If your company or organisation has any involvement with Google Ads, or if you are considering using the search giant’s online advertising platform to draw more of the right attention to your brand and its offerings, you might have heard a fair bit about “value-based bidding” lately.
Also often referred to as simply “VBB”, this bid strategy enables brands to optimise their Google Ads campaigns for the most valuable actions.
In other words, you can use VBB to prioritise conversions differently, depending on how valuable the given conversions would be for your business. By assigning values to a range of actions – such as completing a form, downloading a white paper, or watching a video – you can direct Google Ads’ bidding algorithm to optimise for higher-value outcomes.
As a consequence, you won’t be reduced to merely aiming for conversion volume with your brand’s Google Ads campaigns. Instead, you can align your business’s ads with your profitability goals. This can help maximise the total value of conversions that your campaigns generate.
What’s the difference between value-based bidding and ‘maximise conversions’ bidding?
In the past, your brand might have used “maximise conversions” bidding in Google Ads. This feature automatically sets bids to help the advertiser achieve the most conversions through their Google Ads campaigns, while spending their budget.
However, this type of bidding is typically centred on racking up conversions and maximising volume. Achieving the highest possible numbers of conversions is a process that can be worthwhile in itself. However, it can also be a limited approach, given the broad variety of values that different conversion actions can deliver for a brand.
After all, the buying journey has various intricacies and complexities, which a focus on simply maximising the numbers of conversions cannot account for. A target customer may fill in and submit a form, for example, with this leading to a return call… only for the call centre to struggle to reach the lead, or the lead to simply forget they even completed an online form.
You could be just a phone call away from greatly enhancing your brand’s Google Ads efforts
Ultimately, VBB will be better suited to some brands’ requirements that it will be for others. If, for instance, the achievement of your business objectives depends on prioritising conversion value – such as revenue, profit, or customer lifetime value – and not just conversion volume, the merits of value-based bidding may be well worth considering.
Are you keen to discover the range of ways in which our team at Jumping Spider Media can help you extract the greatest potential of your Google Ads campaigns? If so, please feel free to reach out to us – whether via phone or email – to learn more about the comprehensive and tailored Pay Per Click (PPC) management services we can provide.