# How to Create Self-Optimising Ad Campaigns
In the past, managing a successful digital advertising campaign required hours of manual bidding and constant keyword adjustments. Today, Australian small businesses can leverage machine learning to create "self-optimising" campaigns that learn from user behaviour and automatically improve their performance to get you the best possible return on investment (ROI).
By setting up your campaigns correctly from the start, you allow Google’s algorithms to do the heavy lifting—finding the right customers at the right time while you focus on running your business.
Prerequisites
Before you begin, ensure you have the following:- An active Google Ads account.
- A functional website with a clear contact form or shopfront.
- Google Tag Manager or the Google Tag installed on your site.
- At least 15-30 days of historical data is helpful, but not strictly required for new accounts.
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Step 1: Define Your Conversion Actions
A self-optimising campaign is only as good as the data you feed it. You must tell Google exactly what a "win" looks like for your Brisbane business. What you should see: Navigate to Goals > Conversions > Summary. Click the plus button to add a new conversion action.Choose the most valuable action, such as a "Lead Form Submission" or a "Phone Call Click." Ensure you assign a dollar value to these conversions if possible, as this helps the algorithm understand the relative importance of different leads.
Step 2: Install the Google Tag Correcty
For the campaign to optimise, it needs to see what happens after someone clicks your ad. Use the Google Tag (formerly Global Site Tag) or Google Tag Manager to track successful conversions.Pro Tip: If you are an Australian service provider (like a plumber or lawyer), ensure you track "Phone Number Clicks" for mobile users, as these often represent high-intent leads that form-fills might miss.
Step 3: Choose the Right Campaign Type
For maximum automation, select Performance Max (PMax) or a Search Campaign with Smart Bidding. Performance Max is currently the gold standard for self-optimisation as it serves ads across Search, YouTube, Display, and Maps using a single budget.Step 4: Set a Realistic Daily Budget
Machine learning requires a "learning phase." If your budget is too low, the system won't gather enough data to optimise. A good rule of thumb is to set a daily budget at least 5-10 times your expected cost-per-acquisition (CPA).Step 5: Implement Smart Bidding
This is the engine of a self-optimising campaign. Instead of "Manual CPC," select one of the following:- Maximise Conversions: Best for getting the most leads within your budget.
- Target CPA (tCPA): Best if you know exactly how much you can afford to pay for a lead.
- Target ROAS (tROAS): Best for e-commerce stores looking for a specific return on ad spend.
Step 6: Use Broad Match with Smart Bidding
In the old days, "Broad Match" keywords were a recipe for wasting money. However, in a self-optimising setup, Broad Match allows Google to look at user intent, location, and past behaviour rather than just the specific words typed. Screenshot Description: In the Keywords tab, you will see a toggle or drop-down next to your keywords. Change them from "Phrase" or "Exact" to "Broad," but only if you have Smart Bidding enabled.Step 7: Build "Asset Groups" with Variety
Self-optimising ads (Responsive Search Ads) work by mixing and matching different headlines and descriptions to see which combination performs best.- Write 5-15 headlines.
- Write 4 descriptions.
- Upload high-quality images and videos.
Google will automatically rotate these, eventually showing the highest-converting combinations more frequently.
Step 8: Add Audience Signals
While the AI finds new customers, you can speed up the process by giving it a starting point. Add "Audience Signals" by uploading your existing customer email list or selecting interests related to your industry (e.g., "Home Improvement Lovers" or "Small Business Owners").Step 9: Set Up Negative Keyword Lists
Even self-optimising campaigns need guardrails. Create a negative keyword list to prevent your ads from showing for irrelevant searches like "jobs," "free," or "courses" (unless you are a recruitment or training company). This ensures your budget is reserved for high-intent buyers.Step 10: Enable Final URL Expansion
This feature allows Google to find new landing pages on your website that match a user’s search query better than the one you manually picked. It’s a powerful way to capture "long-tail" search traffic you might have missed.Step 11: The "Hands-Off" Learning Period
Once the campaign is live, do not touch it for 7 to 14 days. This is the most common mistake. Every time you make a major change, the algorithm resets its learning phase. What you should see: In the status column of your campaign, it will likely say "Learning." This is normal. Let the Australian market interact with your ads so the data can accumulate.Step 12: Review the "Combinations" Report
After two weeks, go to your Asset Group and click View Details. Google will show you which headlines and images are performing best. Replace the "Low" performing assets with new variations to continue the optimisation cycle.---
Common Mistakes to Avoid
- Changing Budgets Constantly: Increasing or decreasing your budget by more than 20% at a time can kick the campaign back into the learning phase.
- Ignoring Local Settings: Ensure your location targeting is set to "Presence" rather than "Presence or Interest" if you only serve customers physically located in Brisbane or specific Australian postcodes.
- Poor Landing Page Experience: AI can send people to your site, but it can't make them buy if your website is slow or confusing.
Troubleshooting
- My ads aren't spending: Check if your Target CPA is set too low. If Google thinks it can't get a lead for that price, it simply won't show your ads. Try increasing your tCPA or switching to "Maximise Conversions."
- Traffic is high but conversions are low: Check your "Search Terms" report. You may need to add more negative keywords to filter out "window shoppers."
- The campaign is stuck in 'Learning': This usually happens if there isn't enough conversion data. Ensure your tracking is working correctly and consider broadening your audience.
Next Steps
- Audit your tracking: Ensure your ABN and business details are verified in Google Ads to avoid account pauses.
- Monitor weekly: Set a calendar reminder to check your "Asset Performance" every Friday.
- Scale up: Once your CPA is stable and profitable, increase your budget by 10-15% every twond week to grow your reach.
Need a hand getting your self-optimising campaigns off the ground? The team at Local Marketing Group specialises in helping Queensland businesses master Google Ads. Contact us today for a strategy session.