Maximize Conversion Value: Google Ads bidding explained

Are all Google Ads conversions created equal?

Let’s say a $500 sale and a $50 sale both land in your lap: do you treat them the same?

If not, you need to test Maximize Conversion Value, one of the four Smart Bidding strategies in Google Ads.

We’re going to cover:

• What is Maximize Conversion Value bidding?
• What’s the difference between Maximize Conversion Value and Maximize Conversions?
• Should you use Maximize Conversion Value bidding?
• What’s the difference between Maximize Conversion Value and Target ROAS?
• Do you need a Target ROAS with Maximize Conversion Value?
• When can you use Maximize Conversion Value bidding?
• Tips for optimizing your Maximize Conversion Value bid strategy

What is Maximize Conversion Value bidding?

Maximize Conversion Value is an AI-powered smart bidding strategy that focuses on maximizing the total value of your conversions, within your specified budget. Those values may be revenue, profit, lead scoring… whatever conversion values you’ve assigned to your conversion actions.

Importantly, Maximize Conversion Value’s first goal is to spend your budget, and its second goal is to maximize value.

If you have a specific efficiency goal in mind, you’ll probably want to add an optional Target ROAS, to turn this into a Target ROAS bid strategy instead (we’ll get to that in a bit).

What’s the difference between Maximize Conversion Value and Maximize Conversions?

Unlike Maximize Conversions, which aims to get as many conversions as possible within your budget, Maximize Conversion Value considers the different values assigned to each conversion.

In short:

• Maximize Conversions tells Google, “Get me as many customers as possible.”
• Maximize Conversion Value says, “Get me the most valuable customers possible.” 

Should you use Maximize Conversion Value bidding?

You’ll want to use Maximize Conversion Value when not all conversions are created equal. If some conversions bring in significantly more revenue, profit or value than others, this strategy helps Google prioritize those higher-value actions.

Consider a software company where a free trial sign-up is worth less than a full subscription. Maximize Conversion Value helps Google focus on driving those high-value subscriptions.

For example, these types of businesses will find Maximize Conversion Value useful:

• An ecommerce store selling items ranging from $50 to $500.
• A lead generation business that assigns different values to leads based on their qualification stage.
• A software company that tracks both free trial sign-ups and subscription sign-ups as Primary conversion actions.

However, if all you’re tracking as a Primary conversion action is a phone call, or a lead, or a meeting booking – some kind of binary “conversion happened / conversion didn’t happen” – then you don’t need a value-based bid strategy.

What’s the difference between Maximize Conversion Value and Target ROAS?

Target ROAS (Return on Ad Spend) is a more advanced version of Maximize Conversion Value.

• When you’re using Maximize Conversion Value, you’re telling Google to spend your budget in order to get as much value as possible.
• With Target ROAS, you’re telling Google that efficiency (return on ad spend) is your first priority, and to only spend your budget when it believes it can achieve your efficiency goals.

Think of it like this. Let’s say you’re playing darts, where the objective is to hit a bullseye. If Maximize Conversion Value were playing, her approach would be, “Keep throwing darts until we get as close to the center as possible.” If Target ROAS were playing, her approach would be, “Don’t bother throwing the dart if you’re not pretty darn sure you’re getting a bullseye.”

In general, you should start with Maximize Conversion Value to gather data, then consider adding a Target ROAS once your actual ROAS has stabilized at or near an acceptable level.

When can you use Maximize Conversion Value bidding?

Maximize Conversion Value bidding works with Search, Display, Demand Gen and Performance Max campaigns.

Unfortunately, it’s not compatible with Shopping campaigns. For Shopping, you’ll need to use manual bidding (Manual CPC or Maximize Clicks) or Target ROAS.

Tips for optimizing your Maximize Conversion Value bid strategy

Although Maximize Conversion Value is a fully automated Smart Bidding strategy, you’ve still got a variety of tools at your disposal to optimize and guide the algorithm. These include:

• Conversion Value Rules: Use these to set different conversion values based on audience, device, or location. This allows for more granular control.
• Device Bid Adjustments: This is the only bid adjustment that works with Maximize Conversion Value, if you want to exclude certain devices altogether.
• Conversion Data: Aim for 50-60 conversions every 30 days for Maximize Conversion Value to work effectively. If you’re falling short, consider sticking with Maximize Conversions until you have enough data.

Maximize Conversion Value is a great starter bid strategy for businesses that value conversions differently. These types of businesses should aim to transition to Target ROAS in order to scale and drive sustainable performance.

This article is part of our ongoing weekly Search Engine Land series, Everything you need to know about Google Ads in less than 3 minutes. Every Wednesday, Jyll highlights a different Google Ads feature, and what you need to know to get the best results from it – all in a quick 3-minute read.