20% OFF Google Ads Audits Sale Ends Soon 🔥 |
d h m s

Maximize Conversions vs Maximize Conversion Value

Maximize Conversions bidding strategy offers a powerful tool for advertisers who aim to get the most out of their specified budget while focusing on increasing the total number of conversions.

Maximize Conversion Value is designed for advertisers who need to ensure that their advertising dollars are spent in a way that maximizes financial returns.

If your focus is simply on increasing the number of conversions, Maximize Conversions is the appropriate choice. However, if your goal is to enhance the profitability of your conversions, Maximize Conversion Value will better serve your needs.

But there’s a lot more to both of these bidding strategies.

Let’s get right into it!

What is Maximize Conversions in Google Ads?

Maximize Conversions is a bidding strategy in Google Ads designed to get the most conversions possible within your set budget. It uses advanced machine learning to automatically adjust your bids in real-time, aiming to convert as many leads as possible.

When you choose Maximize Conversions, Google Ads analyzes various signals at the time of the auction, such as device, location, time of day, and more, to set the optimal bid for each ad placement.

This strategy is dynamic, constantly learning and adjusting based on the performance data it accumulates, to maximize the efficiency of your ad spend.

Benefits

  • Automated Bidding: Saves time and effort as the algorithm adjusts bids for you, reducing the need for manual bid adjustments.
  • Optimal Use of Budget: Ensures your entire budget is used effectively throughout the day to achieve maximum conversions.
  • Flexibility: Adapts quickly to changes in campaign performance and market conditions without needing manual intervention.

When It’s Most Effective

Maximize Conversions is particularly effective in campaigns where the primary goal is to increase activity on the website, such as signing up for newsletters, registering for events, or downloading resources. It works best when:

  • You have a specific conversion goal like form submissions, sign-ups, or downloads.
  • There is flexibility in the value attributed to each conversion, with the main focus being on increasing the volume of conversions.
  • The campaign budget has some leeway to allow for algorithmic learning and optimization without immediate constraints on ROI.

What is Maximize Conversion Value in Google Ads?

Maximize Conversion Value is a Google Ads bidding strategy aimed at optimizing the total value of conversions rather than simply increasing the number of conversions. This approach is designed to maximize the economic return on investment from your ad spend by focusing on the value each conversion brings to your business.

This strategy utilizes advanced machine learning algorithms to adjust your bids in real-time, aiming to capture the most valuable conversions within your allocated budget.

When you set up a Maximize Conversion Value bid strategy, you have the option to assign different values to different types of conversions based on their importance or revenue potential to your business.

The algorithm then prioritizes higher-value conversions, potentially sacrificing lower-value leads to increase overall campaign profitability.

Benefits

  • Value-Focused Bidding: Directly aligns your advertising spend with the economic outcomes of your campaigns, focusing on acquiring conversions that offer the highest possible return.
  • Automated Optimization: Like Maximize Conversions, this strategy automates bid adjustments across various auctions, but with a focus on value rather than volume.
  • Customizable Conversion Values: Allows for the differentiation of conversion types, enabling more strategic targeting based on the assigned values of different user actions.

When It’s Most Effective

Maximize Conversion Value is particularly useful for businesses that have:

  • Clearly Defined Conversion Values: Companies that can quantify the value of different types of conversions will benefit most from this strategy. For example, an e-commerce site might value purchases based on the amount spent.
  • Diverse Product or Service Offerings: Businesses offering a range of products or services with varying margins or profitability levels.
  • Goal of Maximizing ROI: Ideal for campaigns where the main objective is to maximize financial returns rather than merely increasing the volume of conversions.

Implementation Considerations

To effectively implement the Maximize Conversion Value bidding strategy, it is essential to:

  • Accurately Assign Conversion Values: Ensure that the values assigned to different conversions accurately reflect their true worth to your business. Misassignment can lead to suboptimal spending and missed opportunities.
  • Monitor and Adjust Regularly: While the algorithm adjusts bids based on performance, monitoring the campaign to ensure alignment with business goals is crucial. Adjustments may be necessary as market conditions change or new data becomes available.
  • Understand the Trade-offs: Recognize that pursuing higher-value conversions might result in fewer overall conversions. It’s important to balance the volume and value to achieve the best overall outcome for your business.

