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For high volumes of ads or ad groups, automated is almost the only way to optimize because manual would be impossible to keep up with so it may quickly underperform given the lack of constant adjustment/optimization.
For lower ad volumes, manual might be fine if a resource has the time to dedicate to monitoring, testing, and optimizing the ad groups.
One way to thread the needle might be to automate for more mature product segments that have lots of ads built up over time while using manual for newer or niche targeted products so you can really get a feel for the ebbs and flows.
Great suggestion! Thanks