In Google’s AD, Google provide numbers of automated bidding strategies which helps machine learning to optimize bids for conversion. Automated bidding can help to save time and focus on startegy, creativity and other market need. Here we are going to know about Maximize Conversion Value Bidding strategy.
What is Maximize Conversion Value ?
In August 2019, Google released a new Smart Bidding Strategy, “Maximize Conversion Value”. This new Google Ads smart bidding strategy attempts to capture the greatest conversion value possible with a given budget. This algorithm take use of historical campaign data and contextual signals including device, location, time of day, demographics, query,and more to find the optimal CPC bid for each auction. BUt before using maximize conversion value bidding strategy , make sure it’s a good fit for yout business goals. We will need to have transaction-specific conversion value for tracking in place or we have to manually set values for the conversions we are optimizing toward from the COnversions tab on Google Ads. If you are already tracking revenue and your client is growth-oriented, Maximize Conversion Value is a good fit for your campaign. If our focus is on lead generation and CPA, this bid strategy can still be tested by setting values for your lead conversions. If we use Maximize Conversion Value nwith a set target ROAS, then it will act like a Target ROAS strategy. We can Maximize the total conversion value of your campaign within your specified budget with the Maximize conversion value bidding strategy. SO basically, this bidding strategy uses machine learning for optimizing automatic and set bids. You define the value that you want to maximize, such as sales revenue or profit margins, when you set up conversion tracking for your account. which means, Google uses the value you give for each of your Conversions and optimizes to give you the greatest conversion value within your budget. This bidding strategy is only available for Search campaigns and Smart Shopping campaigns.
How Maximize COnversion value works ?
This bidding strategy works by using historucal performance and evaluating contextual signals present at auction time, Maximum conversion value bidding automatically finds an optimal bid for your ad each time it is available to apear. Google sets these bids to get conversions that are most valuable for your campaign while spending you budget. BUt before using maximize conversion value bidding, You need to check your daily budget amount. If a traget return on AD spent isn’t set, then maximize conversion value bidding strategy will try to fully spend your average daily budget. This is a good bidding strategy for eCommerce, or for clients that have some Conversions that are more valuable to their business than others.
Benefits of Maximize Conversion value:
1. Conversion and profit focused
2. Can set a tROAS goal
3. Will prioritize conversions based on value to your business
Drawbacks of Maximize Conversion value:
1. It can increase CPC to spend daily budget
2. It can increase conversions with little value when not likely to get high-value conversions
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