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Transcript – Maximize Conversion Value Bidding Strategy Explained
In this video, I’m going to break down the maximize conversion value bidding strategy. Now I’m pretty excited by the strategy because it allows you to have the flexibility of some of the other bidding strategies that focus around your revenue. In addition to that, what you’re doing is you’re asking Google to go out there and find as much revenue for your business within your budget. It’s a really exciting strategy. I’m going to explain to you how to use it, when to use it and what to expect coming up.
Hey guys, Darren Taylor of thebigmarketer.com here and my job is to make you a better marketer. Now if you’re new to the channel, my name is Darren Taylor, I am a digital marketing consultant and trainer. I specialize really in search engine marketing, be the SEO or PPC. If that sounds like something of interest to you, you should consider subscribing to the channel. In this video we are breaking down the maximize conversion value bidding strategy.
Now, of course for the strategy to work, you need to be able to track revenue from your PPC campaign. Every conversion in your accounts needs to have a value, but before I go into more detail, it makes sense to explain what the strategy is trying to achieve. The maximize conversion value bidding strategy is exactly what it says. What you’re doing is you’re giving Google free rein to really try and maximize the value of returns in terms of that revenue figure attached to your conversions. It’s trying to maximize that with the budget available to the algorithm. Giving Google all of your budgets and telling it to go out there and find as much money as possible.
It’s a really powerful strategy that allows you to try and maximize your revenues. Now of course, as I mentioned in the introduction for this to work, you need to be able to track your revenue and your conversion. If you don’t assign a value to your conversions, of course this strategy won’t work. Now sometimes there’s a little bit of confusion as to what it means to maximize the value of conversions.
Some people think that what it’s trying to do is trying to achieve the most expensive conversions on your website in terms of the most expensive product you have and maximizing the revenue in that way to make the average conversion value really high but in actual fact that’s not how it works. What it’s trying to do is maximize the total revenue, the total conversion value of your campaigns. It’s not just necessarily focusing on the high ticket items, it looks at the whole of your campaign and all the options available and it will try and maximize that revenue.
Say for example, you have two products on your websites, one’s valued at $10 per sale and another product on your website is valued at $300 per sale. Now you might think that it’s common sense that Google will try and push the $300 product in order to maximize the value of conversions, but that isn’t the case. If Google determines with its algorithms that the cheaper products is actually selling more frequently and therefore providing better returns and getting a high of revenue figure overall in your campaign, then Google will try and push the bids on the keywords and the circumstances that are leading to those smaller sales because overall in the campaign they are the ones that are driving your revenue.
It’s not stupid, it’s not trying to push towards just the expensive products, it’s going to maximize your overall revenue. When should you use a maximize conversion value bidding strategy? Well, as I’ve said already, you need to be tracking revenue in your campaigns as the starting points and of course this is a Google ads smart bidding strategy. The usual terms and conditions apply when running a smart bidding campaign because of course Google needs enough data points to make those intelligent decisions at auction time in order to maximize your campaign objectives based on the smart bidding strategy you’ve selected.
In that respect, what it means is you really need to make sure you’re getting a good healthy number of conversions into your accounts. If your campaign is getting maybe five conversions a month, that’s not nearly enough good data for Google to make good decisions. Although Google claims it can make good decisions with small limited amounts of data, usually manual CPC outperforms a smart bidding strategy when you have limited conversions in the accounts.
Unlike any other smart bidding strategy as well, you need to make sure you have the budget to run with it because if your budget restricted, it can also cause problems with the machine learning because Google doesn’t necessarily have the flexibility in order to maximize everything for your campaigns. You need to make sure you’re in a comfortable position where you have maximized your campaigns, you’re not budget restricted, and you’re getting a healthy level of conversions as well.
All things being good and positive in your campaigns then this strategy will essentially change your bids that you’ll either raise them or lower them based on a ton of factors including time of day, device, user profile, everything you can think of in order to maximize your campaign conversions. Now there one other major reason why I love this bidding strategy, but before I go into that, hit the like button if you like what you’re hearing so far, let me know in the comments if you’re struggling with your maximize conversion value strategy and I will be happy to help you down there.
The feature I like is that you can lay out a strategy with a target return on advertising spend. Now, if you’re not sure what a target ROAS as it’s known is then I’ve done a video on this as well previously. You can check that out across my channel and that will explain to you what the strategy is trying to do as well. What it means is you can lay out a strategy with the target ROAS.
Even if you want Google to go out there and maximize your value of conversions, if you need to meet a business objective in terms of fitting your budget versus revenue into a certain bracket. Maybe your business needs a 200% return on advertising spend, maybe a 300% return on advertising spend, then you can actually set that alongside this strategy as well. You’re asking Google to go out there and get as many conversions as possible in terms of that value, but also stay within a remit as well. It gives you a little bit of extra safety, which is really useful and not something you see in many bidding strategies.
I can already hear you asking me how do I move over to this bidding strategy? If you’ve been running a campaign maybe on target CPA, but you’re also tracking revenue or maybe you’re running a campaign on manual CPC and you’re looking at using a smart bidding strategy and you’re tracking the value of conversions as well, well, the way to transition to this of course to make sure we have enough data in your account, enough recent conversion data in order to know that Google will make the correct decision.
When setting a new campaign up, I would personally start with a simpler bidding strategy or maybe even a manual CPC strategy and then give yourself 30 days of optimization and intensive work on your accounts. Then from that point you can go ahead and select the right bidding strategy for you and this maximize conversion value strategy might be the one for you if you’re tracking revenue and you want to maximize that revenue as well.
In my humble opinion, I think of all the strategies that look at targeting a specific revenue figure, this is the best one because you get the best of both worlds, you get a target ROAS, and you also get to maximize the value of your conversions. If you’re tracking your revenue, to me, this is the strategy you need to transition onto in order to maximize your campaign revenue.
Thank you guys so much for watching this video. If you liked it, please hit the like button below. Let me know in the comments if you’re struggling with the any bidding strategies you’re running on Google Ads, I’ll be more than happy to help you out in the comments. I reply to pretty much every single comments I get, so feel free to hit me up down there. More important than that don’t forget to subscribe, check out the other content across my channel, and I’ll see you guys on my very next video.