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What they are and how they are implemented

What they are and how they are implemented

Google Ads announced that advertisers now want more control over smart bidding with conversion value rules.

Conversion value rules adjust the value of a given conversion based on factors that affect lead quality and value.

What are conversion value rules?

Conversion value rules allow advertisers to tell Google Ads what factors are most important to them when applying rules.

The rules allow advertisers to indicate cases where a conversion is worth more or less than the average conversion, based on different characteristics of the auction. Having this control will also give advertisers and intelligent bidding algorithms better data to bid and budget more efficiently.

What factors can advertisers choose from when applying rules?

Advertisers can apply rules for properties such as location, entity, and audiences.


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So for example, local businesses may indicate that a conversion is worth more to them if the lead is local. B2B companies could prioritize the B2B audience in detailed demographics. A reseller can increase the conversion value for customers who are likely to have high LTV.

Example of conversion rule scenario

Let’s say a particular device tends to drive a large amount of leads, but unfortunately does not convert as well from lead to sales. You can create a conversion rule to tell Google that these conversions are only worth half the current value specified for the campaign.


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So let’s say the account is set up to value all conversions at $ 20. If mobile items tend to convert to sales with a conversion rate of 50% of the desktop, a conversion rule may be introduced to notify Google that mobile items only half the value of other leads is worth it. then Google would use a value of $ 10 for mobile searches, while continuing to optimize all other searches to a value of $ 20.

How are rules created?

Advertisers can navigate to the conversion settings in their account and select value rules in the left panel. You can select the primary conversion of audience, entity or location and then choose between subcategories. You can select multiple options within a category (e.g., you can select Texas, California, Michigan), and these will be treated as an OR condition, meaning the rule would apply to applicants from all of these locations.

There can be no more different rules for the device.

Secondary conditions can be used, but if a secondary condition is used, the rule only runs if both conditions are met. Secondary conditions are optional, but must be of a different type than the primary condition. You can e.g. Do not select locations for both the primary and secondary rule.

You then define the value adjustment. You can choose to multiply or add. You can multiply the conversion value from .5x to 10x. Using the “add” criteria, you can add a positive value on top of the existing conversion value being passed.


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How are the rules applied?

The rules are applied at the time of the auction based on the specified criteria.

No matter how many rules are created, only one rule can be applied to a given conversion. If a customer meets the conditions for multiple value rules, Google decides which one to use based on the following logic:

For the placement rule, the most precise placement rule is used. For audiences, Google follows the hierarchy below. If there is a tie, Google selects a rule using the “multiply” logic over the “add” rule. If there is a tie, Google selects the highest adjustment. This is the hierarchy used for audience application, which means that customer matching rules trump all other audience rules in situations where they overlap and so on in the line: Customer MatchRemarketing & Similar Audiences, Affinity & In-Market audiences Detailed demographics


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Can you report value rules when converting?

You can report conversion value rules using the Segment tool on the Campaign tab. From there, you can select “conversions” and then “value rule adjustment”. From there, you can select one of the following segment options:

Initial value (rule applied) – which shows you the value of conversions affected by the rule. Initial value (no rule applied) – which shows you the total recorded value of conversions that did not have a rule applied. or Unit – the net adjustment when rules were applied. If store visits report columns and conversion value segments are selected, you can use this to segment the conversion value rules.

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