Created to provide a simple solution for businesses with limited time to manage campaigns, Smart Mode is automated and works to a goal as set by the user. As well as a goal, advertisers have some limited targeting options, such as geographic location, but advertisers can’t select specific channels that they want their ads to appear on.
Due to its simplicity, Google has made Smart Mode the default option when setting up a new campaign on Google Ads. The only way to revert back to manual management is to change your settings once the campaign has been made.
Unlike manual campaigns, advertisers can’t set a maximum keyword bid limit with Smart Mode, meaning users could pay a higher CPC for their campaigns. Google’s Smart Mode also primarily focuses on top-performing products, leaving the rest of your catalogue with less attention. The automation done by Google is also not done at the individual SKU level, meaning you could be missing out on optimisation opportunities.