Advanced Google Ads Library | AdOptics

What Are the Key Differences Between Maximize Conversions and Maximize Conversion Value in Google Ads?

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Summary

The key difference between "Maximize Conversions" and "Maximize Conversion Value" bidding strategies in Google Ads lies in their focus: "Maximize Conversions" aims to generate the highest number of conversions within your budget, while "Maximize Conversion Value" focuses on driving the highest total conversion value (e.g., revenue) from your ads.

Understanding Maximize Conversions

"Maximize Conversions" is an automated bidding strategy in Google Ads designed to get as many conversions as possible within your specified daily budget. It automates bid adjustments by using machine learning to optimize for users who are most likely to complete the desired action, such as filling out a form or making a purchase.

Key Features

  • Focus: Quantity of conversions (e.g., sign-ups, purchases).
  • Budget Utilization: Fully utilizes the daily budget to maximize conversion count.
  • Use Cases: Best for campaigns where all conversions have similar value (e.g., a fixed-price product or service).

Example

Suppose you run an online clothing store and set up a "Maximize Conversions" campaign. The strategy will aim to generate the highest possible number of purchases, regardless of the purchase amount, as long as it fits within the budget.

Understanding Maximize Conversion Value

"Maximize Conversion Value" is also an automated bidding strategy, but it focuses on extracting the most total value from your conversions rather than just their quantity. This strategy is ideal when your conversions vary in value, such as purchases of products with different prices or services with tiered pricing.

Key Features

  • Focus: Total conversion value (e.g., revenue or profit).
  • Budget Utilization: Allocates budget to maximize return in terms of conversion value instead of just count.
  • Use Cases: Suitable for e-commerce businesses or lead-gen campaigns where conversion value (e.g., revenue) is a priority.

Example

Imagine you run an electronics store with products ranging from $50 (basic accessories) to $2,000 (high-end gadgets). Using "Maximize Conversion Value," the algorithm will prioritize users likely to purchase higher-priced items, thereby maximizing revenue rather than simply increasing the number of sales.

Key Differences Between the Strategies

Primary Goal

  • Maximize Conversions: Get as many conversions as possible.
  • Maximize Conversion Value: Drive the highest total conversion value, even if it results in fewer overall conversions.

Best Use Cases

  • Maximize Conversions: When all conversions are of equal value or when the goal is to increase conversion volume.
  • Maximize Conversion Value: When conversions have different values, such as varying product prices or lead quality.

Bid Optimization

  • Maximize Conversions: Focuses on users likely to convert, regardless of the value of the conversion.
  • Maximize Conversion Value: Focuses on users likely to convert and yield the highest conversion value.

Budget Utilization

  • Maximize Conversions: Fully spends the daily budget to achieve the highest number of conversions.
  • Maximize Conversion Value: Allocates budget to conversions that yield the most value, potentially leaving unused budget if it's not efficient to spend further.

Additional Considerations

Data Requirements

  • Maximize Conversions: Works effectively with minimal historical data.
  • Maximize Conversion Value: Requires accurate conversion value tracking (e.g., dynamic value tagging) to perform optimally.

Integration with Target ROAS

For advertisers seeking more control over profitability, "Maximize Conversion Value" can be paired with a Target ROAS (Return on Ad Spend) setting. This adds a profitability threshold for the campaign. For example, you can specify that you want a minimum return of $5 for every $1 spent ([Google, 2023]).

Conclusion

The choice between "Maximize Conversions" and "Maximize Conversion Value" depends on your campaign goals. If you aim to increase the number of conversions and all conversions have similar value, "Maximize Conversions" is ideal. However, if maximizing the total revenue or conversion value is more important, especially when values vary significantly, "Maximize Conversion Value" is the better choice. Properly setting up conversion tracking and defining your goals ensures optimal performance with either strategy.

References