Key Differences Between Maximize Conversions and Maximize Conversion Value

Understanding the key differences between Maximize Conversions and Maximize Conversion Value is crucial for choosing the right bidding strategy that aligns with your specific business objectives.

This section outlines the fundamental distinctions to help you make an informed decision based on your campaign goals.

Objective Focus

Maximize Conversions aims to increase the total number of conversions within a given budget. It is designed to capture as many leads or sales as possible, regardless of the individual value of each conversion. This strategy is optimal for campaigns where the primary goal is to maximize user actions, such as sign-ups, downloads, or any other defined conversion activity.

Maximize Conversion Value, in contrast, focuses on the total economic value generated from conversions. This strategy seeks to optimize the return on investment by prioritizing higher-value conversions that contribute more significantly to your business’s profitability. It is suitable for campaigns where different conversions have varying levels of financial impact on the business.

Bid Strategy and Automation

Both strategies use Google’s machine learning to automate bid adjustments, but they apply different criteria:

Maximize Conversions adjusts bids with the sole aim of getting the most conversions for your budget. It dynamically responds to various signals like device type, location, and time of day to optimize for conversion volume.

Maximize Conversion Value also considers these signals but goes further by incorporating the economic value of different conversions into its bidding decisions. It adjusts bids not only to win more conversions but to win conversions that are likely to be more valuable, based on the values you’ve assigned to different types of conversions.

Campaign Management and Complexity

Maximize Conversions is generally simpler to manage because it requires less detailed input about the value of conversions. It is a good choice for businesses that do not have clearly differentiated values across various conversion types or for those new to using automated bidding strategies.

Maximize Conversion Value requires a more sophisticated setup since it involves assigning monetary values to different conversion actions. This strategy demands a deeper understanding of the relative worth of various customer actions and how they contribute to overall business goals.

Performance Metrics and Evaluation

The evaluation of campaign performance also differs between the two strategies:

Maximize Conversions is typically assessed by counting the total number of conversions achieved, making it straightforward to measure success by the volume of user actions.

Maximize Conversion Value is evaluated based on the total monetary value of the conversions obtained. Success is measured not just by how many conversions are secured, but by the total economic benefit they bring, which involves a more nuanced analysis of campaign outcomes.

Choosing the Right Strategy: Maximize Conversions vs Maximize Conversion Value

Selecting between Maximize Conversions and Maximize Conversion Value as your Google Ads bidding strategy is a pivotal decision that hinges on understanding your specific business objectives, the nature of your conversions, and your overall marketing strategy.

This section provides a guideline to help you align your choice with your business goals effectively.

Assessing Your Business Objectives

Clarify Your Primary Campaign Goal:

  • Volume or Value? Determine if the primary aim of your campaign is to simply increase the number of conversions (such as leads, sign-ups, downloads) or to maximize the economic value derived from each conversion. If your goal is to drive as many conversions as possible without specific consideration for the value each brings, then Maximize Conversions is suitable. However, if your campaign aims to generate the most revenue or profit, Maximize Conversion Value will likely be more beneficial.

Understanding the Nature of Your Conversions:

  • Uniform vs Varied Conversion Values: Analyze whether all your conversions hold similar values or differ significantly. For businesses where all conversions contribute similarly to the bottom line, Maximize Conversions can suffice. Conversely, if your conversions range widely in value—such as selling products at varying price points or services with different tiers—Maximize Conversion Value can help focus your ad spend where it counts most.

Evaluating Your Capacity for Management

Simplicity vs Complexity in Management:

  • Resource Availability: Consider your available resources for managing campaigns. Maximize Conversions requires less detailed setup than Maximize Conversion Value, which needs accurate assignment and regular adjustment of conversion values based on performance data.
  • Expertise: Assess your team’s expertise and familiarity with advanced Google Ads features. Maximize Conversion Value requires a deeper understanding of analytics and a more strategic approach to continuously align bidding with business outcomes.

