What is Maximize Conversion Value Bidding?
Maximize conversion value bidding is an automated bidding strategy in Google Ads that helps you get the highest value conversions within the set budget. Unlike the maximize conversion strategy, which provides conversions, the maximize conversion value bidding works on increasing the value of the conversions, ensuring that the businesses get the maximum return on investment. This strategy focuses on quality rather than quantity. So, the maximize conversion value bidding works best for businesses focused on maximizing their return on investment rather than just increasing conversions.
How does maximizing conversion value bidding work?
The maximize conversion value bidding strategy works by using Google’s algorithm to predict the value each conversion brings and provides the highest return. Similar to the maximize conversion bidding, the maximum conversion value bidding also uses a machine learning algorithm to analyze signals such as device, time of the day, user location, browsing behavior, or previous conversion data. But it adjusts the bids in real-time, which helps in getting conversions that are of greater value for your campaign rather than just increasing the number of conversions on the ad. These valuable conversions are brought in a budget that is set by the advertisers in the beginning.
Benefits of maximizing conversion value
- Increased return on investment
The maximize conversion value bidding focuses on driving value-based conversions rather than the volume of conversions.
- Saves time
The maximize conversion value bidding is an automated bidding strategy that adjusts bids automatically without the need for adjusting them manually which saves time that can be invested in other aspects of marketing.
- Data-driven decisions
The maximize conversion value strategy analyzes a vast amount of previous conversion data to make an informed decision for bid adjustments that could be beyond human capabilities.
- Optimal use of budget
This strategy ensures that the budget set for bidding is utilized optimally to achieve maximum conversion values for the campaign without the risk of underspending or overspending the budget.
- Adaptability to market changes
The strategy is flexible enough and adapts itself automatically to the changing campaign performance, user behavior, and market conditions.
Best practices for maximizing conversion value bidding
- Set realistic values
Ensure that each type of conversion has a realistic value based on their contribution to your business, which may vary in each campaign type. For example, for e-commerce websites, the actual purchase amount may be considered, whereas for leads, the average revenue per lead is considered.
- Correctly set up the tracking data.
Since the maximum conversion value uses previous data to adjust the bids on the ads, correctly setting the conversion tracking is crucial. Ensure that you have enough data to support machine learning for analysis.
- Regular monitoring
Regularly monitor the Google Ads campaigns to ensure that they are performing optimally by analyzing the return on investment, and conversion value to ensure that your goals are achieved and adjust accordingly.
- Segment your campaigns
Another great practice is segmenting your campaigns by product or service to allocate the budget to the campaign that provides the most valuable conversion.
Implementing the right strategy that aligns with your business goals is crucial for effective digital marketing. The maximize conversion value bidding is e best implemented if your business goal is to improve the monetary value of the conversions rather than the volume of conversions.
