on additional eligible auctions beyond your normal Target ROAS threshold. Instead of stopping at your target return, you accept a controlled dip, between 5% and 30%, to capture more volume. This is useful if you believe selling more units at slightly lower margins grows your business.
Do I have to use it, or is it optional?
It's optional. You must be using campaign-level Target ROAS bidding and have uncapped budgets for the feature to appear. If you do, Google lets you choose whether to enable it and set your tolerance band.
What's the difference between the 5% and 30% tolerance range?
A 5% tolerance means you'll accept auctions where your return dips only slightly below target; 30% means you'll bid more aggressively and accept returns much further below target to win more traffic. Higher tolerance = more volume but lower margins per sale.
If I enable this, will my ad spend automatically increase?
Not necessarily. If your budget is already uncapped and performing well, you may see spend rise slightly as Google bids on additional auctions. If your budget is a constraint, the feature helps you allocate your existing spend more toward volume-generating auctions within your tolerance.
