Another Google Ads tweak has been announced and unveiled by the search giant, which goes by the name of conversion value rules. This new smart bidding tool has been designed to enable advertisers to modify conversion values on the basis of important characteristics like audience, device type and location.
Once you have applied a conversion value rule, it will be reflected in your Google Ads accounting records in the “Conversion Value” column.
Putting the new feature into some kind of context, Google provided the following example of how it works:
“By applying a rule to these characteristics, you can adjust conversion values to align more closely with your business outcomes. Let’s say you run a sporting goods store and know that an audience of people similar to repeat customers who have bought triathlon gear will be worth more to your business in the long run. Now, you can set a rule to multiply the conversion value for this specific group by a factor of two.”
They also provided a second example to clarify any possible confusion:
“You are an online leads business that currently values all leads at $5 through Google Ads. However, you know that Californian leads are typically worth $10. With conversion value rules, you could specify this distinction, and Google Ads would report $10 values for users from California. If you’re using a value-based Smart Bidding strategy, like Target ROAS or Max Conversion Value, then your bidding will automatically optimise for these values as well. Thus, the rule you specify will ultimately better reflect what you know about your business in Google Ads.”
According to Google, the new feature will enable advertisers to simplify the management of their campaigns, more effectively optimise their ads in real-time and ensure their ads achieve their predetermined objectives.
As for the broader benefits of using conversion values, Google highlights the following in its official help centre for publishers:
- Better insight: You can measure the total conversion value generated by your campaigns’ conversions. This also helps you track your campaigns’ ROI by using the “Conversion value/cost” column. You can use this data to identify keywords, ad groups, and campaigns that show a high or low return on investment and manually change bids, budgets, and targeting.
- Smarter bidding: Once you set up your conversion values, you can use either the Target ROAS or the Maximise conversion value bid strategy. Automated bid strategies automatically set bids to optimise for your performance goals across specific campaigns, ad groups, and keywords.
- With Target ROAS, bids are set to maximise conversion value, such as sales revenue or profit margins, while trying to achieve your target return on ad spend (ROAS).
- With Maximise conversion value, bids for each auction are optimised to maximise conversion value.