Conversion Value in Google Ads: Meaning and How to Calculate
Conversion Value Explanation:
Conversion value in Google Ads quantifies the significance of various conversions to your business. Not every conversion holds equal importance. For instance, a user simply visiting and leaving your site versus another who makes a purchase represent different values.
Calculation Methods:
To calculate conversion value, you can use tools or set rules that assign values to specific actions, enhancing bid optimization and result analysis. Attribution models further clarify the impact of your campaigns on conversion values.
Importance and Benefits:
Conversion value metrics are essential for measuring ad spend return (ROAS) and evaluating campaign performance. They guide strategic decisions and help optimize resource allocation based on the profitability and effectiveness of specific campaigns or ads.
Conversions vs. Conversion Values:
A conversion tracks an action like a sale or download, while a conversion value assigns a monetary value to these actions, essential for assessing the economic impact of your ads.
Setting Conversion Values:
To set conversion values in Google Ads, assign a static or dynamic value to each action, helping gauge the economic benefit derived from different conversions.
Maximize Conversion Value Strategy:
This strategy aims to optimize bids to maximize conversion values within budget limits, utilizing AI to adjust bids and potentially ignoring existing bid adjustments except for specific cases.
Each step from setting values to optimizing bids using strategies like « Maximize Conversion Value » focuses on leveraging conversions to maximize business gains. This comprehensive approach ensures you maximize the potential of your ad campaigns.