What is the Maximize Conversion Value strategy on Google Ads?

Understanding Maximize Conversion Value

What is Maximize Conversion Value?

Maximize Conversion Value is a Google Ads smart bidding strategy that automatically sets bids to maximize the total conversion value of your campaign within your specified budget. It uses advanced machine learning to analyze historical campaign data, contextual signals, and real-time factors to predict which ad auctions are most likely to lead to high-value conversions.

According to Google's documentation, Maximize Conversion Value "automatically finds an optimal CPC bid for your ad each time it's eligible to appear, with the goal of maximizing your campaign's total conversion value within your daily budget."

How Maximize Conversion Value Works

When you select Maximize Conversion Value, Google Ads analyzes data points such as:

• Historical campaign performance
• User location, device, and search query
• Time of day and day of week
• Landing page relevance and quality
• Likelihood of conversion and predicted conversion value

Using this data, the bidding algorithm predicts which ad auctions are most likely to result in high-value conversions and adjusts bids accordingly in real-time. For example, if your goal is sales revenue and the system predicts a particular user is likely to make a high-value purchase, it may raise your bid to increase the chances of showing your ad to that user.

Maximize Conversion Value vs. Maximize Conversions

Maximize Conversion Value is often compared to the Maximize Conversions bidding strategy, but they optimize for different goals:

• Maximize Conversions: Aims to generate the most possible conversions within your budget, regardless of the conversion value. Best for goals like email signups or lead form fills.
• Maximize Conversion Value: Aims to generate the most possible conversion value within your budget. Best for goals with varying conversion values, like sales revenue.

As one PPC expert explains, "Max Conversion will get you the most leads for your budget, but they may not be the most qualified leads. Max Conversion Value will get you the most valuable leads, but at a higher CPA."

When to Use Maximize Conversion Value

Maximize Conversion Value is a good choice when:

• Your campaign has a sufficient number of conversions (at least 30 in the past 30 days for the "maximize conversion value" bidding strategy to have enough data to make accurate predictions)
• You have specific values assigned to your conversion actions
• Your primary goal is to maximize revenue or ROAS

However, if your conversion values are relatively uniform or your main objective is to drive a high volume of conversions, Maximize Conversions may be a better choice. Always align your bidding strategy to your primary campaign goal and KPIs.

Setting Up Maximize Conversion Value Bidding Strategy

Prerequisites Before Using Maximize Conversion Value

Before enabling the Maximize Conversion Value bidding strategy, ensure you meet these key requirements:

1. Set up conversion tracking with transaction-specific values: You must track conversions and assign a monetary value to each conversion action. This allows Google Ads to optimize bids based on the value generated, not just the number of conversions. For example, if you're tracking sales, the conversion value should be the order amount, like $50 for a product purchase.
2. Maintain consistent conversion values: If you recently changed how conversion values are calculated, wait at least 2 weeks before switching to Maximize Conversion Value. Google's machine learning algorithms need time to calibrate to the new data. Changing conversion values frequently can lead to suboptimal results.

According to Google's documentation, campaigns should also have at least 30 conversions in the past 30 days before enabling this strategy. This ensures the algorithm has sufficient data to make informed bidding decisions.

Enabling Maximize Conversion Value for a Single Campaign

To set up Maximize Conversion Value bidding for an individual campaign, follow these steps:

1. Sign in to your Google Ads account and navigate to the Campaigns tab.
2. Select the campaign you want to edit.
3. Click on the Settings tab and scroll down to the Bidding section.
4. Click on Change bid strategy and select Maximize conversion value from the dropdown menu.
5. Set your target ROAS (return on ad spend) if desired. For example, a target ROAS of 150% means you want to generate $1.50 in conversion value for every $1 in ad spend.
6. Click Save to apply the new bidding strategy.

Using Maximize Conversion Value as a Portfolio Bid Strategy

Portfolio bid strategies allow you to apply Maximize Conversion Value across multiple campaigns simultaneously:

1. Navigate to the Tools & Settings menu and select Shared Library.
2. Click on Portfolio bid strategies and select + to create a new strategy.
3. Give your strategy a name, select Maximize conversion value as the strategy type, and set a target ROAS if applicable.
4. Click Save to create the portfolio strategy.
5. To add campaigns, click on the strategy name, then select Add campaigns. Choose the campaigns to include and click Save.

