The status of the AdWords auction strategy indicates whether the automatic bid strategies for AdWords campaigns are active or not. The status of the AdWords auction strategy also highlights the reasons why bids are limited.
PS: The bid strategy status applies only to advertisers who use AdWords automated bidding.
In this article, I explained different statuses of the AdWords auction strategy and their meaning.
Different status of AdWords auction strategy
Inactive: Inactive bidding strategies are not dormant. There may be some reasons why bid strategies become inactive.
If no campaign, ad group, or keyword uses an auction strategy, it becomes inactive.
AdWords replaces the status of the bid strategy with inactive if you pause ad groups and keywords associated with the bid strategy.
If you spend money, an auction strategy may become inactive.
Active: If the status is active, you have nothing to do. Active bid strategies optimize your bids for performance.
Learning: AdWords is constantly learning. It understands the performance of your campaign and suggests improvements. The state of learning indicates that AdWords collects performance data that it uses to optimize bids. When you hover over the "bubble" next to status, you'll find why AdWords learns this strategy. The reasons could be:
The strategy is new.
You changed the budget.
You have changed the settings such as the conversion parameter or the conversion action parameter.
The campaigns, ad groups, or keywords associated with the bid strategy are changed.
It is best not to change strategy often. AdWords takes time to learn each time you make changes. And the data during the learning period are not accurate. Please wait until the end to use the data to measure the performance.
Limited: Auction strategies have limited / limited performance for several reasons.
Keyword bids are either above the maximum bid limit or below the minimum bid limit.
Missing conversion data or very little data to optimize AdWords
Automatic / manual bidding uses the shared bid budget.
Multiple campaigns using an auction strategy are limited by budget (daily budget below minimum).
Low quality keywords result in a low number of impressions that are not sufficient to meet the goals of the bid strategy.
Misconfigured: Different automated and conversational bidding strategies, such as Target Cost Per Acquisition (CPA), ROAS, Optimization conversions or cost optimization. Click (ECPC) to use historical conversion data to optimize bid performance. If conversion tracking and conversion actions do not work correctly, automatic bid strategies will not work correctly.
Learn how the conversion setting can limit the performance of the bid strategy and how to correct the settings.