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Value Based Bidding in Google Ads | Comprehensive Guide

By Goutham Veerabathini

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On November 5, 2024

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What you'll get in this blog

The recent crucial update to the bid strategies by Google is 'The Value Based Bidding'. Until now, most marketers were going with the traditional bidding strategies to bid for a conversion action. Now is the right time to make a shift to bid for value to increase your conversion value and profit margins. 

Frequently Asked Questions (FAQs)

Maximize Conversion value bidding strategy is an advanced strategy that helps you bid for maximizing your conversion value based on the conversion tracking you set up. It does not focus on getting more conversions rather focusses on getting more value.
Conversion based bidding is a bidding strategy wherein Google Ads bids for maximizing conversions. The key objective in this is to set a target CPA & optimize for maximum conversions. That is, the automated Smart Bidding will bring in the maximum conversions possible at your desired target CPA.
To say it in layman terms, the first one will focus on quantity while the second one will focus on quality. Conversion bidding will work on achieving the target CPA while giving you maximum conversions. And the value based bidding gives you maximum conversion value by bidding higher for the high value conversions. The latter will help you achieve your target ROAS.
In simpler terms, it is the bidding that bids based on the different conversion values that happen for your business.
avatar image Goutham Veerabathini

Marketing enthusiast who enjoys writing articles on a wide range of topics including Marketing, SaaS, Technology, Construction, Life lessons, Public Policy Nature, and Sustainability. Good at Public Policy analysis with a deeper understanding of societal issues and potential solutions. Also loves to volunteer & contribute to society in every possible way.

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