Implementation Of Value-Based Bidding Strategy In Search

Implementation Of Value-Based Bidding Strategy In Search

Value-based bidding is maximizing the total value of conversions generated by campaigns. Google AI optimizing bids in real time to reach people who are likely to bring more value to the business.

Evaluating value-based bidding suitability. Value-based bidding fits your business goals and data capabilities to maximize advertising results. Consider:

• Specific value goals: Determine if prioritizing conversion value, like revenue, profit, or customer lifetime value, is essential for achieving business objectives.
• Meaningful value assignments. Assigning accurate values to your conversions, like revenue, profit, lead scores, or predicted lifetime value.
• Measurement capabilities include a current data infrastructure that enables you to measure and connect valuable data to Google Ads campaigns.

About Smart Bidding using value-based bidding for Search

Value-based bidding is a subset of Google Smart Bidding that enables customers to optimize campaigns based on the value brought to their business, maximizing conversion value within a given budget and Target ROAS, which is optional. It differs from conversion-based bidding that aims to maximize conversion volume.

Value-based bidding includes Maximize conversion value with or without a Target ROAS. Use maximize conversion value without a target ROAS if you want to generate as much value as possible within your daily budget. Use maximize conversion value with a target ROAS if you want to Maximize conversion value within set efficiency constraints, which is best with uncapped budgets.

Best practices for value-based bidding, related to conversion goals for value-based bidding, and it is recommended that you choose a single stage in your lead-to-sale journey to use for bid optimization.  

Step 1: Tighten Up Your Tracking

Make sure that your Google Tag or Google Tag Manager is properly installed and configured across your website. This little snippet of code is responsible for measuring crucial information about user interactions, especially those important leads from submissions, to be used as your initial conversion action.

Step 2: Share Offline Conversion Data

Not all valuable customer interactions happen online. Phone calls and other offline conversion events are often just as important in your lead generation efforts. Each stage of the offline sales cycle – lead, marketing qualified lead, sales qualified lead, closed deal, etc. has a certain value for your business. Sharing this offline conversion event data back into your campaigns aids in driving your value-based bidding strategy to find more of the conversions you value most.

Enhanced conversions for Leads. The most durable method for sharing offline sales conversion data is enhanced conversions for leads, as this enables you to attribute offline conversions back to your Google Ads campaigns.

Google Ads Data Manager is designed to make it easier to import and activate your offline conversion and first party-data in one central location. You will find “Data manager” under the Tools icon in Google Ads account, where you can connect your first-party data sources like BigQuery, Google Cloud, HTTP, HubSpot, Snowflake, Google Sheets and more via a direct partner connection or Zapier.

Step 3: Use Data-Driven Attribution

As the customer journey is rarely linear, people might visit your website several times from various sources and interact with your brand on multiple channels before finally submitting a lead, signing up for your newsletter, or becoming a customer. Data-driven attribution model taking all touchpoints into account, assigning credit to each interaction based on its actual contribution to the conversion.

It identifies which keywords, advertising, and campaigns have the greatest influence on your objectives by examining conversions from your website and Google Analytics from Search, Shopping, YouTube, Display, and Demand Gen ads. This method of attribution has the advantage of providing Google’s AI with a more sophisticated knowledge of what is driving outcomes than a last-click or other static attribution model, especially when utilizing value-based bidding tactics.

Setting The Right Goals

It's time to tell Google’s AI what to focus on. As you can and should track a variety of actions within Google Ads, coming to bid optimization, it is crucial to choose a single, primary goal and focus on a single stage of the customer journey. Your primary goal should be the action that is closest to the end of the customer journey, where you have sufficient conversion volume.

You need to make sure that this action occurs at least 15 times per month at the account level so that Google’s AI has enough data to work with. In addition, the shorter the conversion delay, the better. This doesn’t mean that if you have a long sales cycle and relatively low closed-deal conversion volume, you can’t use value-based bidding.

Keep The Data Fresh

Be sure to upload your conversion data to Google Ads frequently, preferably daily. This allows Google AI to have the most up-to-date information, enabling it to make the most accurate predictions and optimizations. Again, you can upload the data by connecting your sources in Data Manager or the Google Ads API