In this video I am going to break down the maximize conversion value bidding strategy. It could be the best bidding strategy you could ever pick if your business makes sales online and you have a high enough volume of transactions for Google to get good data to optimize for this strategy.
I am going to break down how this strategy works, what to expect and when to use it.
What is Maximize Conversion Value Bidding?
Firstly it’s important to understand exactly what this bid strategy is and what it is trying to achieve. The maximize conversion value bid strategy is essentially giving Google’s machine learning the objective of getting the highest value of conversions possible for your budget.
That doesn’t mean focusing on only high value transactions, but it means simply getting the most value in terms of revenue from your campaign budget. So say for example if you had a campaign with 2 products with 2 transaction values. Product 1 has a value of $10 dollars and product 2 has a transaction value of $300.
Google won’t be biased towards a particular budget based on the value alone of each product, but they will be biased to the performance of the products in terms of campaign budget vs total transaction value.
So even if product 2 has a transaction value of $300, if Google determines it can get more transaction total value at campaign level from promoting keywords that generate sales of the smaller $10 product 1, then that’s what it would do. It simply wants to get as much value as possible regardless of product.
When to use Maximize Conversion Value
The usual smart bidding caveats exist. Your campaign need a good level of transaction volumes. If your campaign gets less than 30 transactions per month, then smart bidding probably isn’t going to work very well for you. And of course, the more transactions you make per month on average, the better!
You also shouldn’t be budget restricted, because again that will hinder Google’ machine learning.
But all things being positive, Google will raise or lower your bids at auction time depending on the user profile of the person searching, including the device, location, time of day, and dozens of other factors.
You can also add a layer of additional control by chosing a target return on advertising spend (target roas)
I have done a video on the target ROAS bid strategy so that’s in the description below
Target ROAS Explained
• Target ROAS in Google ...
What that means is that you can ensure that your business goals can still be met. If you require a specific return on your ad spend, you can lock that into your bidding strategy, but still allow Google to go out there and get as much bang for your buck as possible, which is why this is such a powerful bidding strategy.
So when should you leverage this strategy
Of course, your campaign conversions need to have a value, meaning you sell something online and there is a specific transaction value. If you’re setting up a new campaign, Google can take a long time to figure out what bid levels lead to a sale, so I would often advise you start with manual CPC in the first instance to gather data for a month.
Once you’re confident you’ve got enough data and have control over your CPC’s then you can transition to a target ROAS or a Maximize Conversion Value strategy.
Because you can work to a target ROAS with a maximize conversion value, it makes sense to choose this strategy first when choosing a revenue based bidding strategy.
Summary
Maximize Conversion Value in my opinion is the best smart bidding strategy for revenue based campaigns where you measure the value of conversions. Because you can layer it with a target ROAS, it can give you control but also flexibility.
If you liked this video, don’t forget to subscribe!
/ @darrentaylordigital
I reply to ALL comments so hit me up and I'll be happy to have a chat :)
If you want to get more from marketing, check out my marketing courses!
thebigmarketer...
And as always, if you have a question, or want me to cover a particular subject or marketing challenge you’re facing, head over to my website www.thebigmarketer.com and get in touch. I would love to hear from you!
Let's get Social!
Twitter: / thebigmarketer
Facebook: / thebigmarketer
LinkedIn: / thebigmarketer
Instagram: / thebigmarketer
5 окт 2024
