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What Two Things Are Types of Value-Based Smart Bidding Strategies?

If you’re running Google Ads, you’ve probably come across Smart Bidding strategies. These strategies use machine learning to help you get the most out of your ad budget by adjusting bids in real time. Among these, value-based Smart Bidding strategies are all about maximising the value you get from your conversions. But what exactly are the two types of value-based Smart Bidding strategies? Let’s break them down in simple terms.

1. Maximise Conversion Value

The first strategy is Maximise Conversion Value. This strategy focuses on driving the highest possible total value from your conversions, such as sales or leads. Instead of just aiming for the highest number of conversions, it considers the actual worth of each conversion. For example, if you’re running an online store, some products may have higher profit margins than others. With this strategy, Google Ads will automatically prioritise bids for conversions that are likely to bring in more value, ensuring that your advertising spend is used in the best way possible.

2. Maximise Conversion Value with Target ROAS

The second strategy is Maximise Conversion Value with Target ROAS (Return on Ad Spend). ROAS is a metric that tells you how much revenue you’re earning for every dollar spent on ads. While the first strategy focuses solely on maximising conversion value, this one allows you to set a specific target for how much return you want from your ad spend. If your goal is to achieve a 500% ROAS, for example, Google Ads will aim to adjust your bids so that for every dollar you spend, you’ll earn five dollars in return. This makes it ideal for advertisers who have specific profitability goals in mind.

Conclusion

In short, the two main value-based Smart Bidding strategies are Maximise Conversion Value and Maximise Conversion Value with Target ROAS. The first one helps you get the most value from your ads, while the second one lets you aim for a specific return on your ad spend. Both strategies can be powerful tools to improve your advertising results, especially if you’re looking to focus on the actual value of each conversion rather than just increasing the number of conversions.

By understanding and using these strategies effectively, you can make sure your ads are working smarter, helping you reach your business goals more efficiently.

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Original Source: https://www.sfdigital.co.uk/blog/what-two-things-are-types-of-value-based-smart-bidding-strategies/

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