How Value-Based Bidding Can Improve your Google Ads Performance
There seems to be a mindset shift underway in Google Ads right now when it comes to smart bidding strategies. We care about all of the conversions that we’re tracking, but we don’t always value each of them equally. Now, there are bid strategies available that address that nuance and allow us to get granular, and optimize towards what we care about most. The result? You can drive more of your highest-value conversions or optimize directly towards revenue growth.
How It Works
Depending on your business goals, your advertising campaigns may have several different conversion actions. You may receive phone calls, webpage visits, form fills, or requests for information – and all of these could count as a conversion. However, depending on your goals, some of these conversions may have a higher value to your business. For example, potential customers who call or fill out a form may be more likely to book services than those who visit a certain page on your website or request information. Setting conversion values allows you to rank your different conversion actions, so you can target the best conversions to reach your goals. Here are some of the benefits of assigning conversion values in your Google Ads campaigns:
Track Your Returns
Conversion values help you accurately track your return on investment. They allow you to identify how much revenue or growth a specific type of conversion is bringing your business. This in turn allows you to make informed decisions on your budget or strategy to target the most valuable conversions for your business. The Target ROAS bid strategy is also available for e-commerce accounts if you have actual revenue data. This allows you to directly optimize your campaigns towards revenue growth, not just conversions.
Adjust Your Strategy
You can gain greater insight into which ad groups, keywords, and ads generate your highest value conversions. Different strategies target different kinds of customers and conversions. Instead of just trying to get more conversions out of each piece of the campaign, we can drill deeper and know what is truly driving value. It’s a mindset shift away from simply looking at cost per conversion, CPA, or Cost Per Lead. But at the end of the day, it can help your business grow.
Improve Smart Bidding
Conversion values can help improve the performance of Smart Bidding strategies. Smart bidding strategies take the guesswork out of setting and adjusting bids. However, they still require human oversight to ensure the conversions coming in have the greatest return for your business. Adding values for your conversions gives Google Ads more information about the various things you are optimizing towards, so the bid strategy can perform more effectively.
Google Ads is constantly updating its platform to be more efficient and provide more value to your business. Conversion Values and value-based bidding are one of the latest tools in our toolbox and are worth a look to see if they make sense for your account. Assigning values to your conversion can help you target the areas of your digital marketing campaigns that best serve your revenue and growth goals.
If you think conversion values could help grow your digital marketing campaigns, we can help! At Chair 10 Marketing, our team is made up of experts that know how to maximize results on Google Ads. We can help you determine which bid strategy makes sense for your goals. Contact us today for a free consultation with one of our experts!