Value-Based Bidding brings meaningful values to Google Ads Smart Bidding. Including value for your conversions teaches the algorithm what’s important to you. (Something a few husbands have yet to learn.) When Google Ads better understands your goals, it can effectively optimize your campaigns. It’s a bit like weighted grades for advanced classes in school.
Value-Based Bidding allows you to:
Google Ads can help you advance your business goals with Value-Based Bidding. When bidding to value, you’ll be able to connect your results to real business goals rather than cost per conversion or return on ad spend. Using the key performance metrics (KPIs) that make sense to the CEO means that your ads will be more in line with your P&L and less abstract to the one signing the checks (which might be you). Some of the important business goals this bidding acts on are:
Data is what makes Smart Bidding effective. When you add value (static or dynamic) to each step of the journey, Google Ads knows what actions your company finds beneficial. It’s vital that Google knows how much each activity plays into growing and scaling your ads and your revenue.
Start with brand awareness activities (also known as micro conversions) like page views, time on site, newsletter signups, and the like. These are the stepping stones to conversion. Then, ensure you’ve given proper weight to form submissions, phone calls, and qualified leads.
Don’t let the measurement end there though. Offline actions also need to be measured if you want to capture each step in the customer’s journey. This includes offline sales, store visits, and driving directions.
Now that you’ve gathered this data with its proper weight and a better picture of your customer, you can work towards your business objectives.
How does Value Bidding assist in reaching business objectives? Based on your inputs, it does the following
Finally, you can tell Google what leads (or sales) are the best for you and optimize every part of your account for it.
Once Google Ads has a better understanding of your goals and priorities, it can begin optimising various parts of your campaigns, starting with your cost per click. Using your goals as a guide, bids are optimised for time of day and adjusted to hit ROAS or cost per acquisition (CPA) goals. With your provided data, Google knows which levers to pull. Changes are made at the time of the auction to help you hit your goals.
If you’re looking to tie your advertising to your real-world numbers and business goals, then Value Based Bidding provides you with the power you need. Feeding Google meaningful data is a lot like having a private chef that knows your food preferences and desired meal times before providing you with a menu. Previously, marketers have never had this level of control to drive conversions that mean the end goal rather than just being an empty lead. These new inputs will save you time and money if appropriately utilized.
Interested in knowing more about Value Based Bidding best practices? Keep an eye out for our next post!
