Google's Smart Bidding optimizes bids automatically. Everyone has access to the same bidding algorithms.
Creative is the last true competitive advantage in PPC.
Two advertisers bidding on the same keyword, same audience, same time of day:
Advertiser A:
Generic headline: "Project Management Software"
CTR: 2.1%
CVR: 3.5%
CPA: $85
Advertiser B:
Specific headline: "Used by 40,000+ Engineering Teams"
CTR: 6.8% (3.2x higher)
CVR: 7.2% (2x higher)
CPA: $21 (4x better)
Same bid, same audience, same keyword. The difference is entirely creative.
Google rewards high CTR with higher Quality Score, which means lower CPCs. Better creative literally makes your clicks cheaper.
The Creative Lab gives you the tools to systematically engineer Advertiser B's results instead of hoping for them.