Bid management for digital campaigns is becoming increasingly automated. This is true of all platforms, and the trend is set to intensify. The latest campaign types, such as Google Ads’ Discovery Ads, now only support automatic bidding.
To make the most of automatic bidding strategies, two factors are crucial:
- KPIs on which algorithms will optimize
- The data you share with these algorithms
In other words, the more signals you provide to the algorithm, the more likely it is to make the right optimization decisions. So why is value-based campaign optimization becoming a relevant solution?
Not all visitors to your site have the same value.
Generally speaking, not all customers bring the same value to a company, and not all prospects have the same potential. In the same way, not every action users take on your website has the same value.
Some visits are therefore less important, while others are more valuable and need to be optimized differently.
How to optimize for value?
When we think of conversion value, we think of merchant sites and subscriptions with different formulas. In these cases, value-based optimization is a must, and it’s usually already in place if your business corresponds to one of these two types. But value-based optimization isn’t just reserved for transaction targets and subscriptions!
Let’s take the example of a website promoting a software product, whose campaign objective is lead generation.
Instead of optimizing solely for requests for quotes via form or telephone (the actions that most closely resemble a lead), we can assign values to all other actions on the site. The aim is for the value to be set according to the importance of each action, so as not to ignore the credit each one should receive. After all, all these actions also play a (sometimes decisive) role in the customer journey!
For even more advanced optimization :
To take this a step further, you can connect your CRM to advertising platforms, and import qualified leads, or even better, transformed leads, to optimize your campaigns on these actions.
The next level consists of calculating your margin and optimizing according to your actual profit.
The final step is optimization based on Lifetime Value (LTV), which is more complex to implement, but far from impossible!
What can you expect from conversion value optimization?
According to Google, advertisers achieve an average +14% conversion value by switching to this method. In fact, by differentiating potential customers and adjusting bids accordingly, you’re one step closer to optimizing for actual business performance.
