Value of conversions
When it comes to measuring conversions with Google Ads, there can be countless activities that customers perform on your site. Keep in mind, however, that not all conversions are the same. Some are more valuable to your business than others. By adding value to conversions, you’ll be able to identify and focus on conversions.
A conversion doesn’t have to be just a purchase. A conversion can be anything you want to track and then evaluate. The most frequently watched conversions are:
- making a purchase on the e-shop
- subscribe to the newsletter
- sending the contact form
- calling a phone number
- e-book download
- click on a banner
If you’re tracking different conversions, each one will probably have a different value for you. This means that the way you want to achieve or evaluate this conversion should also be customized.
Wondering how to do it? The answer is the conversion value you set for the various conversions you want to track. Setting them up would mean a number of benefits for you – for example, differentiating individual conversions or the ability to calculate their total value, not just the number
What is ‘conversion value’?
A conversion value is a numerical monetary value that you assign to a particular conversion, depending on how important it is to your business or how important it is to it. In order to set a conversion value, you need to track conversions on your site.
This means that you have a conversion action set for the specific pages where the conversion should be counted, in which you specify the value of that conversion. If you haven’t set up conversion promotions yet, you can use the simple instructions provided by Google.
What values can you set?
You always set values for a specific conversion. If your conversions include calls for which you set a conversion value of € 5, and registrations worth € 20, that means registrations are 4 times more valuable to you.
Of course, it may happen that both shares have the same value for you. Conversions always appear in Reports in the currency that you have set as your billing currency in your Google Ads. However, you can select a different currency during setup.
Values of specific transactions
The specific transactions performed by customers of your e-shop are, of course, of different value. Therefore, it is necessary to set the values of specific transactions for them. For this setup, you will probably need the help of a web developer who can integrate these values into the transaction tracking tag.
Conversions without monetary value
If an action on your site doesn’t have a monetary value, such as registration, but you want to measure it, you’ll assign it a non-monetary value. This is a key performance indicator (KPI).
Setting conversion values has several benefits that we strongly recommend using:
Return on investment (ROI)
Conversion values make it easier for you to track, measure, and optimize ROI, the value of your profit when considering your advertising spend.
Target Return on Advertising Spending (ROAS)
The ROAS flexible bidding strategy allows you to increase the value of a specific value according to your goals while achieving an average target return on advertising spend.
Thanks to the set values, you will get clearer statistics via the Conv. Value / Price column. You can then monitor the performance of specific keywords, ad groups, and campaigns, and change their settings as needed. In addition, you’ll find the total value of conversions on your site, not just the number of conversions.
Flexible bidding strategies allow you to set your bids automatically and optimize for the performance goals you set for specific campaigns, ad groups, or keywords. Machine learning then takes into account various details to adjust the price in the auction to achieve the best possible result.
Values and strategies of offers
After setting conversion values, you can use an automatic bidding strategy such as maximize conversion value. With an automatic bidding strategy, you’ll ensure that your bids are automatically adjusted to optimize for your performance goals. Strategies help improve your ad performance with up-to-date data and then adjust your bids.