Last week, Google Ads Liason answered common questions and misconceptions about value-based bidding.
Ginny Marvin took to LinkedIn and Twitter platforms for a week-long series of posts explaining the ins and outs of value-based bidding.
Last week Marvin wrapped up the series by answering common advertiser questions she got along the way.
Read on to learn more about Google’s take on value-based bidding.
Day 1: Value-Based Bidding Basics
Marvin laid out the foundations of value-based bidding on day one of the posts.
What is value-based bidding (VBB)?
- VBB seeks to maximize conversion value within your budget & optional ROAS target
- It optimizes for auctions predicted to deliver high conversion value
- It is designed to return a higher total value of conversions but lower conversion volume vs. Maximize Conversions/Target CPA (tCP)A bidding.
Who should use value-based bidding?
Per Marvin’s experience, Google has seen VBB success for companies of varied sizes and conversion cycles:
- Lead generation
- Online sales
- Brick & mortar
Marvin also stated:
The key to using VBB is setting values for the conversions you’re tracking & feeding the right first-party data into Google Ads. You define the value you want to maximize, such as sales revenue, profit margins, lifetime value, etc.
To round out day 1, Marvin answered a few questions about conversions and their impact on using VBB.