In today’s digital marketing world, Google and Microsoft Ads have become platforms that offer countless different features, campaigns, and advertising options. Gradually, more options are added to these systems, and therefore it is all the more difficult to familiarize yourself with them and properly set up your campaigns so that they are as efficient as possible.

However, if you want to apply successful PPC tactics to your business, one of the options is to use the Maximize conversion value bidding strategy in combination with the Target ROAS.

What is the Maximize conversion value strategy and how does it work?

Bidding strategy Maximize conversion value works exactly as the name suggests. The given platform aims to bring you the most money from orders for your budget. Unlike the Maximize Conversions bidding strategy, this bidding strategy can bring fewer orders but more profit.

This strategy not only uses advanced machine learning to automatically optimize and adjust bids but also offers auction-time bidding capabilities that customize bids for each auction. Based on your historical performance and an evaluation of the contextual signals present at the time of the auction, Maximize Conversion Value automatically offers the optimal bid for your ad whenever it is eligible to appear.

What is Target ROAS and how does it work?

Target ROAS will try to get as many conversions as possible at your target ROAS. This strategy is a return-on-investment version of Maximize conversion value.

The Target ROAS strategy works similarly to the Target CPA but for Maximize Conversion Value. Target return on ad spend allows you to set the ideal return on ad spend for your campaign. It is calculated by dividing the conversion value by the ad cost.

Whether you’re selling physical products, courses, or any other product where you know your sales revenue, Target ROAS can easily be the strategy for you!

Maximize conversion value with target ROAS

Your target ROAS is the average conversion value you’d like to get for every euro you spend on ads.

Let’s say you want to get ‚ā¨3 worth of sales for every ‚ā¨1 you spend on advertising, then you should set your target ROAS to 300%.

To use this type of bidding, you should already have conversion tracking set up, which allows you to set conversion values. This can either be dynamic tracking, where the conversion value is set as the price of your products, or you can assign a specific value to certain conversions.

If you do not have conversion tracking set up, or you want to check its functionality, contact us at support@shoppingin.eu and we will be happy to help you with it.

Tips & Tricks for better performance

When using Maximize conversion value in conjunction with Target ROAS, there are some best practices to follow to get the most out of it. We always recommend the following 2 steps:

1. You need to have a certain number of conversions

The minimum requirement for this strategy is 15 conversions in the last 30 days for Search and Display campaigns and 20 conversions in the last 45 days for Google Shopping campaigns. It is recommended to have at least 50 conversions in the last 30 days to maximize the effectiveness of this bidding strategy.

2. Do not make drastic changes in strategies

When evaluating performance, do not make decisions about performance and optimization too quickly. Google and Microsoft need time to collect data, and so do you. In addition to these 30 and 50 conversion volume rules, we recommend looking at several months of data and thinking about seasonal trends when making your decision.

Conclusion

Google and Microsoft’s machine learning is getting smarter every day. Maximizing conversion value greatly helps in tracking and optimizing campaign ROI. If there is a reliable way to average your Target Return on Ad Spend and also Maximize the conversion value of your campaigns, then this is the strategy for you. If you want to force the system to perform optimization better, focus more on achieving the ROAS goal, and less on the total conversion value.