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Smart Bidding uses advanced machine learning and a wide range of contextual signals, to set precise bids for every auction. Within the suite of Smart Bidding strategies in Google Ads, you can choose to optimize towards conversions, or conversion value.
When choosing a bid strategy, the number one question to start with is “what is my business objective, and am I set up to meet that goal?”.
You might observe that not every conversion or customer brings the same value to your business. In other words, some conversions do not matter as much to your business goals, while others are of higher value and should be measured and optimized for accordingly.
Value-based bid strategies on Search allows you to optimize towards the values you assign to your conversions, so that you can drive more overall value for your business. In fact, on average, advertisers that switch their bid strategy from having a target CPA to a target ROAS can see 14% more conversion value at a similar return on ad spend. You are now ready to deep dive into best practices to implement value based bidding in Search.
