Maximize Conversion Value Bidding in Google Ads

Maximize Conversion Value bidding was introduced by Google in 2019. It's a form of smart bidding that uses machine learning to automatically set bids with the goal of generating the highest revenue or lead value for your budget.

Here's how it works:

• It requires conversion tracking and assigned conversion values to be set up. For ecommerce, this means passing sale revenue to Google. For lead gen, you'll need to assign values to each lead.
• It utilizes your historical performance data and contextual signals (like device, location, time of day) to optimize bids.
• The system looks to bring in the most total conversion value, not necessarily the most conversions. It factors in the likelihood of a conversion for each bid.
• There are minimal settings - you mainly just tell Google you want to focus on "conversion value." The rest is automated.

Pros of Using Maximize Conversion Value Bidding

Here are some of the benefits of this smart bidding strategy:

• It's easy to set up with minimal ongoing optimization needed. Google's algorithm handles the heavy lifting.
• For established campaigns with sufficient conversion data, it can optimize bids better than manual bidding.
• It balances bid amounts based on likelihood of converting.
• It typically spends your full daily budget in order to maximize conversion value.
• Good option if you want to see the full potential of Google's automation capabilities.

Cons of Using Maximize Conversion Value Bidding

There are also some potential downsides:

• Limited control and transparency into how Google determines optimal bids.
• Your campaign can overspend your daily budget (but never monthly) if guardrails like target ROAS aren't set properly.
• Might not be efficient with budgets if the algorithm determines it can get more conversion value by spending more.
• Not ideal for new campaigns or those with limited conversion history. The system needs data to optimize effectively.
• You may value efficiency over maximum conversion value generated.

Tips for Success With Maximize Conversion Value Bidding

To get the most out of this bidding strategy, keep these tips in mind:

• Set up accurate conversion tracking and pass conversion values to Google. Garbage in, garbage out.
• Give the algorithm at least 30-90 days to optimize with enough conversion data. Patience is key.
• Monitor performance regularly and tweak target ROAS or other settings if needed. Don't just set and forget.
• Start without a target ROAS first to allow Google to determine the optimal performance benchmark.
• This works best for search and shopping campaigns. Use manual bidding for display, etc.

The Bottom Line

Maximize Conversion Value bidding can be a powerful automated strategy for search campaigns when implemented properly. It may take some trial and error to configure the optimal settings. While the "black box" aspect can be frustrating at times, the performance potential is significant. Track it diligently and remain patient as the algorithm continues learning. For many accounts, this smart bidding strategy is well worth testing.