How to Maximize Conversion Value and tROAS Bidding for Optimal Results

How to Maximize Conversion Value and tROAS Bidding for Optimal Results

In today’s competitive digital landscape, advertisers are constantly seeking ways to optimize their campaigns and drive maximum conversion value. Two strategies that have gained significant attention in recent years are Max Conversion Value and tROAS (target return-on-ad-spend) bidding. These bidding strategies, when implemented effectively, can help advertisers achieve their goals and improve the overall performance of their campaigns.

Understanding Value-Based Bidding

Value-based bidding is a bidding strategy that focuses on optimizing bids for auctions that are predicted to deliver high conversion value. In Google Ads, this strategy can be implemented using the Maximize conversion value Smart Bidding bid strategy, with the option to add a target return-on-ad-spend (tROAS) for your campaigns. This approach allows advertisers to maximize the overall value generated from their ad spend.

Who Should Use Value-Based Bidding?

Value-based bidding can be beneficial for a wide range of businesses, including online sales, lead generation, and brick-and-mortar establishments. Whether you’re looking to drive sales revenue, increase profit margins, or maximize lifetime value, value-based bidding can help align your campaigns with your business objectives.

To effectively utilize value-based bidding in Google Ads, it is essential to set values for the conversions you are tracking and provide the right first-party data to optimize your account. By feeding relevant data, such as lifetime value, profit margins, or gross merchandise value, into Google Ads, the system can optimize your campaigns to maximize the values that matter most to your business.

Key Considerations for Max Conversion Value and tROAS Bidding

While Max Conversion Value and tROAS bidding can offer significant benefits, there are several essential factors to consider when implementing these strategies. Understanding these considerations will help you optimize your campaigns and achieve your desired results.

Setting a Target ROAS

When using tROAS bidding, setting a target return-on-ad-spend is crucial. This target guides the bidding strategy to optimize for auctions that are more likely to deliver your desired ROAS. By explicitly setting a target, you can manage your campaign spend effectively and ensure your ads align with your performance goals.

It is important to note that for the bidding system to fully optimize towards your ROAS target, it is recommended to have unconstrained campaign budgets. Constrained budgets may result in the system overachieving your ROAS target to maximize the available budget. By allowing for unconstrained budgets, you can take full advantage of the bidding strategy and make the most of peak demand periods.

Conversion Minimums for Value-Based Bidding

To utilize Max Conversion Value and tROAS bidding effectively, it is essential to have a sufficient number of conversions. For tROAS bidding, most campaign types require at least 15 conversions within the last 30 days. It is particularly important for primary conversions to meet this minimum requirement at the conversion tracking level. Having an adequate number of conversions provides the bidding system with enough data to make informed optimization decisions.

In situations where you don’t have enough bottom-funnel conversions, it is recommended to optimize for the lowest-funnel conversion action possible. Although optimizing for higher-funnel conversion actions can be challenging, consolidating campaigns with similar goals and utilizing shared budgets or portfolio strategies can help leverage the available data and optimize effectively.

Using Multiple Conversion Actions with Different Values

Value-based bidding allows for the use of multiple conversion actions with different values. It is best practice to upload the true values of conversions that align with your business goals. By defining the values you want to maximize, such as sales revenue, profit margins, or lifetime value, you can provide the bidding system with the necessary information to optimize your campaigns effectively.

Consider adding more values based on your other marketing objectives or sales channels. For example, you can include new customer acquisition, store sales and conversions, or app conversions. Including all relevant conversion actions in the conversions column will allow them to inform the max conversion value and tROAS bidding strategies.

Optimizing Value-Based Bidding for Your Business

While value-based bidding provides a powerful tool for advertisers, it is essential to optimize the strategy to align with your specific business goals. By following these best practices, you can ensure that your campaigns maximize conversion value and deliver the desired results.

Importing Conversion Values

One common challenge is importing conversion values when the exact value of conversion actions is unknown. Many businesses may not have data on lifetime value, profit margins, or gross merchandise value readily available. In such cases, proxy values can be used to approximate the value of conversion actions. For lead generation, it is recommended to optimize for a single funnel stage, such as lead submissions, whenever possible. As you experiment and gather data, be patient and allow time to establish accurate proxy values that drive meaningful value to your business.

Google Ads provides tools to help estimate the average value of stages in your sales funnel based on the values you do know. The conversion values calculator can assist in gauging the average value of stages in your sales funnel, allowing you to make informed decisions and set appropriate values for bidding optimization.

Testing and Evaluating Value-Based Bidding

When implementing value-based bidding strategies, it is crucial to test and evaluate their effectiveness. Google Ads offers campaign experiments, which allow you to test the switch to Max Conversion Value and tROAS bidding. Evaluating the performance of the experiment arm compared to the control arm will help determine whether the bidding strategy is driving more value.

To ensure accurate evaluation, it is recommended to give the bid strategy at least two weeks or three conversion cycles to learn and adapt. This timeframe allows the bidding system to gather sufficient data and make informed decisions. Additionally, leveraging bid simulators can help understand the impact of setting lower or higher ROAS targets on reach and conversion volume.


Maximizing conversion value and leveraging tROAS bidding are powerful strategies for advertisers seeking to optimize their campaigns and achieve their business goals. By implementing value-based bidding, advertisers can align their campaigns with their desired outcomes and drive maximum value from their advertising spend.

To effectively utilize these bidding strategies, it is essential to set target ROAS, meet conversion minimums, and leverage multiple conversion actions with different values. By optimizing value-based bidding for your business and conducting thorough testing and evaluations, you can ensure that your campaigns deliver optimal results.

Remember, value-based bidding is not a one-size-fits-all solution. Tailor the strategy, account structure, and data signals to align with your business objectives. By continuously testing, learning, and iterating, you can unlock the full potential of Max Conversion Value and tROAS bidding and drive success in your advertising campaigns.

*Note: The primary keyword for this article is “Max Conversion Value and tROAS Bidding.” The secondary keywords are “value-based bidding,” “target return-on-ad-spend,” and “optimization strategies.”

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