When setting ROAS targets, use the last 30 days’ return on ad spend as a benchmark.
Google’s target ROAS recommendations are calculated based on your actual ROAS over the last few weeks.
This recommendation excludes performance from the last few days to account for conversions that may take more than a day to complete following an ad click or interaction (such as an engaged view).
You can find more details on target ROAS here.
Get Started With An Experiment
While you can launch value-based bidding directly, you may want to start with a small test using a campaign experiment. This allows you to compare the performance of value-based bidding against your existing bidding strategy and make data-driven decisions.
You have two options to create a campaign experiment:
One-Click Experiment From Recommendations Page
You may see suggestions on implementing value-based bidding on your Recommendations page.
The recommendation to “Bid more efficiently with Maximize conversion value” will show if our simulations identify that your account is measuring two or more unique conversion values and will likely benefit from this strategy.
From this recommendation, you can create a one-click experiment to test the impact of value-based bidding on a specific campaign.
Custom Experiment
You also have the option to create a more tailored experiment to test value-based bidding in your campaign.
Be sure to choose a campaign that receives sufficient traffic and conversions to generate statistically significant results.
Configure the experiment to use value-based bidding, while the original campaign continues to use your existing bidding strategy.
See the instructions here to set up a custom experiment.
How To Jumpstart Value-Based Bidding
You can employ strategies to jumpstart the system, such as initially setting a low ROAS target or starting with Maximize conversion value without a ROAS target.
If you opt to start with Maximize conversion value without a target, be sure that your budgets are aligned with your daily spend goals.
Allow A Ramp-Up Period Before You Optimize
Once you’ve launched value-based bidding, give the system a ramp-up period of two weeks or three conversion cycles. This allows Google Ads to learn and optimize your bids effectively.
When measuring performance, be sure to exclude this initial period from your analysis to obtain accurate insights.
We’ve now covered all the basics for getting started with value-based bidding.
In our last segment, we’ll discuss monitoring and optimizing your performance to drive value for your business.
More resources:
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