How To Choose The Right Bid Strategy For Lead Generation Campaigns

Value-based bidding has the major advantage of letting you rank conversions according to their likelihood of increasing revenue or helping you reach particular business objectives, like sales, profit margins, or customer lifetime value.


You can better control your bidding strategy and optimize for conversions that have the biggest impact by giving distinct values to various conversion actions.
Value-based bidding makes sure that your bids accurately represent the value of each conversion, whether it be a lead, a purchase, or a particular action on your website, allowing you to optimize your return on investment (ROI).

 



Which Value-Based Bidding Strategy Should You Choose?

  • The bid strategy will place a higher bid if it concludes that an impression has a high chance of producing a valuable conversion.
  • This bid strategy will place a lower bid if it concludes that the impression is unlikely to result in a high-value conversion.
To maximize performance, value-based bidding can leverage information from all of your campaigns, including the conversion rates you report.
You’ve got two bidding strategy options to tell Google how you want to optimize for value:
  • Increase the conversion value as much as possible.
  • Utilize a target ROAS to optimize conversion value.


Maximize Conversion Value

The goal of this option is to maximize conversion value while staying within a predetermined budget. It is appropriate for marketers who place a high priority on maximizing value within a given budget. Before implementing a target ROAS strategy, advertisers frequently begin with this.
 

Maximize Conversion Value At A Target ROAS

With this option, you can specify a target return on ad spend (ROAS) and tell Google Ads to optimize your bids to maximize conversion value while reaching that target. 
You should not cap or restrict your campaign budget when bidding with a target ROAS. Establishing a target ROAS instructs Google to optimize for value at that particular target rather than maximizing value within a given budget.

Setting Your ROAS Targets

You have the option of setting your own target ROAS or using one that has been suggested. Use the return on ad spend over the previous 30 days as a guide when establishing ROAS goals.


Get Started With An Experiment

Although value-based bidding can be introduced straight away, you might want to begin with a campaign experiment as a small test. This enables you to make data-driven decisions by contrasting the effectiveness of value-based bidding with your current bidding strategy.

If our simulations show that your account is measuring two or more distinct conversion values, you will be advised to "Bid more efficiently with Maximize conversion value" and will probably benefit from this approach.

Using this suggestion, you can design a one-click test to see how value-based bidding affects a particular campaign. To test value-based bidding in your campaign, you can also design a more customized experiment.



Make sure the campaign you select generates enough traffic and conversions to produce results that are statistically significant. While the original campaign keeps using your current bidding strategy, set up the experiment to use value-based bidding.


Tips: Prior to switching to Target ROAS, begin with "Maximize Conversion Value" bidding. This aids in maximizing conversion value within a predetermined budget and offers guidance for establishing a reasonable ROAS target.




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