How Value Based Bidding works and its benefits

[ishanijerin1]

Bidding is adjusted based on ROAS and conversion value, but that only applies to EC, right? You may be thinking that conversion points for document requests and store reservations cannot be used because they don't generate sales (= no conversion value).

It is true that sales do not occur just from requests for information or reservations to visit a store. However, investing in simply increasing the number of such conversions through tCPA or maximizing the number of conversions does not necessarily increase profitability. Therefore
, by adopting a value-based bidding strategy, you can strengthen your bidding by identifying the potential users and paths that ultimately lead to sales at offline events , which will lead to increased sales and ROAS.

Now, we will use an example to explain how to set conversion values ​​for conversions that do not generate sales, such as requests for information or store reservations.

Concept of conversion value and calculation example
Conversion value can be calculated as a virtual value standard based on the ratio of people reaching each step leading to a conclusion.


In the case of a product worth 100,000 yen if a contract is concluded after a customer visits the store

If a contract is concluded, a sale will be generated, which will generate a value of 100,000 yen.
If the conversion rate from store reservation conversion to store visit and contract is 50%, the value of the store reservation conversion is 100,000 yen x 50%, which is 50,000 yen
If the rate at which users who move onto the form screen complete a reservation is 80%, the micro-conversion of filling out the form will be worth 40,000 yen (50,000 yen x 80%), which is the value of the next step, a reservation to visit the store.
In this way, you can organize the steps leading up to a sale, prepare an environment where you can measure the progress of each step, and assign an appropriate conversion value.
Even if there are multiple conversion points, you can assign an appropriate conversion value by calculating the percentage of each conversion point that leads to a sale. This allows you to optimize your conversion points to increase the number of conversion points that are most likely to lead to sales .

In addition, even if you have multiple products and the sales amount varies for each plan, the conversion value you should allocate will change if you understand usages of car owner database which product each conversion point leads to in sales. By
properly understanding and allocating these, you can achieve your ROAS goal and maximize your sales.

How to set conversion value
Google Ads
Select "Conversion" from the Tools menu
Go to the conversion creation screen from the plus sign
Select a conversion type
① If you are tracking one conversion point with one tag, or multiple conversion points with one tag but the conversion value is the same, select [Assign the same value to all conversions] in Value and enter the amount to assign as the conversion value (see the figure below).
② If you are varying the conversion value for each conversion point with one tag, select [Assign different values ​​for each conversion] in Value and enter the default value to be used when no value is specified (※1)
Set other items as necessary and create