In this post, we’ll explain the new google ads campaign approach, what it means for your company, how to implement it, and how big brands are implementing it to get new customers.

Google has rolled out a new Google ads campaign tool to elevate your brand called “bidding for value.

According to Google’s internal data report, more than 80% of advertisers use an automated bidding strategy.

Though the value-based bidding approach isn’t new, the recommendation to focus on it is coming from Google itself.

Brands can now bid on their desired outcome in their Google ad campaign using this new value bidding approach.

Instead of cost per click (CPC) and cost per action (CPA) bidding, brands can now align their bids to their business goals and objectives, such as increasing profit and lead generation, with this new Google ad strategy

According to Google, the key is to use first-party data in your Google ads campaign.

Feeding conversion values such as profit into campaigns allows businesses to target their most valuable customers. 

In the most advanced value bidding strategy, marketers can also use a customer’s lifetime value in the value bidding setup.

Marketers who use the value bidding approach in their Google ad campaigns get a greater return on their ads campaign than those who don’t.

Statistics have it that value-based bidding using return on ads spent 

( ROAS ) gets 14% more results than CPA.

1. Value-based bidding allows you to focus on the customers and products that will give you the highest return on your ads spent.

 2. Any company can use value-based bidding. Whether a large company or a small business.

3. Value-based bidding increases your return on investment by focusing on your company’s goals and objectives,  such as increased sales, increasing profit, or lead generation.

4. As I said before, with the bidding for value approach, you get more value from your ad budget than focusing on CPA.

1. Set up conversion tracking. Install Google Analytics on your website to track your customers’ activities on your site.

2. Then decide what your set budget for these Google ads is going to be.

3. Now it’s time to assign value to your customers.

Every customer is important. But in this situation, you’ll assign value to your customers according to your business objectives.

For example, if your company’s objective is to make sales, then you’d have to identify the customers that are leads, targeted leads, the ones that are qualified for sales, and the ones that close sales.

In this case, you know you’re going to have to focus your Google ads on sales-qualified leads to make a sale.

With this customer value data, you’re able to concentrate your digital marketing efforts where you’ll get the maximum return on your Google ads campaign budget.

The digital marketing World is moving so fast and it’s good to be in trend with the latest happenings.

Some companies have taken the lead in implementing the value-based bidding strategy.

One of them is H&M, one of the world’s fashion retailers. This company has been implementing search ads to drive revenue growth.

However, when their digital marketing team implemented the new value-based bidding approach, they had significant results.

Their revenue from search increased by more than 70%, while their new customer acquisitions increased by 65% in one year.

How did they do it?

According to the digital marketing team, after a detailed study of the company’s data and results, the company decided to reduce its Google ads budget spent on loyal customers who’ll probably buy from them anyway. and spend more on surfacing ads for new customers.

The company decided on a new KPI, which is to increase customer share.

They also use first-party data from the H & M membership club to gain deeper insight into the value of each customer segment.

Not only that, they used the data to get a view of how customers are split across channels.

With this in hand, the digital marketing team created Google ads that are tailored to each segment. Those are the loyal customers and the new customers.

But the greater part of their ads budget was allocated to surfacing ads to new customers.

This is what brought about the significant result above in their google ads campaign.

Using value-based bidding in your Google ads campaign is a great way to get the best return on your ads spent because it’s focused on your most valuable customers and products.

Why don’t you give it a try to reach more clients?

Are you just getting your feet wet in digital marketing? Start with our beginners’ approach to an effective digital marketing strategy.