Google realizes some conversions are more valuable than others. The values are based on characteristics like location, device, and audience.
Expressing these values can help marketers optimize campaigns and evaluate performance based on the goals that matter most to the business, so conversion value rules will now allow marketers to provide additional information that is not reflected in the accounts.
Wataru Yamamoto, digital marketing specialist at Rakuten Group, describes how his group managed to optimize the return on investment for each device and increase gross merchandise value by more than 24%.
Google will allow marketers to apply these rules to specific characteristics so marketers can adjust conversion values to align more closely with business outcomes.
“For example, let’s say you run a sporting goods store and know that an audience of people similar to repeat customers who have bought triathlon gear will be worth more to your business in the long run,” Stephen Chang, product manager for Google Ads, writes in a post. “Now, you can set a rule to multiply the conversion value for this specific group by a factor of two.”
After a rule is applied, marketers will see it reflected in the Conversion value’ column in their account reporting. These rules will also be used by Maximize conversion value and target return on as spend to optimize your bids in real time.
Here’s another example. Take an online leads business that currently values all leads at $5 through Google Ads. The marketer knows leads from California are typically worth $10. With conversion value rules, the marketer can specify this distinction, and Google Ads would report $10 values for users from California.
If the marketer is using a value-based Smart Bidding strategy, “like Target ROAS or Max Conversion Value, then your bidding will automatically optimize for these values as well,” according to Google. “The rule you specify will ultimately better reflect what you know about your business in Google Ads.”
Conversion value rules become available for Smart Bidding across across Search, Shopping, and Display during the next few weeks.