Value-based bidding in Google Ads: values, goals and switching over

This guide is built from Google Ads Help: About Smart Bidding using value-based bidding for Search and Shopping, Value-based bidding best practices, About Maximize conversion value bidding, Best practices for generating high-quality leads, Value-based bidding using campaign experiments and Value based bidding for Demand Gen campaigns. The Target ROAS strategy itself, with its conversion minimums per campaign type and how to read average target ROAS, has its own Target ROAS guide; this page is about the decision to bid for value and the data that has to be in place first.

What value-based bidding is

Google describes value-based bidding as "a subset of Google Smart Bidding" that optimizes campaigns "based on the value brought to their business". It differs from conversion-based bidding (Maximize conversions and Target CPA), which aims for the largest number of conversions. With value-based bidding you tell Google Ads what each conversion is worth, and the bidder pushes harder in auctions where a more valuable conversion is likely.

There are two strategies under the name:

• Maximize conversion value tries to get the most conversion value from your daily budget. Without a ROAS target it "tries to fully spend your average daily budget", so Google warns that a campaign currently spending well below its budget could spend significantly more after the switch. Our Maximize conversions guide covers how both Maximize strategies use the budget.
• Target ROAS (the former "Maximize conversion value with a Target ROAS") does the same while aiming for a set return on ad spend. Google says the strategy with a target set "will behave like a Target ROAS strategy".

Google's Demand Gen article sums up the four Smart Bidding options in one table:

Maximize conversion value is available for Search, Shopping and Demand Gen campaigns. Google says it does not use your existing bid adjustments, with one exception: a device bid adjustment of -100% still applies. How these strategies sit next to manual bidding is covered in our budgets and bidding guide.

Is it a fit for your account?

Google's best practices page asks three questions before anything else:

1. Do you have value goals beyond volume? If revenue, profit or customer lifetime value matters more than the number of conversions, value bidding makes sense. If you mainly want more conversions, Google points you to Maximize conversions or Target CPA instead.
2. Can you assign meaningful values? Google lists "revenue, profit, lead scores, or predicted lifetime value".
3. Can you measure them? Your data has to reach Google Ads, through the Google tag, Google Tag Manager, enhanced conversions, offline imports or Google Ads Data Manager.

There is also a hard requirement: you must report "two or more different values" to your conversion goals. A shop with order totals meets it easily. A lead-generation business needs more thought. Google's lead quality article says that if you can assign different values to your leads, you should use value-based bidding; if lead quality matters but you cannot give distinct values per conversion, it recommends Target CPA bidding on qualified or converted leads instead.

Deciding what a conversion is worth

The values you send are what the bidder will chase, so they should reflect what the business earns. Google's advice is to start with "the worth of each conversion to your business" and, where exact numbers are hard to pin down, to use proxy values that match your priorities. Its examples of where values differ:

• Different products or shopping carts.
• Particular answers on lead forms that indicate a higher quality lead.
• Channels, such as an online lead versus a phone call.

Values can be real economic values such as revenue, or proxies such as a lead score. You can send several values for one conversion action (dynamic values) or a fixed value on two or more different actions (static values). How each method is set up is explained in the Target ROAS guide and our conversion tracking guide.

Two rules from Google about zero values are easy to miss. It is "generally not recommended" to use conversions with a value of 0 in value bidding; if a conversion truly has no value, Google recommends removing it from the data entirely. And it does not recommend uploading conversions at 0 and restating the value later, unless you use conversion adjustments.

When the value depends on the location, device or audience of the person who converts, conversion value rules can adjust it at auction time, and the customer acquisition goal can add value for new customers.

Choosing the conversion goal to bid on

Google recommends picking a single stage of your lead-to-sale journey for bid optimization, and weighing accuracy against delay. A final sale usually carries the most accurate value, but if it closes weeks after the click, an earlier stage such as a qualified lead may work better. Google's guidance on that stage:

• Volume: at least 15 conversions a month (Google's Search and Shopping article states it as 15 in the last 30 days for Target ROAS).
• Delay: under 7 days between click and reported conversion is recommended. If some conversions are reported within 7 days, a longer average is acceptable. If nothing is uploaded until 7 days after the click, or it takes 7 days or more for all conversions to arrive, Google warns the initial ramp-up "may take several months".
• Freshness: send conversions as soon as they are available. For offline conversions, daily uploads are optimal, and Google cautions against backfilling delayed value data.

For businesses whose sales happen offline, values usually come from the CRM through offline conversion import or enhanced conversions for leads. Google's lead article suggests considering enhanced conversions for leads instead of GCLID-based imports, for more accurate and durable measurement.

Switching over in the right order

Google's Search and Shopping article sets out a sequence:

1. Settle the conversion goal first. If the goal needs to change, start optimizing to the new goal before bidding for value. Google's example: if you bid on lead form submits with Target CPA and want to bid on qualified leads with Target ROAS, first move to qualified leads on Target CPA. You can already send values while still on CPA.
2. Collect values. Once you bid on the goal you want, upload values for 3 weeks or 1 to 2 conversion cycles, whichever is longer, before turning value bidding on. The best practices checklist asks for consistent uploads of at least 4 weeks or 3 conversion cycles, 2 or more unique non-zero values and at least 15 conversions a month at account level.
3. Pick the strategy. For the most value within the budget, Google says it is best to use Maximize conversion value. If you need a specific ROAS, use your historical 30-day ROAS as the benchmark for the target.
4. Give it time. Google suggests a ramp-up of at least 2 weeks or 3 conversion cycles before evaluating performance.

