Google's ad algorithm is now best at optimizing performance when ad campaigns are structured with either a max conversion value bid strategy or target ROAS, even when the target KPI is a lead submission or phone call. The max conversion value bid strategy allows advertisers to set values for each conversion action, which tells the bidding algorithm to prioritize higher-value actions. Using a value-focused bidding strategy can both increase lead volume, decrease CPA & help prioritize conversions that are more meaningful for your business.
Testing Max Conversion Value To Increase Key Conversions’ Volume
Assigning a value to non-purchase conversions is quickly becoming a best practice in paid search advertising. In our latest test, we assigned values to phone calls & form fills for 3 different car dealerships based on which conversion was most valuable to them. Other conversions that are tracked, but not a priority were left with a $1 conversion value to deprioritize them in the algorithm.
Two dealerships prioritized phone calls & one dealership prioritized form fills.
Results Achieved
After one month, we saw a 25% increase in phone calls & a 45% increase in form fills. We also saw a 45% increase in overall conversions. While each client had a goal to improve a specific conversion, we saw an overall increase in conversions as well.
While a maximize conversion bidding strategy is meant to increase conversion volume and control your Cost Per Lead, we saw that a maximize conversion value strategy not only increased the number of key conversions but also improved the CPL.
Across the same 3 auto accounts, we saw a 20% improvement in our cost per lead.
Conclusion
GLD recommends assigning a value to KPIs in Google Ads and testing into a maximize conversion value or target ROAS bidding strategy. Utilizing this bidding strategy helped improve automotive clients' conversion volume & cost per lead in comparison to maximize conversion bidding. Value-based bidding also drove more key conversions for clients based on their business objectives.
This strategy takes advantage of the algorithm’s most optimized bidding strategy & applies it to conversions that do not directly lead to revenue (such as a purchase) to mimic the success that is seen in other industries with this bidding strategy.