Google Ads has now implemented new Conversion Value Rules so that advertisers will have more control over smart bidding.
What are Conversion Value Rules and what do they do? How do they benefit marketers (if they do), and is it good enough to improve ROAS? Never fear - we’ll explain everything you need to know about Conversion Value Rules.
What Are the New Conversion Value Rules in Google Ads?
Conversion Value Rules in Google Ads are a way to help users track and optimize a campaign’s ROAS. Therefore, this is an integral part of an ad campaign and it is important to understand the ins and outs of conversion value rules so as to maximize profits. Conversion Value Rules also gives users additional information that isn’t already reflected in the Google Ads account but is important nonetheless. With these new Conversion Value Rules, users can explore different margins for different types of users, as well as lifetime value consideration.
These rules can be applied to specific audiences, geographic locations, and devices. These rules can also be applied to specific transactions, conversions with the same value, conversion value currency, and conversions without a monetary value. Bidding strategies can also be improved by these new Conversion Value Rules as well.
These values work with transactions that are different each time a conversion happens. This is most prominently helpful in e-commerce, as one purchase might be worth $50 while another purchase might be worth more or less.
Conversion Value Rules can help e-commerce focused businesses track and optimize ad campaign ROAS, as well as Smart Bidding strategies. Even if a customer makes more than one transaction, users have the option of counting one value or every value that is relevant to that specific customer. Not only will you get a very detailed view of the customer journey, but you can track your ROAS on a small scale per customer basis.
Conversions with the Same Value
Conversions are not just for e-commerce business owners. Conversion values can be kept the same which is convenient for tracking several conversion actions at once. This way, it is possible for advertisers to capture separate values, which makes it easy for marketers to see the difference between two conversion actions. Conversions with the same value can also be beneficial for businesses that utilize form submissions, price quotes, test drives, callback requests, and store location lookups.
Conversion Value Currency
Business owners and marketers who use different currencies can also implement Conversion Values. If, for instance, a customer purchases something using a different currency than the currency that you use to bill, Google Ads will import Google Analytics Conversions data and convert this into currency that business owners are familiar with.
Manually converting currency in order to keep track of your ROAS is no longer necessary. It will be easier for everything to be in one currency so you can keep track of financials without confusion.
Conversions Without a Monetary Value
Sometimes, conversions can occur without monetary value. It’s still possible to measure the value of these conversion actions - usually called KPIs, or key performance indicators, - whether or not currency is assigned. This is especially valuable for tracking email sign ups. Even though email signups don’t net profit, it can still be helpful to sign a numerical value in order to keep track of your conversions.
Bid strategies are an important part of using Google Ads. Once conversion values are set up, it’s possible to maximize these values and target bid strategies that will optimize their target CPA. With Google’s automated bid strategies, it becomes possible for users to automatically set bills to optimize performance goals. These strategies use real-time details such as device, browser, location, time of day, and other demographic information to adjust bids during each individual auction.
Benefits of Using the New Conversion Rules in Google Ads
There are several benefits of using the new conversion rules in Google Ads.
The first benefit is an increase in ROAS - there are strategies involved in these conversion rules that help users maximize conversion value while monitoring return on ad spend.
Google Ads’ new conversion rules also offer users better insight. It becomes easier to measure the total conversion value generated by an ad campaign. This data can also help users identify keywords, ad groups, and campaigns. Plus, with automation, it’s easier than ever to change bids, budgets, and targeting that isn’t working.
Another benefit is smarter bidding. Automated bid strategies allow for performance optimization when it comes to specific campaigns, ad groups, and keywords. Plus, smarter bidding can help maximize conversion value such as revenue or profit, while maximizing ROAS at the same time.
Is It Enough, Though?
Whi While all of these new features that come with Google Ads’ new conversion rules seem like a great way to maximize ROAS, marketers are wondering if it’s enough. As we have discussed before, Smart Campaigns are not always very smart, so we're curious to see how much of a difference the new conversion value rules in Google Ads will actually make in the end.