Should you Optimize your Google ads for Conversions or Conversion Value?
"Invest in yourself, and the rest will follow." - Unknown
Conversions vs. Conversion Value: Which Should You Optimize For in Google Ads?
When it comes to Google Ads bidding strategies, the decision between optimizing for conversions or conversion value can be perplexing. Both are essential metrics, but they represent different aspects of your campaign's success. Let’s break down the differences and help you determine which approach is best for your business.
First, What is a Conversion?
A conversion is a desired action a user takes after clicking on your ad. This could be anything from making a purchase, signing up for a newsletter, or filling out a contact form. Google Ads allows you to track these actions and optimize your campaigns accordingly.
Next, What is Conversion Value?
Conversion value assigns a monetary value to each conversion. This helps you understand the overall impact of your campaigns on your bottom line. By assigning values to different conversions, you can prioritize those that contribute most to your revenue.
Conversions vs. Conversion Value: Which Should You Optimize For?
The optimal choice depends on your business goals and the nature of your campaigns.
Optimizing for Conversions:
Focuses: On Generating a high volume of conversions is your primary objective.
Best for: Businesses with clear and easily measurable conversion goals, such as lead generation or e-commerce stores with similar product prices.
Example: A lead generation campaign for a gym might prioritize the number of sign-ups over the revenue generated by each member.
Optimizing for Conversion Value:
Focuses: On Maximizing the overall monetary value of conversions is the goal.
Best for: Businesses with varying product or service prices, or those aiming to prioritize high-value customers.
Example: An e-commerce store selling luxury items might prioritize maximizing revenue over the number of purchases.
Lastly, Finding the Right Balance
In many cases, a balanced approach combining both conversions and conversion value is the most effective. You can experiment with different bidding strategies and track their performance to determine the best approach for your business.
These Are Some Key considerations when making your decision:
Business goals: Clearly define what you want to achieve with your campaigns.
Conversion tracking: Ensure accurate and comprehensive conversion tracking is in place.
Conversion value assignment: Accurately assign values to different conversions to optimize for conversion value.
Testing and optimization: Continuously monitor and adjust your campaigns to find the optimal strategy.
By understanding the differences between conversions and conversion value, you can make informed decisions about your Google Ads bidding strategy and drive better results for your business.
Would you like to explore specific examples or delve deeper into any particular aspect of conversions or conversion value? Book a consultation with me.
