In today’s article, Maximize Conversion Value in Google Ads, I will be talking about what is maximize conversion, when is the best time to use it, how to use it, what to expect from it, and some common errors to avoid.
Watch the video version of this article below:
Maximize Conversion Value TIPS for Google Ads
The maximize conversion value in Google Ads is a bidding strategy with a goal of using the maximize total conversion value of your campaign, within your specified budget.
This strategy is exactly what it says. This bidding strategy gives Google the freedom to really maximize the value of returns in terms of revenue figure attached to your conversions.
So Google is trying to maximize that with the available budget to the algorithm. When you run this bidding strategy you are telling Google to go out there and find as much money as possible.
Having said that, maximize conversion value bidding is a very powerful strategy but before you can use it, you must already have a conversion tracking since you have to assign a value to your conversions, if not, then this strategy won’t work.
When do you use maximize conversion value?
Since you need the conversion value before running this kind of bidding strategy, we do manual bidding.
We’ll run a max conversions campaign so that we can get data right away and we control the bids.
After getting 30 conversions, we now have enough data to shift to one of the automated bid types, such as the maximize conversion value bidding.
Manually seeding and collecting data provides you with better and clearer insights before running the maximize conversion bidding.
A few additional pointers to remember when bidding:
- Do not forget that you need to have a conversion tracking first before you run maximize conversion value strategy.
- It is very important that you bid on the lifetime value and not just the customer value. A big mistake that I see many advertisers make is they bid on the customer value. For example, a medical weight loss center might have a customer value of $800 but after up sells, cross sells and repeat sales and referrals a customer value is $1,700. I can bid confidently based on lifetime value and you’ll never compete with me in the auction. I’ll walk away with the best leads and the lion share of the market because I’m basing my bidding decisions on lifetime value.
- Finally, it takes an average of 2 weeks before you can see optimized results. And don’t worry if it feeds out slows at the start, that’s normal. Do not pause your campaign in the first two weeks. Let it run long enough to gather data and learn so you can see the real results from a maximize conversion value bidding strategy.