Using a portfolio bid strategy can help optimize performance across your entire account rather than individual campaigns. However, only include campaigns with similar KPIs and conversion types for best results.

Adjusting Conversion Values with Rules

Conversion value rules let you automatically adjust conversion values based on specific criteria, like audience or device. Some examples:

• Increase conversion values by 25% for customers who purchase within 1 day of clicking an ad, since these may be higher-value users.
• Reduce conversion values by 10% for mobile app conversions if data shows these users tend to spend less than those on desktop.
• Adjust values based on a customer's geographic location, like increasing values by 30% for high-income zip codes.

To create a conversion value rule:

1. Go to Tools & Settings > Measurement > Conversions.
2. Click on the conversion action you want to adjust and select Edit settings.
3. Under Value, click on Add a rule and define the relevant criteria and value adjustment.
4. Click Save to apply the rule.

Optimizing Maximize Conversion Value Performance

Once you've set up the Maximize Conversion Value bidding strategy, it's crucial to monitor its performance and make adjustments as needed to ensure it's meeting your ROAS goals. Here's how:

Step 1: Evaluate if the Bidding Strategy is Achieving ROAS Goals

After letting the Maximize Conversion Value bidding strategy run for a sufficient period (usually 2-4 weeks), analyze your campaign data to determine if it's delivering the desired return on ad spend (ROAS).

• In Google Ads, navigate to the "Campaigns" tab and select the relevant campaign.
• Click on the "Columns" drop-down and select "Modify columns."
• Add the "Conv. value/cost" column, which represents your ROAS.
• Compare this value to your target ROAS to gauge performance.

For example, if your target ROAS is 500% and your actual ROAS is 450%, the bidding strategy is close to meeting your goal but may require some fine-tuning.

Step 2: Use Target ROAS with Maximize Conversion Value

If you have a specific ROAS goal in mind, you can pair the Maximize Conversion Value bidding strategy with a Target ROAS:

1. In the campaign settings, click on "Bidding" and then "Change bid strategy."
2. Select "Maximize Conversion Value" and check the box for "Set a target return on ad spend."
3. Enter your desired ROAS percentage, such as 500%.

By setting a Target ROAS, you're telling Google Ads to automatically adjust bids to get the most conversion value while aiming for your specified return on ad spend.

Step 3: Adjust Bids and Settings

While the Maximize Conversion Value bidding strategy automates most of the bidding process, there are some adjustments you can make:

• Device bid adjustments: If you find that certain devices (e.g., mobile) are not performing well, you can set a -100% bid adjustment to exclude them from your campaign. However, be cautious about making other device bid adjustments, as they may interfere with the bidding strategy's optimization.
• Ad scheduling: If you notice that certain days or times consistently underperform, consider adjusting your ad schedule to pause or reduce bids during those periods.
• Location targeting: Review your geographic performance data and exclude or adjust bids for locations that are not meeting your ROAS goals.

Step 4: Troubleshoot Poor Performance

If your campaign is not achieving the expected results with Maximize Conversion Value, consider these troubleshooting tips:

• Check your conversion tracking: Ensure that conversions are being accurately tracked and attributed to the correct campaign. Inaccurate conversion data can skew the bidding strategy's optimization.
• Review your conversion values: If you're using custom conversion values, double-check that they are set up correctly and accurately reflect the value of each conversion action.
• Increase your budget: If your campaign consistently hits its daily budget cap, the bidding strategy may be limited in its ability to optimize. Consider increasing your budget to give the algorithm more flexibility.
• Expand your targeting: If your campaign targeting is too narrow, there may not be enough data for the bidding strategy to make informed optimizations. Try expanding your keywords, audiences, or geographic targeting.
• Be patient: The Maximize Conversion Value bidding strategy needs time to learn and optimize. Allow at least 2-4 weeks of consistent data before making significant changes.