For Search and Shopping, if you only recently started reporting values or changed how they are reported, Google recommends waiting 1 to 2 conversion cycles until values arrive at a similar rate. The detailed workflows for each kind of change are in Google's conversion goals article.

Testing it with an experiment

You can switch straight away, but Google calls campaign experiments "the best way to test value based bidding", because the new strategy runs in a trial arm against the current one with everything else equal. For Shopping, and most simply for Search, Google points to one-click experiments. Its setup rules:

• The campaign already measures 2 or more unique, non-zero values.
• It bids on a primary conversion action, and it has at least 50 conversions in the last 30 days, so both arms get enough data. Google notes this is not a minimum for value bidding in general.
• Test one variable only: the bid strategy. Never test different conversion actions against each other.
• Split traffic 50/50 and turn on experiment sync before you start.
• Keep the budget unconstrained when testing Target ROAS. A capped budget is fine for Maximize conversion value.
• Set fair targets: a Target ROAS at or below the ROAS the CPA campaign achieved over the past 4 weeks. The fairest test is Maximize conversions against Maximize conversion value.

Judge the experiment on conversion value and ROAS. Google says other metrics such as CPA and clicks are "incidental and should not be considered", and the first 2 weeks or 1 to 2 conversion cycles are ramp-up. Our Google Ads experiments guide covers the experiment tool itself.

Demand Gen campaigns

Demand Gen has its own entry rules. Google asks you to build up conversions with value under Maximize conversions or Target CPA first, then meet one of two thresholds: at least 50 conversions with value in the campaign in the past 35 days, including at least 10 in the past 7 days, or at least 100 conversions with value across all Demand Gen campaigns in the past 35 days. Conversions with a value of 0 or a negative value do not count.

After the switch, Google recommends no bid or creative changes for the first 14 days, a starting Target ROAS about 20% below your historical ROAS (its example: 500% achieved, so start at 400%), a budget for about 10 conversions a day with Maximize conversion value, and at least 3 weeks before judging. More on the campaign type is in our Demand Gen guide.

Judging the results

Google's point is to measure value bidding by the value it is built to deliver. Value-based bidding maximizes conversion value within the limits of its strategy; Target CPA optimizes for volume "irrespective of value". Comparing the two on conversion count or CPA will make value bidding look worse even when it does its job. Look at conversion value and conversion value per cost instead, over date ranges that leave out the most recent conversion delay.

When you change a Target ROAS, Google advises waiting 1 to 2 full conversion cycles before comparing average target ROAS with actual ROAS in the bid strategy report, and avoiding several target changes within one cycle. Lowering the target tends to raise total value and volume if the budget allows; raising it improves efficiency but can restrict the auctions you enter. The bid simulator estimates the effect before you commit.

How we approach it

This section is our own working view, not Google's guidance. We do not start with the bid strategy. We start with the values: we check that the numbers in Google Ads match what the business records, that tax, shipping and currency are handled the same way on every conversion, and that no low-value action is mixed into the bidding goal. For lead generation we agree the value of each lead stage with the client in writing before anything is sent, because the bidder will follow those numbers exactly. Only when values have flowed cleanly for the period Google asks for do we move a campaign, usually through an experiment. If you want help with the tracking behind it, our website team can look at the setup.

Frequently asked questions

What is value-based bidding in Google Ads?

It is the part of Smart Bidding that optimizes for conversion value instead of conversion count. It covers two strategies: Maximize conversion value, which gets the most value from your budget, and Target ROAS, which does the same while aiming for a set return on ad spend.

How many conversions do I need for value-based bidding?

Google's best practices ask for at least 15 conversions a month at account level, with 2 or more unique non-zero values. Demand Gen campaigns need 50 conversions with value in 35 days (10 in the last 7) or 100 across all Demand Gen campaigns. A value bidding experiment should have 50 conversions in the last 30 days.

Can I use value-based bidding for lead generation?

Yes, if you can give leads different values, for example from lead scores, form answers or CRM revenue. Google recommends bidding on one stage of the lead-to-sale journey with a delay under 7 days and uploading offline values daily. If you cannot assign distinct values, it recommends Target CPA on qualified or converted leads.

Should I use Maximize conversion value or Target ROAS?

Google says Maximize conversion value is best when you want the most value for your budget and have no return target; it will try to spend the full daily budget. Use Target ROAS when you need a specific return, starting from your historical 30-day ROAS.

Why do my conversions drop after moving to value-based bidding?

The strategy is built to raise total conversion value, not count, so it may take fewer, more valuable conversions. Google says to judge it on conversion value and ROAS, and to treat CPA and clicks as incidental.

For more on Google Ads, see our guides to Maximize conversions, Target CPA, Performance Max and Shopping campaigns.