Many advertisers understand value-based bidding in theory, but few have the signal quality to make it work. The difference comes down to conversion data, which is crucial in automated PPC bidding. With 53% of internet traffic coming from bots and 1 in 4 paid leads being fake, it’s essential to have clean data to optimize ad spend.
How Value-Based Bidding Works
Value-based bidding optimizes toward the total value of conversions rather than the raw number of them. Instead of chasing more conversions, it chases more valuable ones. This strategy is only as good as the signal underneath it, and many implementations prioritize the strategy while neglecting the underlying signal.
To fix value-based bidding, it’s essential to consolidate the conversion signal, let values update as leads progress, and remove spam instead of just discounting it. By doing so, advertisers can give Google a clean and honest picture of what a good customer looks like, ultimately reducing the cost per qualified lead.
Original reporting: KTVZ (Central Oregon) — read the source article.