Integration with Overall Marketing Strategy

Complementarity with Other Marketing Efforts:

  • Synergy with Marketing Activities: Evaluate how these strategies integrate with your other marketing activities. For instance, if other parts of your marketing mix focus strictly on high-value customer segments, Maximize Conversion Value might complement this approach by targeting high-value conversions through advertising.
  • Long-Term vs Short-Term Goals: Align the bidding strategy with your long-term business goals. If building customer relationships and expanding your customer base is the priority, Maximize Conversions might help broaden your reach. If enhancing ROI in the short term is crucial, Maximize Conversion Value could be more appropriate.

Making the Decision

Testing and Adaptation:

  • Experimentation: If uncertain, consider testing both strategies to see which performs better in achieving your specific goals. Google Ads allows for A/B testing, enabling you to run parallel campaigns to directly compare the performance of Maximize Conversions versus Maximize Conversion Value.
  • Ongoing Adjustments: Whichever strategy you choose, remain agile. Monitor campaign performance closely and be ready to make adjustments. Market conditions and consumer behavior can change, and your approach might need to evolve in response.

Best Practices for Implementing Each Strategy

Effectively implementing either the Maximize Conversions or Maximize Conversion Value bidding strategy requires a clear understanding of best practices that can optimize performance and align with your marketing objectives.

Here are essential guidelines for each strategy:

Best Practices for Maximize Conversions

Refine Targeting and Keywords:

  • Target Audience Precision: Ensure your targeting settings accurately reflect your ideal customer demographics and behaviors. Tight audience targeting helps avoid wasted impressions and enhances conversion potential.
  • Optimize Keyword Quality: Regularly review and refine your keyword lists. Remove underperforming keywords and add new ones based on search query reports to maintain relevancy and efficiency.

Ad Copy and Landing Pages:

  • Compelling Ad Copy: Craft engaging and clear ad texts that directly address the needs and interests of your target audience. Effective calls to action (CTAs) are crucial in driving conversions.
  • Optimized Landing Pages: Align landing pages with the promises made in your ads to ensure a cohesive user experience. Ensure that landing pages are optimized for conversion, with clear navigation and minimal distractions.

Continuous Campaign Monitoring and Adjustment:

  • Regular Review: Analyze performance data frequently to understand what’s working and what isn’t. Adjust bids, ads, and targeting based on performance metrics.
  • Utilize Automation Tools: Consider using automated rules or scripts to manage bids based on specific performance criteria, helping maintain or boost campaign effectiveness over time.

Best Practices for Maximize Conversion Value

Define and Assign Accurate Conversion Values:

  • Set Realistic Values: Assign monetary values to various conversion types based on their actual contribution to your business revenue or profit. Regularly update these values to reflect any changes in your business model or market conditions.
  • Segment Conversion Actions: Differentiate between types of conversions and assign values that reflect their relative importance or profitability.

Advanced Tracking and Analytics:

  • Implement Comprehensive Tracking: Use advanced tracking configurations to capture detailed insights into how different types of conversions are performing. This data is crucial for the Maximize Conversion Value algorithm to function effectively.
  • Leverage Analytics: Deep dive into analytics to understand the customer journey and identify which conversions are driving the most value. Use this insight to refine your campaigns and focus on high-value activities.

Strategic Budget Allocation:

  • Adjust Budgets Based on Performance: Allocate more budget to campaigns and ad groups that are driving significant conversion value. Be ready to shift budgets from lower to higher performing areas to maximize overall return.
  • Experiment with Bid Adjustments: Experiment with different bid adjustments for locations, devices, and ad schedules to optimize conversion value based on varying performance across these dimensions.

Conclusion

Choosing between Maximize Conversions and Maximize Conversion Value depends on your specific business goals, the nature of your products or services, and your capacity to manage and optimize campaigns.

If maximizing the number of conversions is your goal without a direct focus on the value each conversion brings, then Maximize Conversions is your best bet.

However, if your focus is on driving the highest monetary return from each conversion, then Maximize Conversion Value will better suit your needs.

We have another cool comparison guide for you: Dynamic search ads vs Standard search ads

What type of tagging are you using for your campaigns? Check out our Google Ads Auto-Tagging vs Manual Tagging guide and find out which type is the one for you!

Michael Schroder

Michael Schroder

Michael Schroder is a Google Ads and SaaS marketing consultant. He has been managing $200k-$300k monthly ad spend and has worked with 200+ SaaS companies. The thing that makes him unique is his data-led approach and his focus on SaaS businesses.